Set-top box market hits $4.8 billion in 2Q14

Tuesday, October 14th, 2014 
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Set-top box market hits $4.8 billion in 2Q14; market seeing “mixed signals” reports Infonetics Research

CAMPBELL, CALIFORNIA — Market research firm Infonetics Research released excerpts from its 2nd quarter 2014 (2Q14) Set-Top Boxes and Pay TV Subscribers report, which tracks IP, cable, satellite, and digital terrestrial (DTT) set-top boxes (STBs) and over-the-top (OTT) media servers.

ANALYST NOTE

“The global set-top box (STB) market is in a fascinating period of mixed signals. While quarterly unit shipments are up, on a year-over-year basis shipments are down. And though nearly all STB product categories saw volume increases in 2Q14, satellite shipments continue a downward trend, while cable set-tops are growing due to an ongoing refresh cycle in North America and Europe,” says Infonetics’ Jeff Heynen, principal analyst for broadband access and pay TV.

2Q14 SET-TOP BOX MARKET HIGHLIGHTS

  • OTT Media Servers, DTT, Satellite, Cable, IPTVGlobally, set-top box (STB) revenue—including IP, cable, satellite, and DTT STBs and OTT media servers—is up 4% in 2Q14 from 1Q14, to $4.8 billion
  • STB unit shipments grew 7% sequentially in 2Q14, but are down 3% from the year-ago 2nd quarter (2Q13)
  • Cable STB revenue increased by 3% sequentially in 2Q14, and unit shipments grew 4% during this same period
  • Arris, the worldwide STB market share leader, gained almost 2 share percentage points in 2Q14 over 1Q14
  • Over-the-top (OTT) media servers are quickly becoming the STB of choice for pay TV providers in emerging markets such as China, where free video content is abundant and service providers are looking to bundle live streaming video with their own broadband offerings
  • The worldwide STB market is forecast by Infonetics to grow at a -0.05% compound annual growth rate (CAGR) from 2013 to 2018, when it will total $19.2 billion
  • In 2018, satellite STBs are expected to contribute the majority of STB revenue at 36%

STB REPORT SYNOPSIS

Infonetics’ quarterly STB report provides worldwide and regional market size, vendor market share, forecasts through 2018, analysis, and trends for IP STBs; cable and satellite STBs (digital, hybrid, video gateways, media players); DTT STBs; and OTT media servers. The report also tracks telco IPTV and cable and satellite video subscribers. Vendors tracked: Advanced Digital Broadcast (ADB), Apple, Arris Group, Changhong, Cisco Systems, Coship, DVN, Echostar, Huawei, Humax, Jiuzhou, Kingvon, Netgem, Pace, Roku, Sagemcom, Samsung, Skyworth Digital, Technicolor, ZTE, others.