Set top boxes (STBs) are information appliances or digital media receivers which allow users to access digital television and broadcasting media through a digital television set or other display device. The STB enables viewing of digital television broadcasts on analog television sets. It decodes digital broadcast streams and converts them into analog signals suitable for display on analog televisions and transforms digital cable TV, digital terrestrial TV (DTT) or IPTV broadcast signals into content that can be displayed on the TV screen or other display device. The global set top box chipset market was valued at US$ 3,829.99 billion in 2023. STBs are used in cable, satellite and digital terrestrial television setup boxes to receive digital video and audio signals. They are used majorly for video processing and encryption to prevent content leakage.
The global Set Top Box (STB) Chipset Market is estimated to be valued at US$ 4,016 billion in 2030 and is expected to exhibit a CAGR of 5.2% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
Increasing Demand for High Definition (HD) Content is Expected to be Flourished by the Set Top Box (STB) Chipset Market. The growing demand for HD content is expected to drive the set-top box chipset market growth over the forecast period. Ultra-HD or 4K content requires a significant bandwidth for transmission and consumption. Therefore, STB manufacturers are focused on developing advanced chipsets that can efficiently decode and process high-bandwidth video signals. For instance, in January 2022, Sigma Designs launched a 4K UHD Android TV SoC for HD and ultra-HD IPTV set-top boxes. Such initiatives aiming at expanding the availability of high-definition content are expected to fuel the demand for advanced STB chipsets in the coming years. Another key driver of the STB chipset market is the increasing deployment of hybrid and advanced set-top boxes.
Segment Analysis
The set top box (STB) chipset market is dominated by the pay TV segment. STBs are utilized predominantly in pay TV platforms like cable, satellite, and IPTV to decode encrypted video content for viewing on television screens. More than 80% of the total STB chipsets are consumed by these pay TV operators as STBs integrated with encryption, decryption and secure processing capabilities form the backbone of their infrastructure and services.
PEST Analysis
Political: The regulations on the distribution and encryption of media content sometimes impact chipset suppliers. However, wider digitization drives adoption of STBs.
Economic: Slowing pay TV subscriber growth in developed markets impacts STB chipset demand. However, rising internet penetration worldwide drives online video consumption and low-cost 4G/5G connectivity boosts IPTV adoption benefitting the STB chipset market.
Social: Rapid urbanization and higher disposable income are increasing TV viewership and pay TV penetration in developing nations boosting demand. On-demand streaming culture is rising especially among millennials pushing integration of OTT apps on STBs.
Technological: Declining costs of smart TVs and rise of streaming devices challenge dedicated STBs and chipsets. However, advanced chipsets enabling premium 4K/8K resolution, HDR support, voice commands and multiscreen viewing are driving replacement cycles.
Key Takeaways
The Global Set Top Box (STB) Chipset Market Size is expected to witness high growth. The global Set Top Box (STB) Chipset Market is estimated to be valued at US$ 3829.99 Bn in 2023 and is expected to exhibit a CAGR of 5.2% over the forecast period 2023 to 2030.
Regional analysis comprises highest demand coming from Asia Pacific due to factors like rising digitization in countries like India driving adoption of STBs as primary method of viewing encrypted cable and DTH pay TV services.
Key players operating in the set top box (STB) chipset market are Global Self Storage Inc., U-Haul International Inc. (Amerco), Urban Self Storage Inc., Life Storage Inc., Amsdell Cos./Compass Self Storage, CubeSmart LP, All Storage, National Storage Affiliates Trust, National Storage REIT, Safestore Holdings PLC, (Great Value Storage) World Class Capital Group LLC, Simply Self Storage Management LLC, SmartStop Asset Management LLC, StorageMart, Metro Storage LLC, Prime Storage Group, and W. P. Carey Inc. Key players like Broadcom Inc., STMicroelectronics, TiVo (Xperi Corporation), ALi Corporation, and NXP Semiconductors are focused on integrating advanced features to drive replacement cycles.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it