Digital set top boxes, or “STB,” market worldwide saw dampened activities in 2009, but the market remains a tremendous opportunity for STB manufacturers and technology providers, according to a report from In-Stat (News - Alert). 

“Looking forward, the transition from Standard Definition to High Definitionset top boxes will continue to provide STB vendors a solid growth opportunity,” Mike Paxton, In-Stat analyst, said. “The integration of Personal Video Recording capability is also creating growth opportunities.” 

In-Stat research titled “The Digital Set Top Box Market: Global Demand Remains High” finds that the overall digital set top box market grew from 37 million units in 2001 to nearly 190 million units in 2008.

According to the research, worldwide digital set top box product revenue was $18 billion in 2008.

However, the growth turned mixed across STB markets in 2009, with cable set top box shipments declining, while satellite, IP and digital terrestrial segments continued to see unit growth. 

IP STB shipments to Telco TV service providers are slowing down as Telco TV subscriber growth matures and moderates, In-Stat officials said. 

The year 2009 is also marked as the year of transition for digital terrestrial television, or “DTT,” set top boxes. The completion of the analog switch-off in the United States occurred in June 2009, creating a ‘substantial bubble’ for DTT shipments in 2008 and early 2009. 

Citing another research from In-Stat, DTT STB shipments fell drastically, by more than 35 percent, during the second quarter 2009, compared to the previous quarter.

In-Stat further found that the DTT STB shipment in United States is likely to plummet in 2010. However, growth in DTT shipments to Europe will partially offset the declining sales in the United States. 

The research analyzes the global digital set top box market, with detailed analysis of set top box technology and market trends and how they are shaping current product development. It gives forecasts for four digital set top box markets: cable, terrestrial, satellite/DTH, and IPTV (News - Alert).

Also included in the study are identification of key silicon suppliers for digital set top boxes and a discussion of STB semiconductor opportunities, In-Stat officials said.