Set top box (STB) is a hardware device, which receives a digital signal, decodes the signal, and displays it on a television. This process requires a computing device, which can convert digital signal to analog signal. Therefore, chipset is embedded in the set top box. This chipset consists of memory, input & output ports, and secondary storage. Set top box consists of System on chip (SOC) and front end chips. System on chip (SOC) contains digital signals, analog signals or mixed signals based on the requirement. Front end part of set top box is responsible for receiving the broadcasted signal, demodulating the signal and outputting digital data output for set top box decoder chip. Depending upon broadcasting environment terrestrial or satellite or cable, front end chips will be used.
The global set top box (STB) chipset market is expected to witness significant growth during the forecast period (2021–2028) owing to the integration of artificial intelligence (AI) technology into set top box chipsets. Additionally, rising awareness of the internet-based set top boxes, such as IPTV (Internet Protocol Television), is driving the demand for set top box chipsets. For instance, in December 2020, MediaTek Inc. established MLCommons, an engineering consortium company, in partnership with technology companies such as Google, Microsoft, Facebook, Alibaba, and others to enhance artificial intelligence standards in chipset development.
Support of the ultra HD standard to offer high-quality content is expected to drive the market growth. For instance, in September 2016, Qualcomm Technologies, Inc. launched two solutions for home entertainment, the QCA9379 combo chip for dual-stream Wi-Fi 802.11ac and Bluetooth 4.2 and a 4K Ultra HD media box reference platform by using Qualcomm Snapdragon 820 processor. These solutions are specially designed to provide interactive and engaging media experiences in upcoming streaming devices, set top boxes (STPs), and smart TV products. Also, in January 2021, Amlogic, Inc. announced partnership with Skyworth, a China-based company who is engaged in the manufacturing of STBs. Through this partnership, Amlogic, Inc. and Skyworth developed Ultra HD set top boxes (STBs) with Amlogic’s latest S905X4 chipset.
Cord cutting practice is one of the major factor restraining the growth of the set top box chipset market. Cord-cutters have a wide variety of streaming services and video streaming boxes that do not require a set top box from a pay-TV service provider, which is hampering the demand of set top box chipsets.
Global Set Top Box (STB) Chipset Market - Impact of Coronavirus (Covid-19) Pandemic
Globally, most of the countries are affected by COVID-19 and most of the countries have announced lockdown. COVID-19 has significantly disrupted almost all the industries including, electronics & semiconductor, automotive, manufacturing, media & entertainment, and others. Some companies in the market are formally resuming work and are facing challenges to increase production capacity in a short period of time and make up for the previous losses due to shutdown of manufacturing activities. COVID-19 has a significant impact on the supply-side as well as the demand side of the semiconductors industry. Slowdown in production by set top box manufacturers due to COVID-19 crisis has resulted in demand variation for set top box SoC chipsets.
Asia Pacific held dominant position in the global set top box (STB) chipset market in 2020
Asia Pacific held dominant position in the global set top box (STB) chipset market in 2020, accounting for 39.8% share in terms of value, followed by Europe and North America.
|Base Year:||20120||Market Size in 2019:||US$ 3,447.7 Mn|
|Historical Data for:||2017 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2020 to 2027 CAGR:||5.3%||2027 Value Projection:||US$ 5,108.8 Mn|
Amlogic, Inc., ALi Corporation, Marvell, Zhuhai Allwinner Technology Co., Ltd., Broadcom Inc., Socionext Inc., HiSilicon (Shanghai) Technologies Co., Ltd., Pixelworks Inc., Novatek Microelectronics Corp., Rafael Micro, STMicroelectronics, Renesas Electronics Corporation, Synaptics Incorporated, Qualcomm Technologies, Inc., TELECHIPS INC., Sony Corporation, MaxLinear Inc., MediaTek Inc., Silicon Laboratories, AVAILINK, INC., MStar Semiconductor Inc., SOLUM Co., Ltd., Hangzhou Nationalchip Science & Technology Co, Ltd., and AltoBeam Inc.
|Restraints & Challenges:||
Figure 1: Global Set Top Box (STB) Chipset Market Share (%), By Region, 2020
Asia Pacific is expected to account for the largest market share during the forecast period, owing to the high presence of key players such as ALi Corporation, Zhuhai Allwinner Technology Co., Ltd., Socionext Inc., Novatek Microelectronics Corp., Rafael Micro, Renesas Electronics Corporation, and Sony Corporation. For instance, in January, 2019, ALi Corporation launched next-Generation STB Chipset F8 Series in Indian market. F8 is designed as the cost-effective solution for operators which offers good performance, with advanced security architecture compliant with world-leading tier 1 conditional access system (CAS) standards.
