Our-in depth analysis of the global digital signal processor market includes the following segments:
By Number of Cores
By End-User Industry
Global digital signal processor market is further classified on the basis of region as follows:
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The digital signal processor market, in terms of value, is estimated around USD 9.8 Billion in 2017 and expected to grow rapidly during the forecasted period at a CAGR of around 8.7%. Digital signal processor is preferred over analog signal processers as they can carry out heavy mathematical computations. Digital signal processors (DSP) are very quick in processing information and can use that information for use in numerous applications.
North America holds the largest market share in terms of revenue due to the major use of digital signal processor in healthcare, automotive, and consumer electronics. Significant investment in research, production and development of digital signal processor leads to the growth of digital signal processor market in this region. Advancement in electronics and semiconductor companies which developed low cost hardware equipped with advance features and capabilities contributed to the growth of digital signal market.
Asia Pacific is anticipated to be the fast growing market of digital signal processors. Asia Pacific is the leading market for electronics manufacturing and wide use of digital signal processors in electronics industry expected to foster the growth of Asia Pacific digital signal processors market. In this region, a skilled labor at lower cost is easily available which results to the high production of digital signal processor. Europe is expected to show a lucrative growth during the forecasted period due to the high demand for electronics product which directly results in the growth of digital signal processor market in this region.
Digital signal processor is highly efficient and has low cost. Due to the low cost of digital signal processor they are also being used in low cost electronic devices. These are the factors which are anticipated to drive the growth of digital signal processors market during the forecasted period. Next generation technologies such as big data and Internet of Things combined with innovative computing algorithms is projected to create huge opportunities for digital signal processors market.
Technological advancement and developments in wireless infrastructure are also the major factors which are driving the growth of digital signal processor market globally. Raise in data traffic and use of internet protocol (IP) cameras for video surveillance also increasing the demand for digital signal processors. Due to the lower cost of digital signal processor they are preferred to build high performance communication systems. In IoT, digital signal processor is used for low data rate LTE and LPWAN standards to ensure flexibility and low power to support multiple standards in a single device. Digital signal processors with vision processing capabilities are widely used in automotive industry for object detection and recognition purposes. Digital signal processor market faces some challenges such as lake of skilled labor and complexity with designing and programming the complex architecture of digital signal processors. Designing low cost digital signal processors is a tough task for engineers as they have to maintain the balance between performance and cost.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh