Multimedia Chipsets Market : Future Forecast Assessed on the basis of how the Market is Predicted to Grow

The multimedia chipsets market is intensely competitive, characterized by the high levels of competition among top players to constantly diversify their offerings in the two primary segments-graphics chipsets and audio chipsets, notes Transparency Market Research (TMR). The markets for both the segments features a fairly consolidated landscape with a vast scope of product differentiation. In the graphics chipsets market, the top three players-Advanced Micro Devices, Inc., NVIDIA, and Intel—held a combinedly whopping share of 98.2% in 2014.

The top three makers of audio chipsets jointly held a substantial share of 69.4% in the same year, finds TMR. These leading players are Realtek Semiconductor Corporation, Qualcomm, and Cirrus Logic, Inc. These players are in constant pursuit of diversifying their products and are focused on developing innovative products for a variety of multimedia applications, in order to consolidate their shares in various regions.

Fueled by low investment required for entering the market, the threat of entry from new players is expected to intensify in the coming years, observes TMR. A number of players are collaborating with various chip makers and forming partnership agreements to bring down the high cost of setting of manufacturing units in the initial years. Competitive pricing and the development of high-performance multimedia chipsets are the key strategies adopted by several players to gain a competitive edge over others.

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Witnessing ample growth opportunities in the gaming industry and accelerating adoption of multimedia chipsets in wearable devices, the global multimedia chipsets market is projected to rise at a CAGR of 6.6% from 2015 to 2023, in terms of revenue. Growing at this pace, the market is predicted to reach a valuation of US$40.99 bn by the end of the forecast period.

Regionally, currently Asia Pacific dominates the global market and is expected to retain its lead throughout the forecast period. The growth is expected to be driven by the substantial and steady demand for hand-held multimedia devices, IPTV, and set top boxes. Based on function, the market is led by the graphics chipsets segment and is predicted to remain so throughout the forecast period, primarily attributed to their growing applications in video streaming functionalities in consumer electronics.

The rapidly rising demand for cost-effective, highly functional hardware in a variety of mobile devices, including smartphones and wearable, is a key factor driving the market. The growing demand for feature-rich multimedia handsets in the areas of gaming and consumer electronics is vastly propelling the demand for advanced multimedia chipsets.

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These chipsets enable marked form factor reductions and high-quality video streaming in various wireless devices. In addition, their architecture enables multitasking on these multimedia devices, thereby bolstering their demand. The coming wave of sophisticated wearable devices and smartphones is a key trend expected to boost the multimedia chipsets market. The rapidly increasing internet penetration in several emerging economies has further accentuated the demand for these electronic devices.

Furthermore, the accelerating demand for chip architecture to support advanced graphics application in the gaming industry is expected to catalyze the growth of the multimedia chipsets market.

The growing prominence of system-on-chip architecture has expedited the market for hardware components to mature faster, calling for increased standardization of hardware components. This further translates into high rate of commoditization. This has led a number of IT product development companies to focus on investing on new system software, rather than in chip making. These factors are likely to hinder the multimedia chipsets market to an extent.

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The global multimedia chipsets market is segmented based on:

Function

Audio chipsets
Graphics chipsets

Application

Digital Cable TV
Set Top Box and IPTV
Home Media Players
Handheld Devices
Others

Region

North America
Europe
Asia Pacific
MEA
LATAM

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