Home media gateway market set to ramp
Joseph O'Halloran | 12-11-2013
Even though current unit shipments continue to be relatively modest, demand for home media gateways is projected to be on the point of rising significantly, research from MRG projects.
Indeed in its latest report, ‘Demand for Home Media Gateway Set-Top Boxes on the Upswing’, the SNL Kagan company forecasts that shipments of home media gateway products — typically featuring multi-room personal video recording, streaming IP video, and support for multiscreen video and TV everywhere — will surpass 24 million by 2017. This would represent impressive growth from the end of 2013 when such global unit shipments are on track to reach nearly ten million, a solid increase says MRG from the 7.7 million units that shipped in 2012.
Making this more impressive is the fact that such devices usually carry high ASPs, around $300 per box, which generally limit their penetration to the high income household regions of the world. MRG predicts that up until 2015 virtually all home media gateway product deployments will be confined to North America and Europe.
This notwithstanding, MRG calculates that the growing home media gateway market will generate revenues reaching nearly $3 billion in 2013, up from $2.3 billion in 2012.
“Unit shipments of home media gateway products are on track to grow rapidly,” commented MRG senior analyst Mike Paxton. “However, the product segment is currently just a small portion of the worldwide set-top box market. For example, in 2013 home media gateway product shipments are projected to account for just 4% of total set-top box unit shipments.”