According to Technavio, the global set-top box market size is expected to post a compounding annual growth rate (CAGR) of nearly 4% during the period 2018-2022.
The digitalization of cable networks is one of the major reasons for the set-top market growth. Digitalization has increasingly become prominent in several countries as it helps enhance the quality of cable networks and enables the network operators to record the number of subscribers. Furthermore, government regulations mandating the digitization of cable networks in emerging economies have pushed demand for set-tops in those countries. The installation of set-tops ensures transparency as the government can estimate the number of households that have access to cable networks. The cable operators will thus be liable to pay taxes for broadcasting content.
Technavio believes the development of integrated set-tops will have a positive impact on the market and contribute to its growth significantly over the forecast period. The research also analyzes other trends and market drivers that are expected to affect market growth over 2018-2022.
Various TV manufacturers are developing TV sets integrated with set-top boxes. Such TVs ensure clutter-free installation as the number of wire sets within a single device is limited. The TVs are designed to integrate a digital satellite tuner, which allows the reception of DTH signal without the need for an external set-top. Such TVs offer access to social media and online video streaming platforms. Additionally, they offer better storage options with capacities up to 2 TB. The integration of set-tops is expected to help reduce signal loss while offering a single remote solution with an intuitive user guide.
"Apart from the development of integrated STBs, other factors such as the integration of motion sensors in STBs, and changes in design and technological advances will have a significant impact on the growth of the set-top box market value during the forecast period," said a senior analyst at Technavio.
The APAC region led the set-top-box market in 2017, followed by the Americas and EMEA respectively. The growth of the set-top box market share in APAC is attributed to several factors such as the increased shipment of TV units, rapid digitization, and the increasing penetration of UltraHD set-tops in the region.