Demand for Cable Set Top Boxes Softens, but Some Regional Markets Still Offer Growth Opportunities, Says In-Stat

The cable set top box market grew in 2009, once again setting a record for global unit shipments. However, growth slowed significantly last year and 2010 is on track to be the first year of negative growth since 2002, according to In-Stat. Despite the overall market slowdown, some regional markets are poised for growth. Examples of these regional markets are Europe, where the demand for high definition (HD) cable set top boxes is fueling growth, and Latin America, where the shift from analog cable TV to digital cable TV is spurring unit shipment growth.

"Even in a soft year, the cable set top box market continues to offer solid growth opportunities for cable set top box manufacturers,” says Mike Paxton, Principal Analyst. "This is particularly true if manufacturers target emerging regional markets or if they focus on high margin product categories like HD or PVR-enabled cable set top boxes.”

New research by In-Stat reveals the following:
• Worldwide digital cable set top box unit shipments are forecasted to decrease to 44.1 million in 2010, down 8 percent from 2009.
• Low cost, digital terminal adapter (DTA) devices are having a big impact on the US cable market. In-Stat is forecasting that over 7 million DTA devices will ship in 2010.
• The value of semiconductor components used in cable set top box products was $2.8 billion in 2009, only fractionally higher than in 2008.
• In 2009, the top three digital cable set top box manufacturers in total unit shipments were (in rank order) Motorola, Cisco Systems, and Technicolor (formerly Thomson). However, the combined market share of the top three manufacturers decreased to 41 percent of total worldwide unit shipments, down from 50 percent in 2008.

The research, "The Worldwide Cable Set Top Box Market: Challenges and Opportunities,” covers the worldwide market for cable TV set top boxes, with special emphasis on product manufacturers, market and technology trends, and the semiconductor content of the boxes.

www.in-stat.com