Report: Pace, Moto battle for STB lead; hybrids set to grow
Pace and Motorola are locked in a battle for the overall lead in the global set-top box market, while hybrid boxes will have the strongest growth rate over the next few years.
Market research firm Infonetics Research released some of the results from its first-quarter 2011 cable, satellite, IPTV and OTT set-top boxes and subscribers market size, market share and forecast report.
Among the results, Motorola is leading the overall worldwide set-top box market in revenue, while Pace is first in units shipped. In the IP set-top box market, Cisco is the market share leader for both revenue and shipments, while EchoStar has a slight edge over Technicolor in worldwide satellite set-top box revenues.
Infonetics said that the global set-top box market declined 10 percent in the first quarter of this year to $3.1 billion, which it attributed to normal seasonal trends.
"Despite a quarter-over-quarter decline in the global set-top box market, all major segments are up from this time a year ago in both revenue and shipments, indicating that the pay-TV market is rebounding after two years of significant declines. In Q1 '11, evidence continued to mount that operators are in the early stages of implementing hybrid IP networks that offer the best of both OTT and on-demand services combined with linear broadcast. As such, the hybrid segment of the market will experience the strongest growth over the next few years," said Teresa Mastrangelo, directing analyst for video at Infonetics Research.
Infonetics said the cable set-top box segment continued to contract as subscriber growth remained limited across the North American and EMEA markets and demand slowed for advanced services. Because of those factors, the cable set-top box segment experienced the strongest sequential revenue declines, down 13 percent in the first quarter of this year.
Lower-than-expected demand for IPTV services in EMEA during the first quarter resulted in strong declines in shipments into this region, causing a 12 percent drop in global IP STB revenue.
Infonetics said the demand for OTT media services remained strong in the first quarter, but there are some speed bumps ahead in this category. During the first quarter, hybrid boxes represented 8 percent of revenue and 7 percent of shipments.
Netgem was first overall in hybrid IP/OTA set-top boxes, Motorola was on top in the hybrid IP/QAM category and ADB was first in hybrid IP/DVB-S boxes.