Market Trends of Global DSP Industry
This section covers the major market trends shaping the Digital Signal Processor Market according to our research experts:
Growing Applications in Automotive Industry
- Digital signal processors find widespread usage in the automotive sector for manufacturing vehicle surveillance equipment and vehicle parts. Location-based service vendors use these processors for remote diagnostic systems, alignment systems, and intelligent transportation systems to fine-tune engine performance, track vehicles, and control traffic flow.
- Digital signal processors are often used in in-cabin infotainment systems and in control systems, which have demanding signal-processing performance needs. These processors involve specialized features such as high memory bandwidth, fast multiply-accumulate hardware, and instructions that combine multiple operations.
- Further, an increase in the requirement for safety boosts the usage of digital signal processor-controlled braking, collision avoidance systems, and airbags in vehicles. Thus, contributing to the growth of the market.
- The automotive industry has faced the brunt of the pandemic, with an exponential decline in demand for passenger vehicles and investments. According to the data published by OICA, in 2020, the number of passenger cars sold across the world stood at 53.9 million, which was 64.0 million during the previous year. However, the industry has been witnessing a positive growth trend since 2021.
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APAC to Register Highest CAGR in Market During Forecast Period
- The digital signal processor market in the Asia-Pacific region is expected to increase rapidly during the forecast period. The region is a major market for electronics manufacturing and extensive usage of digital signal processors in the electronics industry, which is expected to fuel the growth of the digital signal processor market in the region.
- Significant demand for smartphones from countries such as India, China, Japan, and South Korea, are encouraging many vendors to set up production facilities in the region. The availability of raw materials and the low establishment and labor costs have also motivated companies to establish their regional production centers. Along with manufacturing benefits, the strong demand and rapid growth are also influencing mobile phone companies to set up their production facilities in the Asia Pacific. Expanding mobile phone companies in the region are further anticipated to drive the demand for digital signal processors and strengthen regional market growth.
- India has a large consumer base for mobile phones; hence the production of mobile handsets is further slated to increase in value from USD 30 million in FY 21 to USD 126 million in FY 26, as stated by Invest in India, the National Investment Promotion and Facilitation Agency of the Government of India.
- China is a global leader in automotive production, and the growing investments and expansions in the sector in developing the next-generation vehicles are contributing to the market growth. In August 2021, Honda motor announced plans to ramp up its capacity to build electric cars and other new-energy vehicles in China. Honda will invest around 3 billion yuan through a joint venture to expand an existing factory in Guangzhou.
- Thus, owing to the aforementioned factors, the revenue share from Asia-Pacific is anticipated to grow faster than the other geographical regions during the forecast period.
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