Although the US is still by far the largest market for DVRs, with nearly 12 million units shipped in 2007, uptake in Europe is gaining momentum. IMS Research estimates that in 2007, the DVR market in Europe grew by 87%, reaching 6 million units shipped in 2007. Asia Pacific accounted for an estimated 1.4 million units in 2007 and is forecast to see the strongest compounded annual growth over the next five years.

Based on a new study on the Worldwide Market for DVRs, IMS Research forecasts the worldwide DVR market at 95.6 million units shipped in 2013, of which Europe is expected to account for 34%. Shipments in North America are forecast to make up a similar share that year. Anna Hunt, Research Director at IMS and report author states, “One of the key drivers behind DVR rollouts in Europe has been satellite’s response to competition from digital cable and IPTV.” She adds, “Now that many European consumers know what a DVR is, we can expect word-of-mouth to propel significant growth over the next five years.” As of late 2008, most leading pay-TV operators in Europe were offering a DVR service. IMS Research forecasts that by 2013, about 103 million European TV households will be using a DVR set-top box.

Some of the other drivers in the DVR market include:

• Attractiveness of time-shifting capability, which was consistently identified by interviewed operators as a key feature attracting subscribers to DVR service.
• More options in DVR box models, with over 30 set-top box suppliers shipping significant volumes in 2007. That is double than just two years ago, and likely to increase to 50+ by 2009.
• Consumers need for an effective content management tool, considering the increasing number of channels offered to viewers.