SET TOP BOX (STB) CHIPSET MARKET ANALYSIS

Global set top box (STB) chipset market is estimated to be valued at US$ 5,513.6 Mn by 2030.

A set-top box (STB) is a hardware device that receives a digital signal, decodes it, and presents it on a television screen. This process necessitates the use of a computing device capable of converting digital signals to analog signals. Consequently, the set-top box contains an embedded chipset that performs this conversion. The chipset comprises memory, input and output ports, and secondary storage. The set-top box is composed of a System on Chip (SOC) and front end chips. The SOC contains digital, analog, or mixed signals depending on the specific requirements. The front end section of the set-top box is responsible for receiving the transmitted signal, demodulating it, and providing a digital data output for the set-top box's decoder chip. Depending on the broadcasting environment, whether terrestrial, satellite, or cable, specific front end chips are utilized. Global set top box (STB) chipset market is expected to witness significant growth during the forecast period (2023–2030), owing to the integration of artificial intelligence (AI) technology into set top box chipsets. Rising awareness regarding internet-based set top boxes such as IPTV (Internet Protocol Television) is expected to boost demand for set top box chipsets. For instance, in December 2020, MediaTek Inc., a Taiwanese fabless semiconductor company that provides chips for wireless communications, high-definition television, handheld mobile devices joined 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.

With the help of the ultra HD standard, to offer high-quality content it is expected to drive the market growth. For instance, in January 2021, Amlogic, Inc., a fabless semiconductor company, announced the partnership with Skyworth Digital, a China-based company that manufactures 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 market growth. 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. Global Set Top Box (STB) Chipset Market: Regional Insights

In 2022, t Asia Pacific region had a strong presence in the industry, with the largest market share of over 45% of total revenue, owing to  increasing consumption of media and entertainment content, particularly among the middle-class population in the region. The industry is benefiting from growing demand for technologically advanced solutions that offer high quality, functionality, and affordable pricing. Market players such as Kaonmedia Co. Ltd. and Huawei Technologies Co., Ltd. are incorporating the latest technologies such as Bluetooth, motion sensors, and Virtual Reality (VR) into their products.

From 2023 to 2030, North America is also projected to experience significant growth, with a notable compound annual growth rate (CAGR). The market in this region is relatively saturated as most households already have these devices installed in their homes. North America serves as a prominent hub for emerging Internet-based set-top boxes (STBs) such as IPTV and OTT that offer customizable configurations and high-quality video and sound content transmission. Increasing presence of global OTT service providers like Netflix, Star TV Network, and Amazon Prime Video is expected to drive the market growth in North America.

Figure 1. Global Set Top Box (STB) Chipset Market Share (%), By Region, 2022

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Global Set Top Box (STB) Chipset Market- Impact of Coronavirus (COVID-19) Pandemic

Globally, most of the countries were affected by COVID-19, and had implemented lockdown. COVID-19 has significantly disrupted almost all the industries including electronics & semiconductor, automotive, manufacturing, media & entertainment, and others. The Covid-19 pandemic affected the Set Top Box (STB) Chipset market negatively. It Led to a global shortage of chipsets and supply chain disruption. Certain companies in the market have commenced operations again, and they are encountering difficulties in swiftly ramping up production capacity while also recovering from the previous setbacks caused by the temporary halt in 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 resulted in demand variation for set top box SoC chipsets.

Global Set Top Box (STB) Chipset Market- Drivers

Integration of 5G and Wi-Fi Connectivity in Set Top Boxes

The integration of 5G and Wi-Fi connection in set-top boxes has provided customers with new video experiences that feature low latency, fast speed, and high reliability. Furthermore, the integration of connectivity in set-top boxes provides high speed and 4K UHD video service with rich video content. For instance, in February 2022, ZTE Corporation, a provider of telecommunications, enterprise, and consumer technologies solutions, announced the launch of a 5G media gateway set-top box (STB) ZXV10 at the upcoming Mobile World Congress 2022 in Barcelona, Spain. This set-top box offers customers fast speed and connectivity.

Improvement in Content Technology such as 4K, High Definition, and Others

Advanced technology such as 4K in TV has gained popularity as customers seek ultra-high definition visual quality. Such TVs require a 4K set top box that requires more processing power than an HD or full HD set top box. As a result of the growing customer demand, numerous set-top box chipset makers are launching 4K chipsets. For instance, in November 2020, HiSilicon (Shanghai) Technologies Co., Ltd., a semiconductor design company, announced the launch of next-generation 4K and 8K chipsets with CUVA HDR, AVS2, AVS3, 3D Audio, and China DRM technical standards for STB. Global Set Top Box (STB) Chipset Market- Opportunities

Integration of Artificial intelligence (AI) in Set Top Box Chipset

Integration of Artificial intelligence (AI) in consumer electronics products such as AI set top boxes, AI Smart displays, and others is expected to offer growth opportunities for the global set top box (STB) chipset market. AI integration in set top boxes allows consumers to search content and change channels with voice. AI feature in set top boxes minimizes power consumption in standby mode, and provides a responsive experience.

For instance, in January 2020, Synaptics Incorporated, a manufacturer of human interface technologies, launched the VideoSmart VS600 series of high-performing multimedia System on a Chip solution that integrate a Neural Processing Unit (NPU), Graphics Processing Unit (GPU), and Central Processing Unit (CPU) into a single software-enriched SoC. The VS600 series is intended primarily for a new generation of set-top-boxes, smart cameras, smart displays, voice-enabled devices, video sound bars, and upcoming computer vision IoT products.

