The production value of the global TV chip business is expected to grow about 9 percent next year due to the increasing adoption of technology, such as wireless video connections and networking interfaces, market information advisory firm IC Insights said on Friday.
IC Insights said the new applications were especially popular among younger, tech-savvy consumers, who tend to watch TV shows through the Internet on their mobile devices.
The firm said the introduction of multi-format decoders and light-emitting diode (LED) backlighting was also likely to boost demand for TV chips at a time when growth in the global digital and analog TV market is slowing.
According to IC Insights, the output value of the world’s TV chip business is expected to total US$14.6 billion next year from an estimated US$13.4 billion this year, which would be 12 percent higher than last year.
The firm has forecast that shipments of digital and analog TVs this year will total 236 million units, up only 1.2 percent from a year earlier.
A digital TV upgrade cycle remains in full swing in emerging markets, such as China, Russia and India, which is expected to offset the impact of slowing growth in Japan, Western Europe and North America, the firm said.
IC Insights said TV vendors were now searching for new engines of growth in TV sales, with smart TVs gaining popularity because they can connect to the Internet.