DTV market compound annual growth rate for the next 5 years will be 15%

According to IHS iSuppli, after Japan completed the transition from analog to digital television (DTV) in July, DTV's growth opportunities are shifting to developing countries, and these countries are still basically using analog TVs.

According to the following figure, of the global TV shipments in 2011, it is expected that 45.8% will still be analog TVs, and the remaining 54.2% will be digital TVs. However, as more and more regions shift to DTV, the share of analog TVs will drop to 23.3%, while the share of digital TVs will rise to 76.7%.

North America, most of Western Europe, and Japan have all completed the transition from analog to digital, signifying that most major developed countries in the world have completed this transition. However, from a global perspective, this shift is far from complete. In the next four years, the transition to digital television will take place in emerging regions such as Latin America, China and the Asia Pacific region. Therefore, virtually all DTV sales growth will come from these developing economies.

Some factors continue to drive the global market toward digital television broadcasting, including image quality improvement and consumer-selectable content additions. Other factors include the increase in the number of high-definition content, which requires the adoption of new technologies to achieve more efficient and higher-quality dissemination. However, the most important factor in promoting the transition of digital television is the redistribution of spectrum occupied by analog television can generate revenue.

The use of digital reception in televisions has been an important growth area for the television semiconductor market in the past decade. Most digital TVs now integrate digital tuner, demodulator, and decoder functions that were previously implemented with separate digital set-top boxes.

However, TV video processor vendors have moved quickly to integrate many of the above functions into large-scale system-on-a-chip solutions. As a result, the cost of implementing digital TV has dropped significantly over the past five years.

After the transition to digital television, followed by the era of smart TV, all major TV OEMs are providing new features and functionality through the Internet. IHS expects that the transition from digitization to intelligence will create similar opportunities for the semiconductor supply chain of television as the previous digital transformation.

It is expected that the compound annual growth rate of the global DTV market will be 15% from 2010 to 2015, and the shipment volume in 2015 will reach 245.9 million units.