Enthusiasm is still building around the nascent MPEG-4 AVC market, but the use of advanced video decoders does not mean that MPEG-2-only decoders will disappear from the market soon, reports In-Stat. In fact, MPEG-2 unit shipments are expected to experience growth until 2009, though declining ASPs for MPEG-2 solutions will cause revenues to decline.
The worldwide MPEG Video IC market revenues for 2004 were $3.8 bln. MPEG-4 Video ICs will appear in more and more mobile handsets as mobile video delivery systems based on standards like DVB-H and DMB are deployed around the world. In the MPEG-2 consumer encoder IC market, NEC Electronics had the top unit share in 2004 for the second year in a row, mainly due to its design wins in DVD recorders. STMicroelectronics had the highest MPEG Video IC revenue again in 2004, for the fifth straight year.