STB market shrinking 5% a year

Technavio has published a market research report on the global set-top box market from 2016-2020. The market is predicted to exhibit a declining CAGR of about 5 per cent during the forecast period.

The report states: “Cable networks are undergoing digitisation as network operators want to keep track of the exact number of subscribers and the reception to the content being aired. In countries like India and China, this move has prevented signal tapping and maintained transparency in money transfers. STBs, along with digitising television also pave way for better picture quality at lower costs.”

Technavio’s study segments the global STB market into the following regions:

  • APAC
  • EMEA
  • Americas

APAC: biggest STB market

“APAC accounted for 47 per cent of the global STB market and 55 per cent of global television shipments in 2015. With digitisation of television being mandated by populous countries like India and China, the market witnessed significant growth. China achieved 100 per cent digitisation in 2015, while India is expected to achieve the same by the end of 2016,” says Ujjwal Doshi, one of the lead analysts at Technavio for consumer electronics research.

The penetration of HD STBs is relatively slow in the region. The slow adoption of HD STBs in the rapidly digitising region will lead to a very slow decline in the market. Even though China and India account for most number of STBs, they have basic sets, despite having sufficient infrastructure for HD broadcasts. Two countries that will show growth in the forecast period are South Korea and Japan, as they are experiencing high rate of penetration of ultra-HD STBs.

EMEA

The STB market in EMEA was valued at $4.95 billion in 2015. The build-in storage STB market in this region is influenced by Western European markets experiencing market saturation. In comparison, markets in Eastern Europe and the Middle East are experiencing rapid growth. The vendors in the market are quickly catching up to keep up with the growing demand.

The Middle East and Africa, which had witnessed the lowest digital penetration rates, are now digitizing their TVs. This is expected to drive the growth of the STB market in the countries during the forecast period. Though the penetration of advanced STBs like IPTV and hybrid STBs in the Middle East and Africa will be slow, the growth of the market will be driven by the increase in the number of governments mandating digitisation.

Americas

“The market in the Americas is heavily influenced by North America, which accounts for nearly 70 per cent of the market in the region. The region is one of the fastest adopters of the latest technologies like STB because of the high average disposable income. Although the STB market is currently saturated in the region, it will gain momentum as UHD STBs gain more prominence in the market. The UHD STB segment is set to witness tremendous growth after 2018”, says Ujjwal.

The satellite STB segment is the leading segment in North America. Countries in South America are experiencing steady market growth owing to the increase in digitisation. With the Government of Brazil announcing the purchase of 14 million STBs, the STB market is expected to experience significant growth in the future. South American countries are likely to register a positive CAGR in the forecast period in this market.

The top vendors in the global STB market highlighted in the report are:

  • ARRIS Group
  • Comcast
  • Huawei Technologies
  • Pace
  • Technicolor

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