According to ABI Research, the smart set-top box (STB) and dongle market will cross 18 million units in 2013 and is expected to grow at a compound annual growth rate of 10.8 per cent between 2013 and 2018.
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The research firm states that despite competition from connected CE devices, the STB and dongle market offers a compelling user experience at significantly lower price points. Markets such as Asia-Pacific and Latin America will drive the growth in the STB and dongle segment. Going forward, the market will be dominated by Google?s Chromecast device.
Michael Inouye, senior analyst, ABI Research, says, ?Google?s Chromecast device in particular sets a new low price bar for the connected CE market and as more applications are added to its library its value will continue to grow.?
ABI Research points out that the price of STB devices will also allow lower tier TV manufacturers to separate the connected TV component, keeping prices lower and enabling customers the option to upgrade the connected without replacing the TV or purchasing costly and proprietary upgrade modules.