Integration of Gaming and Fitness Feature in Set Top Box

The integration of gaming and fitness features in set-top boxes is is expected to offer growth opportunities. Gaming applications are offered via STBs via cloud gaming providers such as Google Stadia and Tencent Games. Cloud gaming requires STBs that support video, command streaming, and low latency features.  Additionally, the surge in fitness applications being accessed through set-top boxes (STBs) aligns with the COVID-19 pandemic, which has prompted a significant number of individuals to engage in home-based exercise routines. These factors are driving the expansion of the worldwide market for set-top box (STB) chipsets.

Global Set Top Box (STB) Chipset Market- Trends

Reducing Nanometer in Chipset

Rising trend of reducing nanometer in chipsets as reducing nanometer in chipsets projects provides higher performance and efficiency is expected to drive the market growth. Increasing number of transistors in chipsets allows fast processing in set top boxes. For instance, IBM, a U.S.-based multinational technology corporation, offers 2 nm semiconductor chip design. This new chip is projected to achieve 45% higher performance and 75% lower energy.

Growing Demand for Set-Top Box Chipsets Driven by the Surging Popularity of OTT Services

Increasing preference for over-the-top (OTT) services such as Netflix, Amazon Prime Video, and Hulu is boosting the need for set-top box chipsets that can effectively deliver these services to televisions. Chipset manufacturers are actively working on developing solutions that ensure seamless streaming, incorporate content recommendation algorithms, and offer user-friendly interfaces for convenient access to OTT content.

Global Set Top Box (STB) Chipset Market- Restraints

High Volatility in Raw Material Prices

Set top box chipset manufacturers uses semiconductors such as silicon and others. Set top box chipset manufacturers rely on raw materials that are imported from other countries and thus, manufacturer faces price fluctuations that are influenced by shifts in the exchange rates and market fluctuations. Therefore, fluctuating costs of raw materials result in manufacturing interruptions and delays, and this is expected to hamper the market growth. For instance, in March 2020, according to Semiconductor Industry Association, the worldwide sales of semiconductors projected a negative growth of 0.3% in 2020 from 2019, As a result of the prevailing global trade tensions and persistent apprehensions surrounding the global transmission of the coronavirus, there exists a potential limitation on the sustained recovery of the market.

Increasing Use of Streaming Video Services

Increasing consumer’s preference towards streaming video services such as Netflix, Hulu, Prime Video, HBO Now, Disney+, and video streaming boxes and devices has hampered the market growth. These services and devices do not require a set top box from a paid TV service providers. Furthermore, live sports streaming services such as ESPN, NFL, and others have launched their service with monthly subscription without set top box connections.

Figure 2: Global Set Top Box (STB) Chipset Market Share (%), By Application, 2022

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Global Set Top Box (STB) Chipset Market- Segmentation

Global Set Top Box (STB) Chipset Market  report is segmented into node size, application, content quality,  type, and region.

By Node Size: 22 nm, 28 nm, 40 nm, 65 nm, and 90 nm

By Application: Satellite STB, Cable STB, IPTV STB, and Others

By Content Quality: Standard Definition, High Definition, and 4K and Above

By Type: Front-end Chips and SoC Chipsets

Global Set Top Box (STB) Chipset Market: Key Developments

Major market players are focusing on product launches, in order to enhance their product portfolio.

For instance, in February 2022, ZTE Corporation, a provider of telecommunications, enterprise and consumer technologies solutions, announced the launch of a 5G media gateway set-top box (STB) ZXV10 at the upcoming Mobile World Congress 2022 in Barcelona, Spain. This set-top box offers customers fast speed and connectivity.

For instance, in November 2020, HiSilicon (Shanghai) Technologies Co., Ltd., a semiconductor design company, announced the launch of next-generation 4K and 8K chipsets with CUVA HDR, AVS2, AVS3, 3D Audio, and China DRM technical standards for STB.

In March 2020, As stated by the Semiconductor Industry Association, the global sales of semiconductors are anticipated to experience a decline of 0.3% in 2020 compared to the previous year. This downturn can be attributed to the prevailing global trade tensions and persistent concerns regarding the worldwide transmission of the coronavirus, which have the potential to impede the ongoing recovery of the market.

In January 2020, Synaptics Incorporated, a manufacturer of human interface technologies, launched the VideoSmart VS600 series of high-performing multimedia System on a Chip solution that integrate a Neural Processing Unit (NPU), Graphics Processing Unit (GPU) and Central Processing Unit (CPU) into a single software-enriched SoC. The VS600 series is intended primarily for a new generation of set-top-boxes, smart cameras, smart displays, voice-enabled devices, video sound bars, and upcoming computer vision IoT products.

In October 2020, Amlogic Inc., a semiconductor company, launched First Media’s new 4K Android TV set-top box (STB) that is associated by Amlogic’s S905X2 system-on-chip (SoC) and TVSTORM’s Widevine CAS based head-end solution.

Global Set Top Box (STB) Chipset Market: Key Companies Insights

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.

*Definition: Global set-top box chipset market refers to the industry that encompasses the production, distribution, and sale of semiconductor chipsets specifically designed for set-top boxes (STBs). Set-top box chipsets are integrated circuits that power the functionality and performance of STBs, which are devices that are used to receive and decode television signals for display on a television set.