Cable, Satellite, DTT and IP Set Top Box Markets Face Divergent Outlooks

SCOTTSDALE, Ariz. — Each of the major set top box (STB) segments, including Cable, Satellite, DTT and IP, faces widely different outlooks, according to market researcher, In-Stat.

Satellite, the largest of the STB segments, saw 6% growth in 2008, bolstered by triple-digit growth in the Asia/Pacific region. Unit growth is relatively steady for 2009 and 2010.

The cable STB market grew 8% in 2008 to nearly 45 million units. However, growth in 2009 looks to turn negative in the relatively mature market.

The nascent IP STB market grew 55 percent in 2008, but such breakneck growth will not continue. With few new telco TV deployments, unit shipments of IP set top boxes will see only slight increases in 2009 and 2010.

Finally, digital terrestrial (DTT) set top box units grew an astonishing 200% in 2008, driven by high-definition (HD) converter boxes supporting the US analog TV shut off. However, these shipments represented an unsustainable bubble. Growth falls back to 23% in 2009 and will contract nearly 30% in 2010.

Across the STB markets, personal video recorders (PVRs) and a transition to HD are among the major technology drivers. Global PVR unit shipments (across all STB types) exceeded 25 million in 2008, an increase of 14% over 2007.

Other STB research highlights include the following:

• Motorola held onto the top market share position in IP set top boxes in 2008, but its market share slipped from 2007 as Cisco Systems ramped up shipments.
• Multi-room or “whole home” PVR service has become available in an increasing number of cities in the US over the last year.
• HD Satellite STBs will comprise 18% of total unit shipments in 2009.
• The semiconductor opportunity in standard definition (SD) DTT STBs will peak in 2011 at nearly $500 million.

In-Stat Set Top Box Market Research includes the following reports:

— Worldwide Digital Satellite Set Top Box Market
— The PVR Product Market: Demand Remains Strong
— Worldwide IP Set Top Box Market
— Digital Terrestrial TV Set Top Boxes 2009: Analog Shutoff Fuels Worldwide Market
— Cable Set Top Boxes, to be published August 2009.

Each of the research reports includes:

• Unit, revenue and average selling price forecasts by region and by type through 2013.
• Bill of materials and total available market forecasts through 2013.
• Regional market overviews.
• Box vendor profiles, Silicon vendor profiles.

This research is part of In-Stat’s Multimedia Entertainment Equipment service.