The semiconductor IP market expanded 25% in 2001 despite the weak global economy and declining sales in the rest of the electronics industry, according to research firm Gartner Dataquest.
In a report today, Gartner Dataquest said revenue in the chip IP market grew to $892 million last year from $713.5 million in the prior year.
The market was dominated again by Cambridge, England-based ARM Holdings PLC, which increased its share to 20% from 18% with sales of $179 million.
Despite ARM's dominance, other market leaders saw their share eroded by the entrance of new companies, Gartner Dataquest said. For instance, No. 2 semi IP supplier Rambus Inc.'s 2001 revenue rose 13%, to $107.3 million from $95.1 million in 2000 but its market share fell more than one percentage point to 12% as newer companies at the bottom of the ladder slowly gained traction.
"The reduction in market concentration is a demonstration of IP market immaturity," said Jim Tully, chief analyst for Gartner Dataquest's Semiconductor Industry Worldwide group. "There was relatively little merger and acquisition activity among market leaders, so new market entrants have tended to dilute the market. This will change as the market matures."