PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1519299
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1519299
The digital signal processor (DSP) market is set for considerable growth, driven by various factors across multiple industries. This market's expansion is largely propelled by the rising demand from the automotive sector, where DSPs are critical components in infotainment systems and other electronic applications. By 2024, the market is forecasted to reach a value of $78.22 billion, and by 2031, it is projected to grow to $124.4 billion, demonstrating a compound annual growth rate (CAGR) of 6.90%.
The booming automotive industry is a major catalyst for DSP sales.
The widespread use of DSP chips in consumer electronics is another significant factor.
The increasing production and sales of smartphones are anticipated to further drive DSP demand.
The rapid digitalization across industries continues to present opportunities for DSP manufacturers.
The growing adoption of internet protocol cameras for surveillance is expected to boost the market.
The surge in data traffic due to the proliferation of connected devices bodes well for DSP demand.
Digital signal processors are specialized microprocessor chips designed for the needs of digital signal processing. Manufactured on MOS integrated circuit chips, DSPs have become essential in contemporary signal-processing systems. They are commonly used in speech recognition systems, telecommunications, radars, and audio signal processing, as well as in various consumer electronic devices such as mobile phones, high-definition televisions, and disk drives. DSPs are primarily utilized to measure, compress, or filter continuous real-world analog signals, making them ideal components for portable devices like smartphones due to their excellent power efficiency.
The increasing use of DSPs in electronic systems such as laptops, smartphones, and embedded systems, along with high adoption rates, is driving the global market. The automotive industry, in particular, is likely to see substantial growth in DSP demand, given their use in automotive infotainment systems and other electronic devices. The rising production and sales of vehicles will create significant growth prospects for the market.
The Asia Pacific region currently dominates the global digital signal processor industry, driven by the rapid expansion of the automotive and consumer electronics sectors. Key countries in the region, including China, India, Vietnam, Taiwan, and the Philippines, are prominent manufacturers of consumer electronics such as smartphones and laptops. Additionally, countries like China, Japan, India, and South Korea manufacture a significant percentage of global automobiles. This regional production capability, coupled with the rising adoption of smartphones and advancements in the automotive sector, is expected to drive market growth.
DSPs are essential in various applications, including speech processing, audio signal processing, video data compression, data transmission, and radar systems. In the automotive industry, they enhance the sound quality of car infotainment systems and are crucial in LIDAR sensor processing for autonomous vehicles. The use of DSPs in infotainment systems is particularly noteworthy due to their ability to handle complex tasks without delay, involving audio systems, GPS-based navigation, DVD systems, and hands-free cellular phones within a single system.
The global sales of digital signal processors have been increasing at a steady rate, and this trend is expected to continue over the next decade. The growing demand for vehicles worldwide, advancements in wireless infrastructure, and the increasing integration of high-performance digital signal processing algorithms within field-programmable gate arrays are key factors driving market growth.
United States: The demand for digital signal processors is rising in the United States, driven by the automotive and aerospace & defense sectors. The integration of advanced technologies such as ADAS in vehicles is further boosting DSP sales. Additionally, rising investments in the defense sector are creating lucrative growth opportunities for DSP manufacturers.
China: The digital signal processor market in China is expanding rapidly, supported by the robust growth of the consumer electronics and automotive industries. China is a leading manufacturer of automobiles and consumer electronics, which significantly contributes to the demand for DSPs. The ongoing digitalization and increasing vehicle production in the country are expected to further elevate DSP demand.
Type of Digital Signal Processors: The global market is segmented into single-core and multi-core digital signal processors. Demand is expected to remain high for multi-core DSPs due to their enhanced performance, lower power dissipation, and faster processing speeds compared to single-core DSPs. Multi-core DSPs are increasingly preferred across various industries for their ability to provide high performance even with small frequency variations.
End-User Segments: The automotive segment is projected to be the leading end user of digital signal processors. DSPs play a crucial role in advanced driver assistance systems, infotainment systems, LIDAR sensor processing, and automotive body processing. The rising global demand for automobiles and the increasing emphasis on more fuel-efficient vehicles are expected to drive DSP demand in this segment. Additionally, the growing production of self-driving/autonomous cars will further boost market growth.
The digital signal processor market is characterized by intense competition among key players who are investing heavily in new product development and collaborations. Notable companies in the market include Infineon Technologies AG, Sony Corporation, Analog Devices, Inc., Broadcom, Inc., NXP Semiconductors N.V., Qualcomm, Inc., Samsung Electronics Co., Ltd., STMicroelectronics N.V., Texas Instruments, Inc., Toshiba Corporation, and Xilinx, Inc.
STM Electronics launched an intelligent sensor processing unit (ISPU) that combines MEM sensors and a digital signal processor on the same silicon.
Jio Platforms Ltd and NXP Semiconductors N.V. collaborated to enable expanded 5G use cases across India.
Synopsys introduced a novel ARC VPX DSP processor IP.