While Semi TAM for Digital Cable Set Top Boxes Declines, Opportunity Remains With Latest Features

Although the market for semiconductors in digital cable set top boxes (STBs) is projected to decrease from 2008 to 2013, opportunity for chip vendors remains with the latest tech features, according to market research firm In-Stat  In 2008, the Total Available Market (TAM) for digital cable STB semiconductors was over $2.7 billion.  Through the remainder of the forecast period, the gradual decline in digital cable set top box unit shipments will result in a decreasing semiconductor component TAM.

Worldwide demand for digital cable set top boxes is falling in 2009, after a record-setting year in 2008.  The decline is a result of reductions in cable operator capital expenditure (CAPEX) budgets brought on by the global economic recession.

While overall unit shipments are in a gradual decline, the cable set top box market remains a dynamic marketplace, particularly for semiconductor vendors. The transition to MPEG-4, the move toward a hybrid QAM + IP cable set top box, and continued integration of personal video recording (PVR) capabilities are creating new technology opportunities for chip competitors.

Recent research by In-Stat found the following:

  • Global unit shipments of digital cable STBs are projected to be 44 million in 2009, a decrease of 6% from 2008.

  • The component Bill of Materials (BOM) for an Advanced Digital Cable STB will fall below $80 by 2012.

  • In-Stat projects the average selling price (ASP) of the MPEG-4 HD decoder will decline by over 40% from 2008 to 2012.

  • The China market contrasts with the broader cable STB market.  Total unit shipments are projected to set another record in 2009, approaching 20 million units.

This Market Alert is drawn from the In-Stat research,  The Cable Set Top Box Market: After a Record Year in 2008, Slightly Lower Demand in 2009 (#IN0904475ME), which covers the worldwide market for cable set top boxes. It includes:

  • Examination of market and product development trends.
  • Worldwide and regional forecasts of cable set top box unit shipments by type through 2013.
  • Specific feature segmentation includes hard disk drive (HDD)/Personal Video Recorders (PVR), basic vs. advanced STBs, integrated cable modems, and high-definition.
  • Bill of materials and semiconductor total available market forecasts through 2013.
  • Market shares and profiles of leading cable set top box makers.
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This research is part of In-Stat's Multimedia Entertainment Equipment service. Multimedia-enabled consumer electronics devices are at the center of today's digital entertainment experience. In-Stat's Multimedia Entertainment Equipment (MMEE) research service identifies, examines, and forecasts several of these rapidly evolving consumer electronics devices on a worldwide scale. The MMEE service also uses primary research to better understand consumer perspectives on these products, to include purchasing intentions and product usage trends. The MMEE service examines key product manufacturers, discusses competitive business models, and provides the market shares of leading product manufacturers. A detailed examination of product technologies and features is also provided in most reports, including a Bill of Materials forecast with an emphasis on semiconductor content.

Related In-Stat research:

Worldwide Digital Satellite Set Top Box Market

The PVR Product Market: Demand Remains Strong

Worldwide IP Set Top Box Market

Digital Terrestrial TV Set Top Boxes 2009: Analog Shutoff Fuels Worldwide Market

The Worldwide Cable TV Market: Video and High-Speed Data Subscribers

Set Top Box Database

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