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PMP Market Set for Boom as CE Growth Slows

Fri, Apr 27, 2007

Industry News

PMP Growth

We have brought you some of these numbers about a month ago, but I don’t mind updating some fresh stats with good news (it also gives me an excuse to play around with making silly graphs in Photoshop). Of course this is something we hoped to hear, and were pretty sure it will stay true, PMP market is growing and expanding, even while some of the other markets aren’t seeing the same kind of growth.

Here’s how Chelsey Drysdale from Circuits Assembly summed it up:

While growth in the overall consumer electronics equipment and related semiconductor markets is undergoing a slowdown, analysts at iSuppli Corp. say there is hope for more profitability for personal media players/MP3 players.

The OEM factory revenue CAGR for consumer electronics products will decelerate to 3.6% from 2007 to 2011, down from 8.9% between 2001 and 2006, the firm said. The CAGR for the consumer electronics-oriented semiconductor market will slow to 4.4% for the period between 2007 and 2011, down from 10.7% from 2001 through 2006.

Worldwide consumer-electronics product OEM factory revenue will rise to $393.4 billion in 2011, up from $349.9 billion in 2007. Associated semiconductor revenue will increase to $69.1 billion in 2011, up from $58.1 billion in 2007, according to iSuppli.

Read on after the break about some good stats for the PMP market…
Despite the overall slowdown, mobile products are generating strong growth, with PMP/MP3 players leading the way, said the firm.
Global PMP/MP3 player unit shipments will rise to 268.6 million units in 2011, expanding at a CAGR of 13% from 128.7 million units in 2005, the company predicted. Global PMP/MP3 factory revenue will rise to $21.5 billion by 2011, growing at a CAGR of 7.4% from $14 billion in 2005.
According to the firm, the strong growth of the PMP/MP3 market is the result of increased Internet connectivity, growing content availability and declining prices for key components like NAND flash memory and system-on-chip (SoC) controllers.
iSuppli warned that PMPs/MP3s face rising competitive pressure from mobile phones, which are adopting music-playback. In 2007, music-enabled mobile phones will out-ship PMP/MP3 players by a factor of nearly 3:1, and by 2011, that gap will expand to 4.5:1, the firm said.

[via iSuppli / Circuits Assembly]

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