In-Stat/MDR Reports Embedded Microprocessor Market to Experience Growth After Dismal 2001

Business Wire, Oct 22, 2002

Business Editors & High-Tech Writers

SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Oct. 22, 2002

After a dismal 2001, which saw revenues decline by more than 33%, the market for processors embedded in cell-based, semi-custom, Application-Specific ICs (ASICs) will experience positive growth this year, according to In-Stat/MDR (http://www.instat.com). The high-tech market research firm reports that the market will return to more normal levels by 2003, and is forecast to reach $8,628.6 million by 2006, experiencing a Compound Annual Growth Rate (CAGR) of 17.3% between 2001 and 2006.

The embedded microprocessor represents the second largest function, on a product dollar basis, to be embedded in cell-based, customer-specific, semi-custom designs, with first place going to the static RAM. Unlike the standard processor, its embedded cousin is a licensed Intellectual Property (IP) core, which is available from a wide variety of suppliers, with most architectures tailored to specific applications. Embedded processor technology, like many other functions, will find use in the Application-Specific Standard Product (ASSP) applications, as well as in customer-specific product designs. "Embedded processor technology," according to Jerry Worchel, a senior analyst with In-Stat/MDR, "represents the single most important function relative to next-generation product technology development."

In-Stat/MDR has also found that:

-- The most commonly embedded processor core will be the ARM architecture, which, product shipment wise, will account for almost two out of every three dollars. Other major embedded processor architectures include MIPS, ARC, and PowerPC, with the PowerPC sustaining the highest percentage revenue growth through 2006.

-- The communications segment will accounting for nearly three out of every four product dollars consumed through 2006.

-- On the geographic side, it will be The Americas, followed by Europe, which will dominate future product consumption, accounting for an average of 70% product dollar consumption through 2006.

-- Like market revenue, design starts using embedded processors took a major hit last year, declining by over 30% from the prior year. Unfortunately, with the economy still being unstable, return to growth isn't forecast until 2003, and even then, it will be moderate, staying under 10%.

The report, "Embedded Microprocessors: The Real ASIC Digital Engines" (#IN020475DE), presents a detailed analysis of the cell-based, customer-specific embedded microprocessor (processor) market. End-use consumption of products designed using this technology is examined in detail by major end-use market; Electronic Data Processing (EDP), communications, consumer, industrial, military and automotive, as well as by major second-level end-use application, such as networks, basestations, servers, et cetera. Geographic consumption for each of the four major regions, The Americas, Europe, Japan and Asia Pacific is also explored, as are processor architecture, operating voltage, packaging and mixed-signal trends. Two other areas analyzed in this report relate to the companies that would utilize embedded processor technology in future high-level designs, as well as who are the suppliers, or to be more correct, the licensees of processor cores, be they soft or hard.

To purchase this report, or for more information, please visit: http://www.instat.com/catalog/cat-de.htm or contact Frank Dickson at fdickson@reedbusiness.com; 480/609-4467. The report is priced at $2,995.

In-Stat/MDR (http://www.instat.com) offers a broad range of information resources and analytical assets to technology vendors, service providers, technology professionals, and market specialists worldwide. The company stands alone in its ability to integrate both supply-side and demand-side research methodologies into a single comprehensive view of technology markets and products. This capability relies on a unique ability to cover the entire value chain from engineering-level technology, through equipment, infrastructure, services and end users.

In-Stat/MDR is part of the Reed Electronics Group, a division of Reed Elsevier (www.reedelsevier.com), a world-leading publisher and information provider. With over 38,000 employees worldwide, Reed Elsevier operates in the science & medical, legal, education and business-to-business industry sectors, providing high value and flexible information solutions to professional end users, with increasing emphasis on the Internet.