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Report: China Sparks Set Top Box Growth Spurt

30 Apr, 2008 By: Erik Gruenwedel

Strong demand for cable set-top boxes in China combined with sustained growth for advanced boxes in North America will fuel the market through 2012, according to a new report.

In-Stat, a Scottsdale, Ariz.-based research firm, said more than 14.7 million set-top boxes were shipped to China in 2007, up from 9.9 million in 2006.

Global shipments topped 41 million units in 2007 compared to 29.7 million in 2006, with revenues exceeding $6 billion versus $4.8 billion.

Unit shipments of advanced or high-end digital cable set-top box products, including high-def capable and digital video recorder-enabled boxes, broke records in 2007. More than 11 million advanced digital cable set-top boxes shipped in 2007, up 30% from unit shipments in 2006.

Motorola and Cisco Systems remain the top two global manufacturers of digital cable set-top boxes, although their combined market share in 2007 decreased to 45% as Chinese set-top box manufacturers increased production.

“The next several years also look bright for this market,” said In-Stat analyst Mike Paxton.

He said shipments would gradually decrease as the transition from analog to digital cable TV matures.

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