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New Services Affect Set-Top Box Demand in U.S., Canada
Feb 18, 2005
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Independent research firm IMS Research forecasts that the U.S. and Canada region will account for approximately 26 percent of the worldwide market for digital set-top boxes in 2009.

The growth in set-top box shipments in this region is expected to be driven by deployments of advanced set-tops, such as HD and DVR boxes.

In a recent study, Worldwide Market for Digital Set-top Boxes and iDTVs, IMS Research estimates that the U.S. and Canada's set-top box market reached over 21 million units shipped in 2004.

“Until now, mid-range set-tops, such as ones enabling interactive services, have made up the largest share of this market,” state Paul Erickson, market analyst at IMS Research. “This is expected to change by the end of 2005, as both cable and satellite operators continue to deploy advanced HD and DVR boxes. Additionally, more over-the-air HD broadcasts will create demand for HD DTT boxes.”

In addition, the digital set-top box market is expected to plateau stating in 2007, as satellite and cable platforms reach high digital penetration levels. Revenues generated for shipments of digital set-top boxes are likely to decline over the next 5 years, as falling set-top box prices more than offset volume increases.

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