Demand in China, which has taken 9 million cable set top boxes this year, has made 2006 a record year for the global digital cable set top market, says US researcher In-Stat.
In total, global digital cable set top box shipments rose to 27.5 million in 2006, up dramatically on the 15.6 million units shipped in the previously year which was known to be a weak year.
In-Stat expects digital cable set tops to continue strong through 2007 and cites demand in both the US and China. During 2007 there is a US mandate to separate the security that manages the content, from the set top, and this will lead to a whole new raft of set top sales says In-Stat.
Revenues for cable set top boxes set a new record in 2006 at $4.2 billion, up from $3.1 billion in 2005.
The global market lead that was enjoyed by the number one and two US suppliers, Motorola and Scientific Atlanta will continue, but their combined global market share has fallen from 69% in 2005 to just 49% in 2006, and will continue to fall, as Asian and European set top box manufacturers capture markets outside of North America, and also try to invade the US.
High-end cable set top boxes are the key market driver in the US with Digital Video Reorder or with High Definition or both, which accounted for over 8 million unit shipments in 2006.