IPTV set-top market is ‘cooling down’

Although the IP set-top box market grew by 55% in 2008, its rate of expansion is unlikely to continue, according to the US-based research firm In-Stat.

Many telcos have already launched their TV services, so there are fewer new customer prospects. In addition, the economic climate will negatively impact investments in new services.

“Established IPTV providers such as France Telecom, AT&T, Free, British Telecom, Deutsche Telekom, and China Telecom provided much of the subscriber growth that drives the demand for IP set top boxes,” said Michelle Abraham, In-Stat analyst, in a statement.

“We expect this situation to continue in 2009 and 2010. However with few new deployments, unit shipments of IP set top boxes will see only slight increases in 2009 and 2010.”

More than 50% of 2009 IPTV set-top box unit shipments in Western Europe will have hard disk drives. Among the key technology trends are improved power management and support for 3D graphics, multiple codecs, and open software platforms.

The average bill of materials for an HD IP set top box will fall below $50 (or €35) in 2010.

Among the semiconductor competitors providing solutions for the IP set-top box market are Broadcom, CopperGate, Intel, NXP, Sigma Designs, and STMicroelectronics.

Motorola held onto the top market share position in IP set-top boxes in 2008, but its market share slipped from 2007 as Cisco ramped up shipments.