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Report From In-Stat Shows VoIP ICs Gaining Traction
[November 21, 2005]

Report From In-Stat Shows VoIP ICs Gaining Traction

TMCnet Associate Editor
 
A new report by In-Stat, a market research company covering the telecom industry, shows that VoIP integrated circuits (ICs) are continuing to gain traction as VoIP functionality is integrated into Customer Premise Equipment (CPE).
 
The report, "VoIP ICs – Building a Foundation for the Future," shows the overall market for VoIP ICs will grow from $208.7 million in 2004 to $1.3 billion in 2009, as wireless handsets have become the new key market.
 
 

"By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets," said Norm Bogen, In-Stat analyst. "From a revenue perspective, the IP phone sub-segment (wireless and wireline combined) represents the smallest revenue market today, but will be the largest one by 2009."
 
Bogen said the reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets.
 
The report analyzes the various markets for VoIP semiconductors and the major drivers behind each of the markets. Vendor market shares and five-year forecasts for each market segment and the overall market are included. Market analysis includes profiles of 11 major vendors, including Texas Instruments, Broadcom, Mindspeed, Infineon, Octasic, Centillium, Conexant, Atmel, Freescale, PMC Sierra and SyChip.

The report shows that VoIP IC revenue on the infrastructure side is growing more slowly than other segments, given extreme price pressure that begins at the service provider level and filters down through VoIP equipment providers to their silicon providers. It states that Texas Instruments' initial dominance of the VoIP IC market is declining even as TI shipments continue to grow. As the market expands, new fabless players are gaining a stronger foothold.
 
For more information visit www.instat.com.
 
Patrick Barnard is Associate Editor for TMCnet and a columnist covering the telecom industry. To see more of his articles, please visit Patrick Barnard's columnist page.

 

 


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