Digital Signal Processors (DSP) Market Analysis

Global Digital Signal Processor (DSP) Market Overview

Digital Signal Processor (DSP) Market Size was valued at USD 29407.3 million in 2023. The Digital Signal Processor (DSP) industry is projected to grow from USD 25690.3 million in 2024 to USD 46603.5 million by 2032, exhibiting a compound annual growth rate (CAGR) of 7.90% during the forecast period (2024 - 2032).The Increasing demand for cloud-based talent management software and the emergence of social platform, are the key market drivers boosting the growth of the Digital Signal Processor (DSP) market.

Digital Signal Processor (DSP) Market Trends

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  Trends of digital signal processing in automotive

  
  

DSPs are integral to ADAS technologies, which assist drivers and enhance safety on the road. DSPs are used for sensor fusion, processing data from various sensors such as cameras, radar, lidar, and ultrasonic sensors. They enable real-time processing and analysis of sensor data, allowing for object detection, collision avoidance, lane departure warning, and adaptive cruise control. With the advancement toward autonomous driving, DSPs will continue to be critical for processing complex sensor data and enabling real-time decision-making in self-driving vehicles.

DSPs are utilized in automotive infotainment systems to enhance audio and video processing capabilities. They enable features such as surround sound, noise cancellation, voice recognition, and speech synthesis, providing a high-quality audio-visual experience for passengers. DSPs also handle audio compression and decompression algorithms, ensuring efficient storage and playback of audio files in various formats.

DSPs play a role in vehicular communication systems, enabling efficient and reliable communication between vehicles and infrastructure. They process signals for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, facilitating tasks such as collision avoidance, traffic management, and cooperative driving. DSPs are essential for real-time processing and analysis of communication signals, ensuring seamless and secure data exchange in connected vehicles.

DSPs are employed in automotive applications to improve acoustic performance and noise control. They process audio signals to reduce unwanted noise and vibrations, enhancing the audio quality within the vehicle cabin. DSPs can analyze the noise spectrum and generate anti-noise signals to cancel out specific frequencies, resulting in a quieter and more comfortable driving experience.

An example of the application of DSP in the automotive sector can be found in the development of advanced sound systems. Automaker BMW, in collaboration with Harman Kardon, has implemented DSP technology in its vehicles to deliver an immersive audio experience. Their BMW Diamond Surround Sound System utilizes DSP algorithms to optimize audio reproduction, adapt the sound to the vehicle's acoustics, and create a 3D sound experience for passengers.

Digital Signal Processor (DSP) Market Segment Insights

Digital Signal Processor (DSP) Type Insights

Based on Type, the Digital Signal Processor (DSP) Market segmentation includes Generic or Application Processors and Specialized Audio Edge Processor. The Generic or Application Processors segment held the majority share in 2022, contributing around ~72.4% to the market revenue. As the name suggests, An application processor is a subset of the microprocessor. The term "application processor" originated in the cellular sector. It refers to a chip in a mobile device that is used for the primary processing of cellular phones and other smart features. In contrast, background functions such as running the display, processing wireless communications, and managing power drain are handled by chips. Mobile application processors are often systems on a chip (SoC) that include the intellectual property (IP) of one or more processor cores as well as various ancillary activities. Typically, application processors run a mobile operating system environment, which is essentially a specialised RTOS, as well as application software. There are numerous application processor vendors. Nvidia's five-core Tegra CPU, Qualcomm's Snapdragon, and Samsung's Exynos series are among the most well-known. A MediaTek CPU is used in many low-cost smartphones. Non-smartphone mobile devices, such as the Kindle Fire tablet, employ an OMAP (open multi-media applications platform) application processor from Texas Instruments. 

Figure2: Digital Signal Processor (DSP) Market, by Type, 2022 & 2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Digital Signal Processor (DSP) DSP Core Insights

Based on DSP Core, the Digital Signal Processor (DSP) Market segmentation includes Single-core DSPs and Multi-core DSPs. The Multi-core DSPs segment held the majority share in 2022 contributing around ~78.1% to the market revenue. Multi-core DSPS achieve high-performance parallel signal processing. A multi-core digital signal processor contains numerous processing cores on a single chip. These cores collaborate to execute DSP algorithms, giving greater processing power and performance than single-core DSP. The cores in a multi-core DSP can function independently or in collaboration, depending on the architecture and programming model. The utilization of multi-cores in a multi-core DSP provides parallel processing, allowing for the simultaneous execution of numerous tasks or the breakdown of a large task into smaller, more manageable sections.

