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Set-top market may decline after ’12

Thu, 11/20/2008 - 7:05am
Brian Santo

Heard of peak oil? Get ready for peak set-tops. The global market for set-top boxes will grow gradually over the next few years and peak at around 110 million shipments in 2012, according to ABI Research.

After that, STB unit volumes are projected to decline for all platforms – including terrestrial TV, IPTV, satellite and cable.

ABI expects that demand for set-tops will diminish upon the completion in most developed countries of the transition to all-digital television broadcasting. The trend for over-the-top video will help push the demand for substitutions for the STB: residential gateways, media hubs, gaming boxes, and the integration of STB components into TVs themselves.

ABI Research principal analyst Robert Clark predicts revenue will not track directly with unit shipments. He said, “STB revenues for all platforms have declined significantly between 2007 and 2009, but will recover by 2010 and remain relatively stable through at least 2013.”

That will be attributable largely to more expensive boxes representing a greater share of the STB market. ABI expects greater sales of combined HD/PVR, especially in the DBS segment.

The findings are from ABI Research’s new study, “Global Set-Top Box (STB) Markets.”

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• Set-top market may decline after '12

• Broadband Briefs for 11/20/08

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