Semi TAM for digital cable STBs decline; opportunity remains with latest features

SCOTTSDALE, USA: Although the market for semiconductors in digital cable set top boxes (STBs) is projected to decrease from 2008 to 2013, opportunity for chip vendors remains with the latest tech features, according to In-Stat.

In 2008, the Total Available Market (TAM) for digital cable STB semiconductors was over $2.7 billion. Through the remainder of the forecast period, the gradual decline in digital cable set top box unit shipments will result in a decreasing semiconductor component TAM.

Worldwide demand for digital cable set top boxes is falling in 2009, after a record-setting year in 2008. The decline is a result of reductions in cable operator capital expenditure (CAPEX) budgets brought on by the global economic recession.

“While overall unit shipments are in a gradual decline, the cable set top box market remains a dynamic marketplace, particularly for semiconductor vendors,” says Mike Paxton, In-Stat analyst. “The transition to MPEG-4, the move toward a hybrid QAM + IP cable set top box, and continued integration of personal video recording (PVR) capabilities are creating new technology opportunities for chip competitors.”

Recent research by In-Stat found:

* Global unit shipments of digital cable STBs are projected to be 44 million in 2009, a decrease of 6 percent from 2008.
* The component Bill of Materials (BOM) for an Advanced Digital Cable STB will fall below $80 by 2012.
* In-Stat projects the average selling price (ASP) of the MPEG-4 HD decoder will decline by over 40 percent from 2008 to 2012.
* The China market contrasts with the broader cable STB market. Total unit shipments are projected to set another record in 2009, approaching 20 million units.