The conversion from analog to digital radio is gaining momentum rapidly, according to In-Stat analyst Stephanie Ethier, who estimates that the market for digital radio receivers will grow from five million units in 2005 to almost 25 million unit shipments in 2010.
Ethier says the primary factors contributing to digital radio growth are falling receiver prices, an increase in digital programming, significant boosts in promotion and advertising, and enhanced functionality of digital radio receivers. She adds that opportunities abound for automobile OEMs, among others. Digital audio broadcasting is already the pervasive form of radio in Europe, with DAB radio receiver shipments outpacing analog radio receiver shipments this year.
An In-Stat research report, “More Consumers to Tune Into Digital Radio in 2007” (#IN0603159ID), contains five-year unit shipment, average selling price, and revenue forecasts for digital terrestrial and digital satellite radios in the Americas, Europe and Asia.