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Tuesday, January 04, 2005
DVD Player Semiconductor Revenue Expected to Plunge While DVD Recorder Semiconductor Revenue Will Surge


A new IDC study finds that DVD player semiconductor revenue is expected to experience a compound annual growth rate (CAGR) of -21% between 2004 and 2008, with revenue declining to $637.8 million in 2008, while DVD recorder semiconductor revenue is expected to achieve a CAGR of 39.1% and reach $3 billion in 2008.

The study also found that overall DVD semiconductor revenue will grow from $2.4 billion to $3.7 billion, and that DVD recorder semiconductors will be the dominant market force.

"Total DVD semiconductor revenue will grow steadily through the forecast period of 2004-2008, with a notable decline in DVD player semiconductor revenue and a significant ramp in DVD recorder semiconductor revenue. DVD recorder semiconductor revenue will drive and support the DVD semiconductor revenue through this forecast period, while offering both significant opportunity and risk to industry participants," said IdaRose Sylvester, senior research analyst, Semiconductors.

Additional key trends identified for the DVD player and DVD recorder semiconductor market from this study include:

  • Integration is the leading trend, and leading cost reduction driver, in IDC's forecast for the DVD industry.
  • DVD recorder volume will gain significant momentum and DVD player volume will begin a rapid decline.
  • DVD player systems are almost maxed out on semiconductor integration, but DVD recorder semiconductor integration is just starting.
  • Due to the complexity of DVD recorder systems, semiconductor BOM costs will remain relatively high throughout the forecast period.
  • Regional variations in end market demands will pose strategic challenges for DVD recorder semiconductor companies.

This IDC market analysis entitled, Worldwide DVD Player and Recorder Semiconductor 2004-2008 Forecast and Analysis (IDC #32608), examines all semiconductor products that go into DVD players and recorders, and forecasts the 2004-2008 worldwide revenue and bill of materials costs for this market. The forecast information is split between player and recorder technology, and by semiconductor type.

From IDC



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