High Definition DTT STBs to Drive Market Revenue to US$ 6 Billion in 2014

The DTT Set Top Box market continues to expand, as countries migrate from standard definition (SD) TV to high definition (HD) programs, and digital video recorders become more important. New products like hybrid web-to-TV set top boxes also will contribute to the long term growth of DTT STBs, pushing revenues to nearly US$ 6 billion by 2014, says In-Stat.

“The bulk of the market value resides in Western Europe and Asia/Pacific with the key growth regions being Latin America and Asia/Pacific,” says Gerry Kaufhold, Principal Analyst. “Sezmi TV will spur moderate growth for HD-DVR STBs in the US. The Middle East and Africa hold potential but not until the economic situation improves and local governments decide how they will handle subsidizing DTT converter boxes.”

Some of the research findings include

• Europe is embracing High Definition and optional Pay-TV services.
• DVB-T2 will provide a second growth phase for Europe.
• Hybrid Broadcast Broadband services and the UK’s YouView approach will increase demand for HD STBs equipped with disk drives and broadband connections.
• Intel Corp. is entering the DTT STB market with Metrological’s YuiXX Hybrid STB, Amino’s Freedom box, Google TV, and others.
• Africa and Latin America will “leapfrog” directly to MPEG-4 HD and spur long-term growth.
• Semiconductor TAM for all DTT STBs will exceed US$ 500 Million in 2014, with approximately 80% of the TAM coming from HD boxes.
• Licensing fees are a significant cost of manufacturing HD DTT boxes. By 2014, licensing will account for a higher percentage of the total Bill of Materials (BOM) than Decoders, Tuners or Memory devices.

Recent In-Stat research Global DTT Set Top Box Market: Riding the Digital Airwaves (#IN1004676ME) covers the worldwide market for digital terrestrial TV set top boxes. It includes:

• Worldwide and regional forecasts for SD and HD STB shipments, revenues, bill of materials, and component revenues through 2014
• Extensive country-level unit/revenue shipment detail for major countries in Europe, North America and Asia, including HD and DVR segmentation
• Analog shut off timetable by country
• Regional analysis of the status of DTT by country and region
• Examination of semiconductors and components used in DTT STBs

For a free sample of the report and more information, please contact Elaine Potter at: epotter@in-stat.com or call 480-483-4441.