While the traditional cable set-top box market has reached maturation, the IP set-top box market is still nascent.

According to recent research by In-Stat, the IP set-top box market segment is still growing, and it's forecasting that unit shipments will top 21 million this year. Overall, the IP set-top box market will grow 14 percent this year.

"The recent uptick in IP set-top boxes is a result of telcos gaining subscribers from cable and satellite providers, as well as replacing the boxes of current subscribers," said In-Stat research director Michelle Abraham. "Future increases for IP set-top box shipments will likely be driven by service providers moving to a server/client architecture where there is a media gateway/server located in the media room of the house that shares its content with client boxes that are distributed throughout the rest of the home. These client boxes will be IP STBs. DirecTV is one of the first providers to offer this service, but In-Stat expects that others will follow over the next few years."

Recent In-Stat research included:

  • Motorola remained the market share leader in 2010, with 21 percent of the market.
  • North American IP STB unit shipments will increase 48 percent in 2012.
  • In 2013, Western Europe will account for 46 percent of worldwide IP STB revenues.