Aided by a diverse range of product offerings, Pace edged out Motorola in overall set-top box revenues in the second quarter, according to a new report by Infonetics Research.

Infonetics said Pace overtook Motorola because it offered boxes across all market segments, including cable, telco and satellite operators.

Other market research from Infonetics included:

  • Despite sequential declines in cable, IPTV and hybrid IP/DTT set-top box sales, the overall set-top box market held steady in the second quarter of this year at $3.45 billion, down less than a percent thanks to healthy gains in the satellite STB segment.
  • Cisco holds a commanding lead in both revenue and units for IP set-top boxes, Motorola leads in cable set-top box revenue, and Skyworth Digital leads in cable STB unit shipments.
  • Cable and satellite set-top box shipments continued to contribute the largest portion of set-top box revenue due to their large installed customer bases and operators' ongoing upgrades to support digital video, HD, DVR and more interactive features.
  • With a strong STB upgrade cycle ebbing in North America and Europe, and with more consumers watching TV online via OTT media players (Apple TV, Roku Media Player, etc.), Infonetics expects the overall set-top box market to peak this year, followed by overall annual declines in the single digits through 2015 and beyond despite healthy growth in IP and hybrid IP set-top boxes.
Overall Set-Top Box Market

"The overall set-top box market held steady in the second quarter of 2011, with pockets of growth evident in all regions, particularly Central and Latin America. Pure IP set-top boxes remain a bright spot, with year-over-year global revenue growth at over 27 percent, as telcos are experiencing strong demand for their IP-based video services. Looking forward, early signs indicate a robust period of opportunity is imminent for the hybrid IP segment, particularly in the cable market, as hybrid IP set-top boxes have the same capabilities as standalone over-the-top (OTT) players, plus the added benefit of providing linear broadcast television programming," said Teresa Mastrangelo, Infonetics Research's directing analyst for video.