The Advanced TV semiconductor market will grow 25 percent CAGR in units and 30 percent in revenue, according to a new report by Jon Peddie Research. The report shows that while Integrated Digital Processors represent the fastest growing segment, contrary to popular opinion, the video processor segment is declining slowly but not dropping like a rock.

“The regional data shows that you can’t assume what happened in the U.S. translates directly to other parts of the world in terms of price erosion, integration of functions or ASP declines. Demand for DTV is a rapidly growing global phenomenon, with HD programming and TV sales driven by the customers wanting flat screen TVs and the transition from analog to digital broadcasting,” said Henry Choy, Vice President of TV and Video Research at Jon Peddie Research. “With the combination of the switchover to digital, consolidation in the supplier market, and declining price points, the worldwide market for DTV semiconductors will grow from more than 98 million in 2006 to over 200 million in 2012.”

Global revenue from the sales of integrated digital TV receivers soared by 28 percent in 2007 compared with the previous year, according to the new study -- in spite of declining ASPs. Jon Peddie Research says the ASP will definitely erode but new features, performance and technologies will protect it from a free fall.

Unit shipments of integrated digital processors increased 47 percent from the 15 million receivers sold in 2006, and future performance should also be impressive, with integrated digital processor volumes projected to hit over 100 million units by 2012. The market for video processors will not go away. The volumes will decline slowly from 100 million in 2007 to 82 million in 2012.

The expected OEM revenue from digital TV semiconductors in 2012 will be more than $1.5 billion, with North America accounting for approximately a fourth of the revenue. Other geographical regions with prominent market share will be Asia-Pacific with over half, and Europe at 25 percent.

About this study

The Jon Peddie Research report, Advanced TV (ATV), reports on the segments and semiconductor opportunities by geographical region. The report forecasts unit and revenue sales of digital television (DTVs) components worldwide in China, Japan, Europe, and the United States. The study forecasts the worldwide and U.S. DTV market by semiconductor technology, then by transmission (analog/digital) size, and by region. Also included are worldwide forecasts of digital decoders, integrated digital processors and video processors.

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