China to Supply Half of World’s Digital Set-Top Boxes
Jul 21, 2005
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China supplied 35 percent of the worldwide digital set-top box market in 2004, and more than 50 percent of all worldwide digital set-top boxes are forecast to be produced in China by 2010, according to a report from IMS Research.

The research firm, based in Wellingborough, UK, says that China produced more than 17 million digital set-top boxes in 2004, which accounted for around 35 percent of the total worldwide market, including China. The firm says this figure has already made China the largest digital set-top box production base in the world.

The production volume of digital set-top boxes in China is forecast to grow at a 21 percent CAGR over the next 5 years to reach 56 million units in 2010. This means that more 56 percent of worldwide digital set-top box supply in 2010 is envisioned to come from China, IMS reports.

"In 2004, more than 50 percent of the digital set-top boxes produced in China were destined for export markets,” notes Ann Yi-Yen Bird, who authored the research report. "Despite high growth predicted for the domestic digital set-top box market, the proportion of total Chinese production output for export markets is forecast to maintain at above 50 percent over the next 5 years."

Currently, the majority of digital STBs produced in China are basic satellite boxes. As deployments of digital cable TV, digital terrestrial TV, and IPTV in both China and the rest of the world intensify, IMS says the proportions of digital cable, digital terrestrial, and IP set-top boxes within total Chinese digital STB production are expected to increase over the next 5 years.

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