Multimedia Chipset Market - Size, Industry Share, Growth Trends and Forecasts (2023 - 2031)

By Type :

Based on the type, the market is segmented into audio chipset, graphics chipset, and others. The audio chipset segment accounted for the largest revenue share of 47.09% in the year 2022. Audio chipset refers to an integrated circuit designed for producing audio signals through analog, digital, or mixed-mode electronics. Audio chipsets are typically fabricated on metal–oxide–semiconductor mixed-signal chips that process audio signals. Moreover, audio chipset offers a range of features including improved audio clarity, white noise reduction, multiple audio inputs, realistic audio effects, enhanced audio editing, and others. The aforementioned benefits of audio chipsets are driving its utilization in consumer electronics and automotive industries among others.

In October 2023, Qualcomm introduced its new Qualcomm S7 and S7 Pro Gen 1 audio chipsets integrated with active noise cancellation performance. The audio chips are optimized to provide high-performance, low power compute, and advanced connectivity to deliver enhanced audio experience. Thus, rising innovation associated with audio chipsets is among the prime factors driving the growth of the market.

The graphics chipset segment is anticipated to register fastest CAGR growth during the forecast period. A graphics chipset refers to the build of the circuit board that is designed to power a graphics card, which is a device inside a computer that interprets graphics signals from the motherboard. Graphics chipset is responsible for sending visuals to the computer monitor.

In August 2023, Advanced Micro Devices Inc. introduced its new AMD Radeon RX 7800 XT and Radeon RX 7700 XT models of graphics cards that are designed to deliver high-performance and high-refresh gaming experiences. Therefore, the rising advancements related to graphics cards are anticipated to increase the market demand for graphics chipsets, in turn driving the market growth during the forecast period.

By Application :

Based on the application, the market is segregated into digital TV, media players, gaming consoles, smartphones, tablets, wearable devices, infotainment system, and others. The digital TV segment accounted for the largest revenue share in the year 2022. Multimedia chipsets are primarily used in digital TV to automatically fine-tune picture quality settings for providing enhanced entertainment experiences.

For instance, MediaTek Inc. is a manufacturer of multimedia chipsets that offers a wide range of multimedia chips including MT9638, MT5592, MT5597, and others for application in digital TVs. The chipsets are optimized to provide faster refresh rates and incorporate a suite of advanced features to enhance user experience. Therefore, the increasing innovations associated with multimedia chipsets for application in digital TV is a prime factor proliferating the growth of the market.

The infotainment system segment is anticipated to register fastest CAGR growth during the forecast period. Multimedia chipsets are used in automotive infotainment systems for providing multimedia processing and highly flexible audio/video interface for enhanced driving experience.

For instance, in April 2023, MediaTek announced its plan to introduce Dimensity Auto components for actively engaging in innovative R&D to offer reliable automotive-grade chipsets and components for utilization in automotive cockpit and infotainment system among others. Thus, the increasing advancements related to multimedia chipsets for use in automotive infotainment system is a key factor projected to drive the growth of the segment during the forecast period.

By End-User :

Based on the end-user, the market is segregated into consumer electronics, automotive, media & entertainment, IT & telecommunication, and others. The media & entertainment segment accounted for the largest revenue share in the year 2022. Factors including the rising investments in media and entertainment sector, increasing consumer shift towards digital content for entertainment activities, and growing demand for VOD (video-on-demand) content are among the key prospects driving the growth of the media & entertainment segment.

For instance, according to European Audio-Visual Observatory, VOD (video-on-demand) sector in Europe was valued at USD 13.2 billion in 2020, and its growth was primarily driven by the rapid shift in consumer preference towards content that is accessible at any time, any place, and any device. Thus, the growth of media & entertainment sector is driving the adoption of multimedia chipsets for applications including high-resolution image editing processes, video rendering, and others, in turn proliferating the growth of the market.

Consumer electronics segment is expected to witness fastest CAGR growth during the forecast period. The growth of consumer electronics segment is primarily driven by multiple factors including technological advancements including AI (Artificial Intelligence) and IoT (Internet of Things), growing penetration of tablets, smartphones, and other consumer devices, and rising popularity of wearable devices among others.

For instance, in December 2021, Qualcomm Technologies Inc. launched its Snapdragon G3x Gen 1 chipset that is primarily designed to deliver improved gaming performance on all Android games, stream games from gaming console or PC, and play content from cloud gaming libraries among others. Thus, the rising development of multimedia chipsets for utilization in consumer electronic devices is projected to drive the market growth during the forecast period.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America is estimated to reach over USD 20,870.08 Million by 2031 from a value of USD 11,759.31 Million in 2022 and is projected to grow by USD 12,288.01 Million in 2023.

The market growth for multimedia chipset in the North American region is mainly driven by its deployment in media & entertainment, automotive, consumer electronics, and other industries. Moreover, the rising deployment of multimedia chipsets in media & entertainment industry to enable improved efficiency at all stages of media workflows including management, production, processing, delivery, and others has been a prevalent factor for market growth in the region.

For instance, according to the Motion Picture Association, the entertainment industry in the United States was valued at USD 32.3 billion in 2021, depicting a growth of 7% in comparison to 2020. The above factors are stimulating the market growth in North America. Furthermore, factors including increasing investments in consumer electronics and automotive sectors are projected to drive the market growth in North America during the forecast period.

Asia-Pacific is expected to grow with the highest CAGR growth of 7.2% and is estimated to reach over USD 15,453.37 Million by 2031 from a value of USD 8,449.68 Million in 2022 and is projected to grow by USD 8,852.17 Million in 2023. In addition, in the region, the China accounted for the maximum revenue share of 35.92%in the same year.

The growing pace of industrialization and development is providing lucrative growth prospects for the market in the region. In addition, factors including the growth of various industries including consumer electronics, IT & telecommunication, media & entertainment, and others are driving the market growth for multimedia chipset in the Asia-Pacific region.

For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, and it is anticipated to grow at a substantial rate to reach USD 21.18 billion by 2025. Multimedia chipsets are usually integrated in consumer electronic devices for delivering enhanced audio quality and ultra-high video resolution with faster data transmission. Hence, the growing consumer electronics sector is driving the application of multimedia chipsets for application in smartphones, tablets, gaming consoles, television, and other related consumer devices, thereby, boosting the market growth in the Asia-Pacific region.