Worldwide IP Set Top Boxes: Moving Beyond the Telco

IP set top boxes are used by telcos in the delivery of their telco TV services. Growth in the box market is dependent on the growth of telco TV subscribers, as well as the replacement of existing boxes with those new advanced features. Set top box vendors are continually coming out with new models that integrate more features than the last in order to encourage new orders.

IP set top boxes are part of In-Stat’s continuous coverage of the set top box market. While the IP box segment is the smallest of the four box categories, it has been a leader in box capabilities.

The report contains worldwide five-year total unit shipments, units with hard disk drives, HD unit shipments, ASPs, and revenue broken down into seven geographic regions. Historical market share data is provided for 2008 and 2009. A bill-of-materials forecast for an HD IP set top box through 2014 details the components of IP set top boxes, and a five-year forecast of the worldwide semiconductor TAM for IP STBs is also provided.

IP set top boxes are used by telcos in the delivery of their telco TV services. Growth in the box market is dependent on the growth of telco TV subscribers, as well as the replacement of existing boxes with those new advanced features. Set top box vendors are continually coming out with new models that integrate more features than the last in order to encourage new orders.

IP set top boxes are part of In-Stat’s continuous coverage of the set top box market. While the IP box segment is the smallest of the four box categories, it has been a leader in box capabilities.

The report contains worldwide five-year total unit shipments, units with hard disk drives, HD unit shipments, ASPs, and revenue broken down into seven geographic regions. Historical market share data is provided for 2008 and 2009. A bill-of-materials forecast for an HD IP set top box through 2014 details the components of IP set top boxes, and a five-year forecast for the worldwide semiconductor TAM is also provided.

Methodology

This report discusses IP set top boxes used to receive video services from telco TV networks. These video services include broadcast TV and entertainment-on-demand received on a TV set. This report focuses mainly on boxes deployed by telecommunications providers.
We did not count products like digital media adapters, which transfer content to the TV via a PC connection, as IP set top boxes. While these products have many similar features, they will be sold at retail, while IP set top boxes will be deployed through telco operators.

Additionally, we did not include hybrid set top boxes that have both an IP and a cable or satellite tuner. Therefore, the boxes that Verizon is using for FiOS TV, which have a cable tuner, are not counted as IP set top boxes. We are counting the hybrid IP boxes with digital terrestrial tuners since the service providers deploying these boxes are telco operators.

Our research methodologies include the following:

- Email, phone, and in-person interviews with service providers, equipment vendors, and semiconductor suppliers in August and September 2010.

- Analysis of service provider, equipment vendor, and semiconductor supplier financial reports.

- Analysis of product literature from telephone companies, equipment vendors, and semiconductor suppliers.

- Analysis of In-Stat proprietary market information and verification with other industry analysts.

- Background research of telco TV and optical fiber technologies. Sources included white papers, magazines, and journals.

For this report, we interviewed ADB, Amino, Broadcom, Cisco, Entone, Motorola, Netgem, Sigma Designs, and STMicroelectronics.
The numbers in this report are calculated at a higher precision than shown. As a result, some of the numbers may not calculate exactly due to rounding. All revenues are shown in US dollars. SHOW LESS READ MORE >

Executive Summary
List of Tables
List of Figures
Introduction
IP Set Top Box Vendors
- ADB
- Amino
- Cisco
- Entone
- Motorola
- Netgem
- Pace
- Sagemcom
- Samsung
- Technicolor
- Others
- Market Share
Forecast
- North America
- Latin America
- Europe
- Mid-East/Africa
- Asia/Pacific
- High-Definition
- Digital Video Recorders
- Pricing
- Revenue
New Features
- 3D
- Wireless Connections
--Transcoding
- Wired Connections
- Gateway Configurations
Component Technology
- Bill-of-Materials
- Set Top Box SoC Suppliers
-- Broadcom
-- Intel
-- Sigma Designs
-- STMicroelectronics
-- Trident Microsystems
-- Others
- Methodology

List of Tables
Table 1. Worldwide IP Set Top Box Unit Shipments by Vendor 2008 and 2009
Table 2. Worldwide IP STB Unit Shipments by Region, 2007–2014 (Units in Thousands)
Table 3. Worldwide High-Definition Non-DVR IP Set Top Boxes by Region, 2007–2014 (Units in Thousands)
Table 4. Worldwide High-Definition DVR IP Set Top Boxes by Region, 2007–2014 (Units in Thousands)
Table 5. Worldwide IP STB ASPs by Region, 2007–2014 ($US)
Table 6. Worldwide Revenues for IP Set Top Boxes by Region, 2007–2014 (US$ in Millions)
Table 7. IP Set Top Box Bill-of-Materials, 2007–2014 ($US)
Table 8. Worldwide Semiconductor TAM for IP Set Top Boxes, 2007–2014 (US$ in Millions)

List of Figures
Figure 1. Worldwide IP Set Top Box Market, 2009–2014 (Units in Millions; Revenues in Billions)

More HD Channels, New Features Driving IP Set Top Box Sales Growth

In the highly competitive pay TV services market, telcos are adding new video services that require new IP set top boxes (STB). The addition of more HD channels and Over-the-Top (OTT) video services will be strong contributors to IP set top market growth over the next few years, according to In-Stat (www.in-stat.com).

“Since telcos in most geographic regions have significant competitors for TV services, many are working in concert with set top box manufacturers to develop new boxes,” says Michelle Abraham, Industry Analyst for In-Stat. “Vendors are also enhancing their STBs to make installation and remote management of boxes easier for telcos.”

Recent In-Stat research found the following:
- The IP set top box market will grow 24% in 2010.
- Motorola remained the market share leader in 2009 with 27%.
- There is some vendor consolidation taking place with ADB buying Pirelli in 2010.
- Excluding the Middle East/Africa and Latin America regions, which are growing from a small base, the North American market will see the strongest growth over the forecast period.
- In-Stat expects slower price erosion on the set top box silicon since many SoCs have already eliminated other discrete ICs.

Recent In-Stat research, Worldwide IP Set Top Boxes: Moving Beyond the Telco is part of In-Stat's continuous research on the set top box market, which includes terrestrial, satellite, cable, and IP set top boxes. IP set top boxes are used by telcos in their deployments of managed IPTV services (referred to as telco TV in this report) for delivery of the video to the TV set. The research includes:
- Worldwide IP STB unit shipment and revenue forecasts by region through 2014.
- Worldwide IP STB shipments by vendor for 2008 and 2009.
- Worldwide IP STB Average Selling Prices (ASPs) by region.
- Profiles of key vendors: ADB, Amino, Cisco, Entone, Motorola, Netgem, Pace, Sagemcom, Samsung, Technicolor, and others.
- Exploration of new IP STB features.
- Semiconductor Bill-of-Materials and Total Available Market

This research is part of In-Stat’s Multimedia Entertainment Equipment service, which provides comprehensive analysis and forecasts of the worldwide market for multimedia-enabled consumer electronics devices, including set top boxes, digital TVs and personal video recorders.

- Broadcom
- Intel
- Sigma Designs
- STMicroelectronics
- Trident Microsystems
- ADB
- Amino
- Cisco
- Entone
- Motorola
- Netgem
- Pace
- Sagemcom
- Samsung
- Technicolor