SKYWORTHDT(SZ:000810) Chan Ye Xin Xi Wang·2025-05-06 01:26Core Viewpoint - The set-top box is evolving into a central hub for home entertainment, information, and smart living, driven by the increasing demand for high-quality living and the integration of advanced technologies like 5G and AI [1][15]. Industry Overview - The Chinese set-top box shipment volume is projected to grow from 68.48 million units in 2019 to 83.86 million units in 2024, with a compound annual growth rate (CAGR) of 4.14% [1][15]. - Set-top boxes are categorized into digital TV set-top boxes and network TV set-top boxes, with digital TV set-top boxes accounting for approximately 21.9% of the total shipment volume in China [1][15]. Industry Development History - The digital TV set-top box industry in China began with technology imports from 1999 to 2005, followed by explosive growth from 2006 to 2012 due to policy support [5]. - From 2013 to 2018, the market faced transformation pressures with the rise of smart set-top boxes, leading to a decline in traditional set-top box market share [5]. - Since 2019, the industry has been transitioning towards smart home integration, with 4K/8K ultra-high-definition and VR/AR support becoming standard features [5]. Industry Chain - The upstream of the digital TV set-top box industry includes suppliers of raw materials such as chips and PCBs, with chips accounting for over 50% of the procurement cost [7]. - The downstream market primarily serves telecom operators and retail consumers, including major domestic telecom operators and TV operators [7]. Chip Production - China's chip production is expected to grow from 108.72 billion units in 2015 to 451.42 billion units in 2024, with a CAGR of 17.14% [8]. - The first quarter of 2025 is projected to see a year-on-year growth of 11.59% in chip production [8]. PCB Market - The PCB industry in China is projected to reach a market size of approximately 412.11 billion yuan by 2024, positively impacting the digital TV set-top box industry [10]. User Base Growth - The number of cable digital TV users in China is expected to reach 201 million by 2024, representing a year-on-year growth of 3.61% [12]. Current Industry Status - The global set-top box market is projected to grow from $14.02 billion in 2021 to $16.23 billion by 2028, with a CAGR of 2.11% [14]. - The increasing adoption of smart home concepts is driving demand for set-top boxes, which are becoming essential for modern households [14]. Competitive Landscape - The digital TV set-top box industry in China features a diverse competitive landscape, with companies like Skyworth Digital, Galaxy Electronics, and Jiuzhou Electric leading the market [18]. - Skyworth Digital is recognized as a leading enterprise, offering a complete ecosystem from hardware to services [19]. Future Trends - Set-top boxes are expected to evolve into multifunctional home entertainment hubs, integrating services like video calls and smart home control [25]. - Major manufacturers will focus on building open platform ecosystems, enhancing user engagement through integrated services [26]. - AI technology will reshape interaction and content distribution, enabling personalized content recommendations and enhancing user experience [28].