VoIP Chip Market To Rocket 600% By 2009

The market for VoIP integrated circuits will grow from almost $209 million last year to $1.3 billion in 2009, with wireless handsets a key use, In-Stat says.

The voice over IP (VoIP) integrated circuit market has continued to grow as increasing numbers of vendors integrate VoIP features in customer premise equipment.

According to In-Stat, the VoIP IC market will expand more than 600% from $208.7 million last year to $1.3 billion in 2009. Though revenues from VoIP IC sales have grown slowly on the infrastructure side, due to what the firm describes as "extreme price pressure," In-Stat expects wireless handsets to emerge as a key market for the chips over the next few years.

"By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets," In-Stat analyst Norm Bogen said in a statement. "From a revenue perspective, the IP Phone sub-segment (wireless and wireline combined) represents the smallest revenue market today, but will be the largest one by 2009. This reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets."

Once-dominant VoIP IC maker Texas Instruments has seen its market share slip, despite increases in units shipped. According to In-Stat, vendors without production facilities are finding themselves in increasingly stronger positions to take advantage of the market.

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