IHS: Global Market for Connectable Set-Top Boxes to Surge

EL SEGUNDO: The global market for connectable set-top boxes (STBs) is forecast to spike by 91 percent from 2012 to 2017, according to the latest report from IHS.

Worldwide shipments of connectable STBs are set to rise to 125.6 million units in 2017, up from 65.8 million in 2012. A total of 45 percent of all STBs shipped in 2017 will be connectable, which is up from the 26 percent in 2012.

“Consumers increasingly are demanding connectivity from their electronics devices, and STBs are playing a central role in the networking of products,” said Daniel Simmons, senior principal STB analyst at IHS. “Connected STBs perform all kinds of useful functions, including distributing digital video recorder (DVR) streams to televisions in multiple rooms, as well as delivering video on demand (VoD) and web content to various platforms. Furthermore, MHGs and their associated thin clients, which also employ connectivity, are being used by pay-TV operators to provide advanced services and content to all kinds of IP-connectable devices, including mobile products like smartphones and media tablets.”

In 2013, IPTV pay-TV operators will account for the largest share of the connectable STB market, with 39 percent of shipments. However, the coming years will see a rapid increase in shipments of cable HD STBs by Chinese operators and multimedia home gateways (MHGs) migration throughout the rest of the world. Because of this, cable will be the major driver of growth in connectable STB, with shipments increasing at a rate of about 25.4 percent a year to reach 45.8 million shipments in 2017.

North America is currently the largest market for connectable pay-TV STBs, accounting for around 41 percent of global shipments in 2013. The region is expected to retain its global lead through 2017. The Asia Pacific is expected to experience the fastest growth during the period from 2012 to 2017, with shipments expanding at a compound annual growth rate (CAGR) of 17.2 percent.

“In mature pay-TV markets like North America, operators are seeing IP-based services as an opportunity to differentiate their products, and this is driving shipments,” said Wajahat Abbassi, STB analyst for IHS.