Demand for Cable Set Top Boxes Softens, but Some Regional Markets Still Offer Growth Opportunities

SCOTTSDALE, AZ — The cable set top box market grew again in 2009, once again setting a record for global unit shipments. However, growth slowed significantly last year and 2010 is on track to be the first year of negative growth since 2002, according to In-Stat. Despite the overall market slow-down, some regional markets are poised for growth. Examples of these regional markets are Europe, where the demand for high-definition (HD) cable set top boxes is fueling growth, and Latin America, where the shift from analog cable TV to digital cable TV is spurring unit shipment growth.

“Even in a soft year, the cable set top box market continues to offer solid growth opportunities for cable set top box manufacturers,” says Mike Paxton, Principal Analyst. “This is particularly true if manufacturers target emerging regional markets or if they focus on high-margin product categories like HD or PVR-enabled cable set top boxes.”

New research by In-Stat reveals the following:

• Worldwide digital cable set top box unit shipments are forecasted to decrease to 44.1 million in 2010, down 8% from 2009.
• Low-cost, digital terminal adapter (DTA) devices are having a big impact on the US cable market. In-Stat is forecasting that over 7 million DTA devices will ship in 2010.
• The value of semiconductor components used in cable set top box products was $2.8 billion in 2009, only fractionally higher than in 2008.
• In 2009, the top three digital cable set top box manufacturers in total unit shipments were (in rank order) Motorola, Cisco Systems, and Technicolor (formerly Thomson). However, the combined market share of the top three manufacturers decreased to 41% of total worldwide unit shipments, down from 50% in 2008.

The research, “The Worldwide Cable Set Top Box Market: Challenges and Opportunities” (#IN1004680ME), covers the worldwide market for cable TV set top boxes, with special emphasis on product manufacturers, market and technology trends, and the semiconductor content of the boxes, including:

• Digital cable set top box Bill of Materials forecast
• 2009 market shares for digital cable set top box manufacturers
• Regional breakout of the worldwide unit shipment and revenue forecasts updated through 2014
• Companies mentioned in this report: Advanced Digital Broadcast (ADB), CableLabs, CableOne, Cablevision Systems, ChangHong, Cisco Systems, Comcast, Coship, Cox Communications, DVN Holdings, Google, Huawei, HUMAX, Jiuzhou, Mediacom, Motorola, Pace plc, Panasonic, Samsung, Skyworth, Suddenlink Communications, Technicolor, Time Warner Cable

For a free sample contact Elaine Potter, epotter@in-stat.com; (480) 483-4441