Communications market research firm Infonetics Research reported today that the combined IPTV and switched digital video (SDV) equipment market increased 12 per cent sequentially to $1.3 billion worldwide in Q108.

Infonetics’ report, IPTV and Switched Digital Video Equipment, Services, and Subscribers, indicates revenue growth is being driven by growing numbers of service providers rolling out new IPTV networks or expanding existing networks to support more subscribers. The market is also getting a push from cable MSOs introducing switched video capabilities into their digital TV networks to free up bandwidth and offer more HD content to their subscribers.

“While most of the segments we track in the IPTV market are seeing consistent quarterly growth, IPTV middleware is going to be an especially interesting segment to watch. We’re expecting an IPTV middleware spending spree over the next few quarters because a lot of the early IPTV service providers are running into scaling issues with their off-the-shelf middleware. Those providers are going to have to replace their IPTV middleware with a more robust solution to replace or augment their first-generation deployments. Middleware issues are one of the main root causes of IPTV rollout delays, so early hiccups have to be addressed quickly,” said Jeff Heynen, directing analyst for IPTV at Infonetics Research.

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