Regular and Intensive Phases of R&D Characterize Multimedia Chipsets Market
Leading companies in the multimedia chipsets market are currently witnessing a high demand for smartphones and other handheld and portable devices across the world. Users are not only demanding better quality of hardware components, but also demand them to be as cost-effective as possible. This drives the multimedia chipsets players into regular and intensive phases of research and development. As a result of the high rate of technological innovation, both players and consumers retain an improving quality of the devices as well as market revenue increments.
Multimedia chipsets companies are also benefitting from the rapid expansion of internet protocol television (IPTV) and set top boxes. These devices are in an exceptionally high demand due to the rapid migration of consumer from the conventional TV to online viewing and use of the smart TV.
The above factors, combined with the high growth potential of multimedia chipsets in the gaming industry and the wearable devices industry, allows the multimedia chipsets revenue to progress at a CAGR of 6.6% between 2015 and 2023. This market is expected to be valued at US$40.99 bn by the end of 2023.
Asia Pacific Continues to be Lucrative Region for Multimedia Chipsets Makers
Asia Pacific has been leading the demand for multimedia chipsets in the recent past and will continue dominating the market shares in both revenue and volume for the coming years. This regions shows an especially high demand for handheld devices and set top boxes and IPTVs, which form the two most lucrative application segments for multimedia chipsets players. This region is expected to hold 46.76% of the multimedia chipsets revenue generated by 2023.
Asia Pacific multimedia chipsets also take in high investments for SoC manufacturing, which complements the fact that this region is a global hub for semiconductor companies. China holds the largest number of smartphone users in the world, making it a key market for multimedia chipsets players. At the same time, Singapore offers a very high level of market penetration for smartphones and consumer electronics, allowing most entrants a good shot at gaining revenues.
Graphics Chipsets in High Demand as Users Desire Devices for Streaming, Multitasking
Graphics chipsets have consistently held the larger revenue share in multimedia chipsets in recent years. Current market trends indicate that this segment will continue to hold the dominant share for the coming years as well. A key reason for this high demand is the growth in the number of users demanding consumer electronics for the purpose of watching videos and movies online. Improved internet facilities across the world are making it easier for consumer to stream videos online, considerably increasing their numbers over the past few years.
Consumers have also expressed high demand for electronics devices capable of multitasking. Most multitasking components of a consumer’s usage involve switching between different graphics on a device, which requires strong and stable graphics chipsets. The level of innovation is high among the three leading providers of graphics hardware – Intel, NVidia, and AMD. Each company holds a large number of users based on their difference in utility, preferences, and the company’s marketing strategies.
The key manufacturers of multimedia chipsets globally include AMD, Inc., Intel, NVidia, Realtek, Yamaha, Qualcomm, and Cirrus Logic, Inc.
Multimedia chipsets are crucial for various electronic devices and deals with audio and video processing. These chipsets not only reduce the cost but also offers various specifications that differentiate it from other devices.
By function, the global market for multimedia chipsets has been segmented into: audio chipsets, and graphics chipsets. By application, the global market for multimedia chipsets has been segmented into: digital cable TV, set top box and IPTV, handheld devices that includes smart phones, tablets and portable gaming consoles, home media players (audio and video) and others. The others segment includes digital signal processors and chipsets for imaging products (digital camera, camcorder etc.)
In 2014, by product function, graphics multimedia chipsets accounted for the largest market share globally and their demand is expected to rise due to increasing demand from the gaming industry. Sophisticated games require a dedicated graphics card of up to 1 GB, which has enabled leading graphics chipsets manufacturers such as Nvidia, Intel, and AMD to invest in both computer and video games industries. The application of multimedia chipsets in handheld devices held the largest market share in 2014 and is expected to remain the market leader throughout the forecast period. Decrease in smart phone prices, increase in usage of smart phones with larger screen size (generally 5.5 inch and above), and growing online activity from smart phones are the main factors boosting the demand for smart phones globally which in turn drives the global smart phones chipsets segment.
Increasing demand for handheld and portable consumer electronic devices in the coming years is expected to drive the market of multimedia chipsets which facilitate faster data transmission and better video resolution in a cost effective way. Decreasing prices of consumer electronic devices coupled with increasing disposable income is driving the market of handheld consumer electronic devices.
Rapid expansion of set top box and IPTV is also driving the global multimedia chipsets market. Recently, initiatives has been taken by the government of different regions that mandated the digitization of conventional cable television along with migration from analog to internet based digital television system has boosted the demand of set top box at an exponential rate.High fixed cost associated with establishment of production unit is restraining the growth of global multimedia chipsets market. However, rise in gaming industry followed by increase in demand of wearable devices market are some of the major opportunities for the global multimedia chipsets market.
Asia Pacific held the largest market for the multimedia chipsets market in terms of revenue in 2014 and is projected to stay as the market leader over the forecast period. Market growth in Asia Pacific is chiefly attributed to heavy investment in System on Chip(SoC) manufacturing technology as APAC is the biggest hub for semiconductor manufacturers. North America is the second largest market for multimedia chipsets in terms of revenue. France is the largest market for multimedia chipsets in Europe. Hybrid set-top boxes containing advanced SoCs are required by broadcasters to deliver content, which is also leading to the growth of the System on Chip (SoC) market thereby boosting the demand of multimedia chipsets market in Europe.
This report also provides an understanding of revenue (USD Billion) of multimedia chipsets market. The study also provides forecast from 2015-2023 and highlights current and future market trends.
By geography, the market has been segmented into North America, Europe, Asia Pacific, the Middle East and Africa and Latin America. This report helps distributors, suppliers and manufacturers to formulate strategies based on understanding of the trends in this market.
The leading players in the Multimedia chipsets market include Realtek Semiconductor Corp., Qualcomm Inc, Advanced Micro Devices Inc, Cirrus Logic Inc., Intel Corp. and NVIDIA Corporation.
Global Multimedia Chipsets Market by Function
Functions covered under this research study are:
- Audio chipsets
- Graphics chipsets
Global Multimedia Chipsets Market by Application
- Digital cable TV
- Set top box and IPTV
- Home media players(audio and video)
- Handheld devices
Global Multimedia Chipsets Market by Geography
- North America
- Asia Pacific
- Middle East and Africa
- Latin America