OYSTER BAY, N.Y.--Here's one digital chip market that will grow like a weed over the next six years. The global market for digital broadcast systems and equipment will shoot up at a compound annual growth rate of 43% between 1999 and 2005, according to Allied Business Intelligence Inc. (ABI) here.
The worldwide penetration for all digital broadcasting services by the end of this year will be only 2.5% of all households, ABI says. But by 2005, this penetration will rise to 21%, it says. Because of Direct Broadcast Satellites (DBS), household penetration in the U.S. already has hit 16% and will increase to 60% by 2005, the market researcher says.
There are now more than 1.4 billion TV sets in the world, including 250 million in the U.S., but the transition to digital TV is going to take some time due to a lack of content, cost, signal receptions, and compatibility, the research outfit says. By 2005, it predicts, 15% of all new TV set sales will be digital models.