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High growth outlook for STB shipments

Posted: 27 Jan 2009     Print Version  Bookmark and Share

Keywords:Set-Top Box  STB shipments  television broadcasting  digital television 

Worldwide Set-Top Box (STB) shipments are predicted to nearly double from 2007 to 2012, providing an attractive opportunity for contract manufacturers, says iSuppli Corp.

Global STB shipments are set to surge to 21.55 crore units in 2012, rising at a CAGR of 12.8 per cent from 11.81 crore in 2007. In 2008, shipments rose to 14.28 crore units, up 20.9 per cent from 2007.

Meanwhile, the percentage of total STB manufacturing conducted by contract manufacturers will increase to 75.3 per cent in 2012, up from 67.8 per cent in 2007, iSuppli predicts. This will cause global STB contract manufacturing to soar to 16.2 crore units in 2012, double the 8 crore in 2007. This high growth outlook is spurring intensified competition among contract manufacturers and changes in the industry landscape that will affect brands, contract manufacturers and component suppliers that operate in the STB supply chain.

STBs defy gravity

The major factor driving the expansion of the STB market during the near-term is the surge in demand in North America and Western Europe, due to these nations' looming deadlines for the transition of television broadcasting signals from analogue to digital.

In the United States, the Department of Commerce's National Telecommunications and Information Administration (NTIA) launched the TV Converter Box Coupon Program starting in January 2008 that allows up to two Rs.2,001.46 ($40) coupons per household for consumers to purchase certified STBs for the digital television transition. An estimated 3.5 crore STBs will be required for this transition by the digital transition in February.

After developed regions complete the transition during the next couple of years, emerging

markets will pick up and fuel continuous growth of the worldwide STB market.

Although China launched and finalised its digital TV standards in 2006 and started promoting them in select cities and provinces, the complete transition will not take place until 2015, which will provide Chinese consumers with a more gradual process by which they can adapt to the new digital TV standards. iSuppli estimates the five-year CAGR for STB shipments to China for the 2007 to 2012 period will be as high as 40 per cent.

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