According to In-Stat, the VoIP IC market will expand more than 600% from $208.7 million last year to $1.3 billion in 2009. Though revenues from VoIP IC sales have grown slowly on the infrastructure side, due to what the firm describes as "extreme price pressure," In-Stat expects wireless handsets to emerge as a key market for the chips over the next few years.
"By the end of the forecast period, VoIP functionality will be integrated into a high percentage of new wireless handsets," In-Stat analyst Norm Bogen said in a statement. "From a revenue perspective, the IP Phone sub-segment (wireless and wireline combined) represents the smallest revenue market today, but will be the largest one by 2009. This reversal will occur due to high growth in business-oriented IP PBX/hosted PBX phones and dual-mode wireless handsets."
Once-dominant VoIP IC maker Texas Instruments has seen its market share slip, despite increases in units shipped. According to In-Stat, vendors without production facilities are finding themselves in increasingly stronger positions to take advantage of the market.