After experiencing annual growth of 43% in 2013 on shipments of 1.32 billion, the global application processor (AP) market is forecast to see decelerated growth in 2014, with shipments increasing 23% on year, according to a new Digitimes Research Special Report.
The report, titled "2014 Global Mobile Application Processor Market Forecast," explains that a maturing smartphone market, especially in China are the primary reasons for the slower growth rate.
Worldwide, shipments will reach 1.53 billion, but while China accounted for 38% of shipments in 2013, its share will drop slightly to 36% in 2014, Digitimes Research stated.
While market drivers will still include the usual suspects of Apple and Samsung in 2014, demand from local China players will not see the robust growth that it experienced in 2013. Annual shipment growth in China topped 60% in 2013 but will slow to 17% in 2014, as China's local brand and white-box companies shift their target market abroad, Digitimes Research forecast.
In terms of products in the market, with its Cortex-A12 being widely adopted, ARM will see its market share for APs in smartphones climb substantially in 2014. Meanwhile, with support from Apple and Samsung, the ARM 64-bit architecture will stand a chance of grabbing more than 30% of the market in 2014, according to Digitimes Research.
The research arm of Digitimes added that except for Samsung, Qualcomm and Apple, other vendors are unlikely to adopt 64-bit architecture in their chip designs until 2015.
More information about the report can be found here.
About DIGITIMES Research
DIGITIMES Research is the research arm of DIGITIMES Inc., Taiwan's leading high-tech media outlet. Operating as an independent business unit, DIGITIMES Research focuses on monitoring key high-tech industries, while also guiding clients toward suitable new business as well. Market intelligence and analysis is provided to more than 1,000 corporate customers worldwide. Research and consulting services cover a full range of industries, including information and communications technology (ICT), flat panel display (FPD), renewable energy and semiconductor design and manufacturing.