by Set top box (STB) chipset converts signals from different broadcasting platforms into TV or audio signals for viewing. STB chipsets facilitate accessing on-demand entertainment services, smooth streaming of high-definition content and offers integrated connectivity with smart home devices. With increasing adoption of internet protocol television (IPTV) and shift towards streaming platforms, STB chipsets play a pivotal role in enabling access to myriad content choices.
The global Set Top Box (STB) Chipset Market is estimated to be valued at US$ 23.5 billion in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Integration of artificial intelligence (AI) in set-top boxes is one of the key trends witnessed in the STB chipset market. AI-enabled STBs analyze user preferences, recommend tailored content based on viewing history and enable personalized search and discovery experience. AI makes content navigation effortless for users. Furthermore, STB chipsets are optimized to support high-performance video encoding and decoding standards such as HEVC (H.265) to ensure transmission of high-quality content across networks. HEVC is widely adopted as it provides more efficient compression compared to earlier codecs. In addition, deployment of 5G networks is anticipated to surge IPTV subscriptions and boost demand for advanced STB chipsets that leverage high-speed connectivity and superior streaming experience. Increased investments by telecom operators and governments in fiberization of networks also augur well for STB chipset suppliers.
Porter’s Analysis
Threat of new entrants: Low barrier to entry allows new players to enter the market easily. However, established players hold a major market share which acts as a deterrent for new entrants.
Bargaining power of buyers: Large OEMs have significant bargaining power over chipset manufacturers due to their high purchase volumes. This forces manufacturers to offer competitive pricing and additional services.
Bargaining power of suppliers: A few large semiconductor foundries dominate the supply market. This gives them control over pricing and supply. Chipset manufacturers have to rely on these suppliers.
Threat of new substitutes: No direct substitute exists for STB chipsets currently. However, alternatives like streaming sticks could evolve as substitutes in the future.
Competitive rivalry: The global STB chipset market is highly fragmented with the presence of numerous global and regional players. Intense competition exists based on pricing, product differentiation, and customer relationships.
Key Takeaways
The Global Set Top Box (STB) Chipset Market Size is expected to witness high growth over the forecast period of 2024 to 2031.
Asia Pacific dominates the market currently due to strong presence of consumer electronics brands and consumers. China holds the largest share in the region supported by government initiatives for digitization.
Key players operating in the Set Top Box (STB) Chipset market are Broadcom, STMicroelectronics, Intel, ALi Corporation, NXP Semiconductors, Samsung, and MediaTek. Broadcom leads the market with over 30% share owing to its extensive product portfolio and partnerships with large OEMs. MediaTek is also a major player focusing on emerging markets through solutions offering.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
