Sales of professional encoders and transcoders, used to package TV channels for delivery are growing fast as more channels launch, and more channels drive complex delivery needs.
It’s good news for Top 5 players ARRIS, Cisco, Ericsson, Harmonic and Thomson Video Networks that between them account for 70% of the market.
IHS estimates shipments will grow by 25% between 2013 and 2017 with over 140,000 channels being shipped in 2013.
However, revenues will slow by 9% as chassis density increases and per-channel costs are pushed down for MPEG-2 and MPEG-4 encoders.
Much of this growth will come from emerging markets in China, India and South-East Asia, which will double in volumes between 2013 and 2017.
As cable digitisation in Europe and Asia is completed over 150,000 encoder channels will be needed between 2014 and 2017, accounting for a significant growth rate as existing channels are digitised, new channels added to digital packages, and cable headends are consolidated.
