Technology

IP Set-Top Boxes to rake in $3 bn by 2014: Study









MUMBAI: IP STBs is set to generate a market value above $3 billion by 2014, reveals the latest set-top box market data from ABI Research.


The data clearly supports the global phenomenon of switching over from analog to digital TV services wherein set-top boxes now have a more crucial role to play in homes for accessing entertainment and information services provided by television service operators.


This phenomemon is especially apparent in mature high-speed Internet economies where service providers strive towards providing interactive bi-directional television, thereby leading to the growth of IP set-top boxes.

 

This analogue-digital switchover has also brought about a progressive momentum towards sophisticated box types as well as advanced compression technologies.


Notes ABI Research industry analyst Serene Fong, “Shipments of basic boxes across all television platforms have declined and will continue to fall throughout the six-year forecast period. In contrast, shipments of boxes with HD capabilities and MPEG-4 compression technologies – including HD hybrids – will head north.”


This is closely associated with consumers’ thirst for higher quality content which is often satisfied through HD quality videos. The increased ownership of HDTVs, especially in the homes of technologically advanced nations, is a good indicator of where the market is heading.


In terms of vendors‘ market standing, Motorola and Cisco Systems continue to sit at the top of the cable STB vendor list with a combined market share close to 50 per cent in 2008. Thomson and Panasonic ranked highest in the DBS and DTT segments respectively in the same period.


"Vendors’ strategies for retaining their market shares are targeted towards emerging technologies such as HDTV, IPTV, and digital TV, as these are expected to be the main driving forces for STB sales in the coming years," Fong says.

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