As the migration from traditional analog radio to digital terrestrial and satellite radio broadcast services continues to gain momentum around the world, the shipment of digital radio receivers is predicted to soar in the next few years. A recent study released by high-technology market research firm In-Stat Worldwide indicates that market for digital radio receivers will grow from 5 million units in 2005 to almost 25 million unit shipments in 2010.

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“The primary factors contributing to this expected growth are falling receiver prices, an increase in the amount of compelling digital programming, significant boosts in promotion and advertising of digital radio, and enhanced functionality of digital radio receivers,” stated Stephanie Ethier, In-Stat analyst.

The In-State report titled “More Consumers to Tune Into Digital Radio in 2007” indicates that this growth will come from increased awareness of terrestrial HD radio and the continued popularity of satellite radio in the United States. Concurrently, in overseas markets, most notably in the UK, terrestrial digital audio broadcasting (DAB) will drive digital radio shipments, as per the report. In fact, this year in the UK, the DAB receivers are expected to outpace the analog counterparts, the study predicts. In addition, the launch of digital multimedia broadcast (DMB) services in Japan and Korea, along with increased promotional activity in Singapore, Australia and Taiwan, will drive digital radio shipments in Asia, according to the In-Stat study.

Furthermore, the report shows that XM Satellite Radio boasted some 8 million subscribers last year, while Sirius Satellite Radio signal was received by about 6.3 million subscribers by the end of 2006. Last year, 73% of respondents to an In-Stat U.S. consumer survey were aware of terrestrial HD radio on some level.

Likewise, according to iBiquity Digital Corp., HD radio stations have nearly doubled to more than 1100 in over a year. The HD Digital Radio Alliance has renewed its charter to aggressively promote HD radio, formerly known as in-band on channel or IBOC, broadcasting in the United States this year. Unlike satellite radio, the HD radio is free and comes from stations already known to the listeners. In fact, to lure consumers, manufacturers have also cut the price tag significantly.

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