Global sales of digital TV set-top boxes smashed through the 100 million barrier for the first time last year, hitting sales of 102.4 million, an annual increase of 12%, according to a report by research group Strategy Analytics ( News - Alert), which predicts that, by 2012, annual global sales of all digital TV set-top boxes will reach nearly 200 million units.
The report, Digital TV Set-Top Boxes: Global Market Forecast, found IPTV’s ( News - Alert) market share has risen to 5.9%, compared to 3.6% in 2006.
In Europe, the market has settled somewhat, as consumers switch to integrated digital TV sets that do not require a set-top box, the report points out.
Cable’s share also rose, to 36.2%, while satellite and terrestrial shares declined. For 2008, the report predicts, the demand for digital terrestrial set-top boxes may surge, as analog broadcasting will be switched off in the U.S.
“We expect the Asia-Pacific region to overtake North America and Europe in 2008, accounting for a third of this year’s 129 million sales,” says Peter King, Director, Strategy’s Connected Home Devices.
The report breaks down the digital STB market into its four platforms: terrestrial TV, cable, satellite and IPTV  . It says that demand for digital terrestrial TV set-top boxes demand soared by more than half in 2007, largely as a result of the impending switchover from analog TV in the U.S. and a surge in demand for subsidized boxes.
“The set-top box remains the key gateway to advanced digital television services around the world,” says David Mercer, Principal Analyst. “Added value services, such as high definition TV, digital video recording, and Internet video, are all set to drive further growth in this strategically important sector.”
The report is based on analysis of more than 200 digital television platforms and operators around the world. It includes 5-year demand forecasts for 22 countries across the principal geographies, and segmentation by the major access platforms DTTV, IPTV, satellite, and cable.
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