Satellite set top boxes continue to be the largest market for H.264 decoder ICs. In addition more and more DTVs are using H.264 decoder ICs rather than only MPEG-2. As a result In-Stat expects H.264 decoder ICs to grow at an annual rate in excess of 20% through 2013.
“Advanced compression, such as H.264, is becoming increasingly popular due to its lower bit rate and smaller file size that especially helps networked video solutions,” says Michelle Abraham, Principal Analyst. “The proliferation of video applications, such as user generated content and online video streaming, embedded DVRs and mobile video are serving to increase demand for low cost, high-quality encoders.”
Source: press release.