Digital set-top box revenues from the Chinese market increased by 77 percent in 2005, according to estimates in a report from IMS Research. IMS put digital set-top box revenues (excluding export revenues) at approximately U.S. $234 million. The revenues are forecast to grow to about $893 million in 2010.
This growth is primarily attributed to the digital cable set-top box market in China. In 2005, revenues from this segment were estimated to achieve a 180 percent growth over 2004.
“The government authorities have shown strong support for digital cable TV to replace analog TV services, hence resulting in strong growth in this segment," said IMS Senior Analyst Richard Jun Li. "In addition, the fast growing Chinese economy is stimulating the increased use of digital set-top boxes as average household income grows.”
Initiatives to replace analog TV with digital TV have just started in China, and the country is a long way from achieving analog switch-off, which should enable growth in the digital set-top box market for many years.
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