Set-top box market to peak in 2012

The market for pay-TV set-top boxes (STBs) will peak within the next three years, according to market analysts.

Annual unit sales will grow from 104 million in 2008 to a projected peak of127 million in 2012, said UK-based research firm Screen Digest.

By 2012 the market will be worth an estimated 10 billion euros.

Sales will begin to tail off from 2013, Screen Digest said, although market value will remain unchanged.

The increased demand over the next three years will be driven by digitisation of pay TV platforms in Eastern Europe and the emerging BRIC markets.

Reduced sales in 2013 will occur as the Chinese cable TV market begins to saturate following rapid growth.

Shipments of IPTV STBs will start to decline significantly in 2013, Screen Digest said, with the real opportunity for IP technology coming from hybrid broadcast DTT, satellite, and DOCSIS 3.0 cable services.

STB market value will continue to grow through the sale of high-end HD and PVR STBs in Western Europe and North America.

“There is still a massive opportunity in the pay TV market for set-top box vendors, both in premium HD and PVR boxes and through new demand in emerging markets,” said Tom Morrod, senior analyst at Screen Digest.

“Although unit growth in the mature markets is starting to slow compared to the last five years, value growth will continue, driven by premium devices integrating HD, PVR and additional technologies such as home networking, hybrid service and widgets”