Despite sequential declines in cable, IPTV and hybrid IP/DTT set-top box sales, the overall set-top market held steady in 2Q11 at $3.45 billion, down less than a percent, thanks to healthy gains in the satellite segment.
With a strong set-top upgrade cycle ebbing in North America and Europe, and with more consumers watching TV online via OTT media players, Infonetics expects the overall set-top box market to peak in 2011 followed by overall annual declines in the single digits through 2015 and beyond, despite healthy growth in IP and hybrid IP set-tops.
Pace overtook Motorola by a hair in overall set-top revenue in 2Q11, attributed to the fact that it offers solutions across all market segments (telco, cable, and satellite operators). Cisco holds a commanding lead in both revenue and units for IP set-tops, Motorola leads in cable set-top revenue, and Skyworth Digital leads in cable set-top unit shipments.
Cable and satellite set-top shipments continue to contribute the largest portion of revenue due to their large installed customer bases and operators' ongoing upgrades to support digital video, HD, DVR and more interactive features.