With packet voice being the future of voice communications, In-Stat/MDR expects Voice over Internet Protocol (VoIP) equipment and VoIP Integrated Circuits (ICs), to see strong growth rates over the next five years. Although the market for VoIP equipment and component level devices is still at an early stage, and shipment volumes for traditional, circuit-switched equipment will outstrip VoIP shipments by an order of magnitude over the next several years, the high-tech market research firm projects that VoIP IC revenue will rise from $54.9 million in 2002, to $141.1 million in 2007.
In-Stat/MDR classifies VoIP ICs into three key segments: IP Phone ICs, Customer Premise Equipment (CPE) VoIP gateway ICs, and infrastructure VoIP gateway ICs. In-Stat/MDR found the following with regards to each segment:
- IP Phone ICs are becoming increasingly integrated and specialized, with three port Ethernet switches, integrated PHYs, and security processors becoming increasingly common. Cellular/WLAN functionality will be bundled with IP Phone ICs in the near future. IP Phone IC revenues will grow from $15.6 million in 2002 to $49.6 million in 2007, for a 26.0% CAGR.
- CPE VoIP gateway ICs are, currently, used most in "two-box" deployments in residential IP Telephony, with a separate Analog Terminal Adapter (ATA) attached to a broadband modem. While there are many good reasons for this model, over the forecast period, a "one-box" model, with VoIP integrated directly into a Residential Gateway (RG) will become the prime form factor for residential deployments. Overall, CPE VoIP gateway revenues are expected to rise from $21.1 million in 2002 to $55.1 million in 2007, for a 21.2% CAGR.
- The infrastructure VoIP gateway (commonly referred to as a "media gateway") market experienced a steep decline in 2001 and most of 2002, due to dramatically lowered telecom capex spending. However, this market has picked up, particularly in the Asia-Pac region, and is now experiencing solid growth. Consequently, the market for infrastructure VoIP gateway ICs will rise from $18.2 million in 2002 to $36.4 million in 2007, for a 14.8% CAGR.
- Texas Instruments (TI) currently dominates the VoIP IC market, representing roughly 80.0% of the total shipment volume for each of the three key segments.