Key to the growth of semiconductor opportunities in VoIP applications is the cost saving proposition offered by voice over internet protocol (VoIP) technology, according to new analysis from Frost & Sullivan.
The firm said that the current economic slowdown has softened the demand for VoIP equipment and related semiconductors, making it increasingly important for semiconductor vendors to be able to differentiate their products and remain price competitive.
According to the research, the market earned revenues of over $522.4m in 2008, and is expected to reach $657.3m in 2012. The end-user segments covered in this research service are carrier infrastructure, enterprise, and consumer.
However, businesses are likely to postpone their equipment purchases in the current economic environment and this is anticipated to have a negative impact on the sales of associated semiconductor devices. Greenfield deployments of VoIP are expected to continue, but at lower levels, the firm said.
The firm said that semiconductor manufacturers should provide offerings with value-added features at attractive price points, easing the migration to VoIP. By providing features that enable voice quality improvements, higher integration, and complete software offerings, will help vendors to differentiate their offerings from those of competitors.
Jayalakshmi Janakiraman, research analyst at Frost & Sullivan, said: Although businesses are adopting aggressive cost-cutting methods during the current economic downturn and are being deterred by the significant installation costs involved in VoIP deployment, the associated cost saving benefits will encourage them to plan for migration.