Digital Signal Processor (DSP) Application Insights

Based on the Application, the Digital Signal Processor (DSP) Market segmentation includes Audio Signal Processing, Video Signal Processing, Security & Safety Systems, Radar & Sonar Applications, and Others. By Application, Audio Signal Processing segment hold the majority market share in 2022 contributing 58.0% of the market share. In the case of audio signal processing the DSP encodes MP3 files and stores them in memory. During playback, the file is read from memory, decoded by the DSP, and transformed back to an analogue signal by the digital-to-analog converter so that it may be broadcast through the speaker system. In a more advanced example, the DSP would handle volume control, equalization, and user interface. Noise cancellation is the most significant and perhaps most widespread application of DSP. To improve the audio experience, digital signal processing combined with external microphones on the audio device filters out the noise around the users. Apple employs DSP to accomplish the inverse. Transparency Mode, as the tech giant refers to this function, employs the same microphones to enhance rather than wipe out sound, allowing users to hear their surroundings more clearly.

Digital Signal Processor (DSP) End User Insights

Based on the End User, the Digital Signal Processor (DSP) Market segmentation includes Consumer Electronics, Automotive, Healthcare, Military, Telecommunication, and Others. By End User, the Telecommunication segment holds the majority of the market share in 2022 contributing around 34.9%. DSP is important in communications infrastructure such as base stations, wireless communication systems, network switches, voice-over IP systems, and digital modems. This decade's cellular telecommunications boom has been a driving force in the technical progress of Digital Signal Processors (DSP). This ongoing improvement is driven by the increasing complexity of signal-processing algorithms as well as market-required product features. Indeed, both the rapid expansion of telecommunication standards (to improve communication quality, network capacity, and new services) and the new features appearing on terminals are boosting the demand for digital signal processing algorithms. More complex DSP architectures had to be created in order to implement these algorithms in real-time applications. Furthermore, particularly in mobile telephony, there is a continuing need to reduce DSP power consumption and cost.

Digital Signal Processor (DSP) End Users Insights

Based on the End Users, the Digital Signal Processor (DSP) Market segmentation includes Public Sector and Private/Independent Power Producers. By End Users, the Public sector segment holds the majority of the market share in 2022. The public sector plays a crucial role in the Digital Signal Processor (DSP) Market as it sets policies, regulations, and initiatives to promote the adoption and growth of renewable energy sources. Public sector entities include government agencies, regulatory bodies, and public utilities that influence the development and operation of renewable energy projects.

Government agencies are responsible for formulating renewable energy policies, providing incentives, and creating a favorable regulatory framework. They establish targets for renewable energy deployment, offer financial support through grants and subsidies, and facilitate the integration of renewable energy into the existing energy infrastructure.

Digital Signal Processor (DSP) Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In terms of revenue, Asia-Pacific held the largest share of 33.9% in the Digital Signal Processor (DSP) market in 2022 and is expected to maintain its dominance during the forecast period. The Asia-Pacific Digital Signal Processor market is expected to grow rapidly over the forecast period. The region is a large market for electronic manufacturing, and the increasing usage of digital signal processors in the electronics sector is expected to drive market growth. Smartphones are in high demand in countries such as India, China, Japan, and South Korea, prompting several suppliers to develop manufacturing operations in the region.

Furthermore, the China Digital Signal Processor market held the greatest market share, while the India Digital Signal Processor market was the Asia-Pacific region's fastest-growing market. Leading market companies in Asia Pacific are investing heavily in R&D to diversify their product portfolios, which will drive further market expansion for Digital Signal processors in this region With substantial industry changes such as new product releases, contractual agreements, mergers, and acquisitions, higher investments, and collaboration with other organizations, market developments are also implementing numerous strategic initiatives to grow their footprint. Digital Signal Processor sector competitors are supplying affordable products to expand and remain competitive in a market that is growing increasingly competitive.

