In-Stat/MDR reports digital video to spur MPEG chip growth - ST and ESS top of the market - Market Intelligence - Motion Picture Experts Group, ST Microelectronics and ESS Technology - Brief Article

Mobile Internet, The, July, 2002

After a hiccup in 2001, the Motion Picture Experts Group (MPEG) video chip market will continue to grow through 2006, according to In-Stat/MDR (http://www.instat.com). The market research firm reports that, spurred by the proliferation of digital video, the entire MPEG video chip merchant market will triple in revenue from 2001 to 2006.

"Currently, the different segments of this market are in various stages of the life cycle," said Michelle Abraham, a senior analyst with In-Stat/MDR. "For example, MPEG-l Decoders are holding steady while MPEG-2 Decoders for SVCD are declining. However, the markets on the way up (MPEG-2 Encoders, MPEG-2 Decoders and MPEG-4 codecs) will more than make up for those on the way down."

In-Stat/MDR has also found that:

- The MPEG video chip merchant market is expected to reach $3.3 billion and 272 million units in 2006 up from $1 billion and 112 million units in 2001. During this period, the overall composition of the market will change. The HD MPEG-2 Decoder, MPEG-4, and MPEG-2 Encoder segments will grow as a percentage of the total while all other segments decline.

- With regards to MPEG chip market share in 2001, ST Microelectronics was first in revenue with $392 million or 33 percent for the fourth year in a row. ESS Technology came in first in unit shipments with 34 million for 31 percent share. LSI Logic was second in both categories. These three companies account for over 70 percent of the MPEG video chip market.

The report, Ups and Downs in MPEG Video Chips (IN02001 lMI), discusses nine MPEG video chip segments, providing market shares of major players, supplying information on competitors, and offering unit, ASP, and revenue forecasts for each segment.

To purchase this report, or for more information, please visit: http://www.instat.com/ catalog/cat-mi.htm or contact Courtney McEuen at 916/984-1179; cmceuen@instat.com. The report price is US$2,495.