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VoIP IC market to grow fivefold by 2009

VoIP ICs continue to gain traction as VoIP functionality is integrated into Customer Premise Equipment (CPE) includ...

November 21, 2005  

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VoIP ICs continue to gain traction as VoIP functionality is integrated into Customer Premise Equipment (CPE) including modems, routers and residential gateways, reports In-Stat.

The overall market for VoIP integrated circuits (Ics) will grow from US$208.7 million in 2004 to US$1.3 billion in 2009, the high-tech market research firm says. Over the next few years, wireless handsets will become another key market for VoIP ICs.

“By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets,” said Norm Bogen, an 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. This reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets.”

A recent report by In-Stat found 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.

* 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.

* VoIP equipment providers look to VoIP IC companies to assist in developing the best quality, most cost-effective and power-efficient products. Thus, an understanding of the future market for VoIP ICs must begin by examining various end-user markets.

The report, VoIP ICs–Building a Foundation for the Future, includes VoIP IC forecasts for port and unit shipments and revenue by region for each market segment — phone, CPE, and infrastructure.

It also includes vendor market shares for each of these segments as well as the total VoIP IC market. Market analysis includes profiles of 11 major vendors.