Figure3: DIGITAL SIGNAL PROCESSOR (DSP) MARKET SIZE BY REGION 2022 & 2032

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Rising demand from the automotive and aerospace and defense sectors is propelling the market in the United States of America ahead. In 2021, over 3.5 million passenger automobiles were sold in the United States. Total passenger automobile sales in the United States are expected to exceed 15 million by the end of 2033. This increase in car production and sales will benefit the digital signal processor business in the United States of America.

The growth is due to an increase in demand for DSP software among marketers in the United Kingdom, Germany, and France. According to Zenith, programmatic ad expenditure in Central and Eastern Europe (C&E Europe) will rise considerably between 2021 and 2024. Furthermore, the Germany Digital Signal Processor market had the greatest market share, while the United Kingdom Digital Signal Processor market was the fastest expanding in the European Region.

Digital Signal Processor (DSP) Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Digital Signal Processor (DSP) market is highly competitive and dominated by established, pure-play vendors. Over 30 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies to make business more effective. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Digital Signal Processor (DSP) market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Texas Instrument Incorporated, Analog Devices Inc., NXP Semiconductors, Infineon Technologies AG, Broadcom Inc., STMicroelectronics, ONsemi, Asahi Kasei Corporation, Qualcomm Technologies Inc., Knowless electronics LLC, Cirrus Logic, Inc., ROHM Company Ltd., Renesas Electronics Corp., Skyworks Solutions Inc., Rockwell Automation Inc., Xilinx Inc., Waytronic, Intel Corporation., and NVIDIA Corporation. Texas Instruments Incorporated works on exciting technology which helps customers innovate to create a better world. The company aims to maximize free cash per share growth has three elements. The company’s business model focused on analog and embedded processing products and is built around four sustainable competitive advantages. The company is disciplined in allocating capital to the best opportunities focused case on efficiency.

The Digital Signal Processor (DSP) Market is a consolidated market due to increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Digital Signal Processor (DSP) market include

• Texas Instrument Incorporated


• Analog Devices Inc.


• NXP Semiconductors


• Infineon Technologies AG


• Broadcom Inc.


• STMicroelectronics


• ONsemi


• Asahi Kasei Corporation


• Qualcomm Technologies Inc.


• Knowless electronics LLC


• Cirrus Logic, Inc.


• ROHM Company Ltd.


• Renesas Electronics Corp.


• Skyworks Solutions Inc.


• Rockwell Automation Inc.


• Xilinx Inc.


• Waytronic


• Intel Corporation


• NVIDIA Corporation

Digital Signal Processor (DSP) Industry Developments

• In October 2022, Broadcom Inc., expanded its silicon, software, and hardware storage access products to provide improved performance, capabilities, and power. This enlarged product line is the outcome of multigenerational investments aimed at assisting hyperscale data centres in managing and maintaining the storage connectivity required to enable video storage at scale.


• In January 2022, A new line of 28 nm microcontrollers (MCUs) called AURIX TC4x was unveiled by Infineon Technologies AG for applications in eMobility, ADAS, automotive E/E systems, and low-cost AI. Next-generation TriCore 1.8 and scalable performance enhancements from the AURIX accelerator family are included in the new AURIX TC4x series. This is made up of the cutting-edge parallel processing unit (PPU), a SIMD vector digital signal processor that meets the requirements of various AI topologies.

Digital Signal Processor (DSP) Market Segmentation:

Digital Signal Processor (DSP) Type Outlook

• Generic or Application Processors 


• Specialized Audio Edge Processor 

Digital Signal Processor (DSP) Category Outlook

• Fixed Point Processors 


• Floating Point Processors 

Digital Signal Processor (DSP) DSP Core Outlook

• Single-core DSPs 


• Multi-core DSPs 

Digital Signal Processor (DSP) Application Outlook

• Audio Signal Processing 


• Video Signal Processing 


• Security & Safety Systems 


• Radar & Sonar Applications 


• Others 

Digital Signal Processor (DSP) Industry Outlook

• Consumer Electronics


• Automotive


• Healthcare


• Military


• Telecommunication


• Others

Digital Signal Processor (DSP) Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Rest of Asia Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • GCC Countries
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Chile
  
  
  • Rest of South America