Also, Asia Pacific is expected to be the fastest growing region in the global set top box (STB) chipset market over the forecast period owing to the increase in development in media & entertainment industry in the region. According to India Brand Equity Foundation (IBEF), media and entertainment (M&E) industry in India exhibited a CAGR of 10.9% from year 2017 to 2018 and is expected to exhibit a CAGR of 13.1% to reach US$ 39.7 billion by 2023 from US$ 22.3 billion in 2018.
Cable STB segment is expected to drive the market growth during the forecast period
Among application, Cable STB segment is expected to hold dominant position in the global set top box (STB) chipset market during the forecast period. The segment was valued at US$ 1,107.7 Mn in 2020, and is expected to generate a revenue of US$ 1,645.0 Mn by 2028. This segment is expected to exhibit a CAGR of 5.3% over the forecast period (2021 to 2028).
Figure 2: Global Set Top Box (STB) Chipset Market Value (US$ Mn) Analysis and Forecast, 2017 - 2028
The global set top box (STB) chipset market was valued at US$ 3,447.7 Mn in 2020 and is expected to reach US$ 5,108.8 Mn by 2028 at a CAGR of 5.3% between 2021 and 2028.
Major players operating in the global set top box (STB) chipset market include Amlogic, Inc., ALi Corporation, Marvell, Zhuhai Allwinner Technology Co., Ltd., Broadcom Inc., Socionext Inc., HiSilicon (Shanghai) Technologies Co., Ltd., Pixelworks Inc., Novatek Microelectronics Corp., Rafael Micro, STMicroelectronics, Renesas Electronics Corporation, Synaptics Incorporated, Qualcomm Technologies, Inc., TELECHIPS INC., Sony Corporation, MaxLinear Inc., MediaTek Inc., Silicon Laboratories, AVAILINK, INC., MStar Semiconductor Inc., SOLUM Co., Ltd., Hangzhou Nationalchip Science & Technology Co, Ltd., and AltoBeam Inc.
The set top box is a hardware device which receives a digital signal and convert that signal into analog single using onboard chipsets. The analog signal is further transmitted to TV as input signal. The chipset consists of various components include memory, input & output ports, and secondary storage.
The global set top box chipset market is segmented no the basis of node size, application, content quality, type, and region. Based on the node size, the market is further segmented into 22 nm, 28 nm, 40 nm, 65 nm, and 90 nm. On the basis of application, the global set top box chipset market is segmented into satellite STB, cable STB, IPTV STB, and others. On the basis of content quality the market is segmented into Standard Definition, High Definition, and 4K and above. On the basis of type the market is segmented into front-end chips and SoC chipsets.
The global STB chipset market is rapidly growing owing to the increasing adoption of advanced technology such as 4K and others. The 4K technology is rapidly gaining popularity in past couple of years owing to the better picture and video quality offered by the 4K TVs. According to the Coherent Market Insights’ analysis, it is expected that there will be more than 58% adoption of 4K TVs in the U.S. alone by 2021. This TV requires 4K set top box that needs higher processing capacity than HD or full HD set top box. Thus, considering the increasing demand from consumers many set top box chipset manufacturers are launching 4K chipset. For instance, in September 2018, Synaptics Incorporated launched VideoSmart BG5CT multimedia solution featured with 4K Advanced HDR video processing for the set-top-box market. The BG5CT integrates a 1.6 GHz 15K DMIPs Quad Core ARM CPU, 2.8 GPixel per second GPU, and other techniques to enable set top box manufacturers to deliver entertainment and gaming services to their subscribers.
Furthermore, many key players in the market are focusing on establishing partnerships with set top box manufacturers and digital service provider in order to develop set top box chipsets. In January 2021, Amlogic, Inc. announced partnership with Skyworth, a China-based company who is engaged in the manufacturing of STBs. Through this partnership, Amlogic, Inc. and Skyworth developed Ultra HD set top boxes (STBs) with Amlogic’s latest S905X4 chipset.
The set top box chipset manufacturers are constantly adopting advanced technologies such as 5G, Wi-Fi 6 in order to provide high quality products to the consumers. For instance, in October 2019, Broadcom Inc., a US based chipset manufacturing company launched BCM6710, a 3x3 Wi-Fi 6 chip designed for WLAN applications such as set-top boxes, Wi-Fi routers, and others. The company also offer BCM7218X, an ultra-High-Definition TV (UHDTV) with HDR 10-bit chipset with Wi-Fi 6 technology.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.