According to IHS, the set-top box (STB) market in China is headed for decline as the market matures, though China will continue to export STBs in big numbers to less developed countries.
China's STB shipments are expected to decline to a projected 130.8 million units at the end of this year, down 12% from 148.6 million in 2012. The loss in 2013 is in contrast to the 20% gain in 2012, and shipments are expected to trend down in general during the next few years.
Both domestic and export STB markets counted a loss in shipments during the first half of 2013 compared to the same time last year, with the domestic cable and satellite STB segments encountering softness after the government ended financial incentives meant to encourage shopping among the Chinese.
The Chinese STB market will be difficult to crack, even for local aspirants, IHS believes. Players seeking to gain access to the Chinese STB market will find it hard to enter the tightly held space, currently controlled by the big names in China's STB industry that will leave little room for newcomers.