The digital signal processors market is projected to grow at a CAGR of 7.36% during the forecast period to reach US$19.429 billion by 2026, from US$11.818 billion in 2019, reported ResearchAndMarkets.com.
A digital signal processor, commonly known as a DSP, is a specialized microprocessor that has the capability to process digital data by mathematical manipulation to process, analyze, and interpret the data contained in them. DSP process the given data in real-time, having high data throughput, provide desirable and accurate performance, ensure repeatability, and can be reprogrammable using the software.
The prime reason driving the market growth is increasing usage across several industry verticals owing to the booming demand for processors. Increasing disposable income coupled with rising usage of smart devices has significantly surged usage of DSP, contributing significantly towards the market growth. However, high power consumption acts as an impediment to the market. Nevertheless, innovation in the industry is anticipated to increase new opportunities for the market and tap new growth prospects.
Booming growth in the consumer electronics segment is projected to increase the market growth prospects for digital signal processors during the forecasted period.
One of the prime industries that are expected to contribute significantly toward the market escalation of digital signal processors is consumer electronics. Certain consumer electronics have become a necessity for the world and have witnessed a significant surge in users. BankMyCell reports that the number of mobile phone users globally has surged significantly from 4.30 billion users in 2016 to 4.88 billion users in 2021.
The rise in disposable income, advanced product launches, and fall in the price of basic mobile devices are prime growth factors. Within the mobile phone industry, a large portion of consumers in the market use smartphones. The number of smartphones increased from 2.5 billion in 2016 to 3.8 billion in 2021. This number is further anticipated to increase in the future. Mobile devices are the key employer of digital signal processors, and their growth is expected to surge the market size for DSPs. Furthermore, technological advancement in the industry is predicted to open up new growth prospects.
An increase in the number of other smart devices, such as smart TVs, smartwatches, and smart Tablets is also projected to showcase lucrative growth potential. With an increased standard of living and preference towards a tech-savvy lifestyle, consumers are increasing usage of these devices that supports the market growth.
The automotive, aerospace, and defense sectors as well are projected to show promising market growth for digital signal processors owing to robust demand and rise in DSPs application.
Based on industry verticals, automotive, aerospace, and defense industries are projected to show a promising growth rate in the digital signal processors market during the forecasted period. robust growth in demand coupled with an increase in market adoption of DSPs is expected to increase the market scope. Manufacturing of automotive has a stable market while that of aerospace and defense is growing at a noteworthy rate. Data from International Organization for Motor Vehicle manufacturers shows stable production of motor vehicles around the world, with fluctuation with respect to other factors. However, data from the World Bank database shows that tourism has been increasing at a significant rate that supports the aviation industry’s demand for aero-vehicles and drives demand for DSPs. Lucrative growth in these industries is expected to support the market for digital signal processors.
The Asia Pacific and North American regions are predicted to hold dominating share in the market. North America DSP market is projected to grow at a significant rate while the Asia Pacific DSP market is expected to grow at the fastest rate during the forecasted period.
Based on geography, the digital signal processor market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific regions. The North American region is projected to grow at a significant rate during the forecasted period owing to the rise in automation, aerospace, and defense, and automotive industries. Furthermore, the early adoption of technology also plays a significant role in market adoption.
The Asia Pacific region, on the other hand, is projected to grow at the fastest rate. Rapid industrialization in China, South Korea, India, Vietnam, Singapore, Indonesia, and others have mushroomed manufacturing units in the country, especially for automotive, consumer electronics, and healthcare industries, that have created robust demand for digital signal processors. Furthermore, growing disposable income has surged the demand for consumer electronics to a notable level, which is expected to support the market prospects.
