2014 Web-enabled Set-Top Market Pegged at $1.3 Billion

SCOTTSDALE, ARIZ.: In-Stat says the future set-top box market will be dominated by devices that connect TVs to the Internet. Market value for the hybrid boxes is projected to be $1.3 billion in four years.

“TV programs have come to the Internet,” In-Stat’s Gerry Kaufhold said. “Now, the Internet is coming back to TV, and savvy software engineers and smart TV producers are finding ways to create new hybrid services that bring it all together. The set-top box industry is scrambling to create designs that facilitate all these new features.”

In-Stat found that such hybrid set-tops are shipping now, but few use the Web-connecting capabilities. It predicts that digital terrestrial set-tops (such as those used by the U.K.’s Freeview and Sezmi in the United States) will lead the way with 42 percent compound annual growth between 2010 and 2014. Western Europe will lead early shipments.

“Intel’s x86 Instruction Set promises to be a key enabler, as Adobe Flash, Windows Media, Microsoft Silverlight, DiVX, and VP8 appear first on an x86 Instruction Set,” In-Stat said.