Global digital media adapter (DMA) shipments are set to grow by around 40% in 2013 before the market doubles in size by 2017 Futuresource Consulting reports.
2012 DMA shipments total 13 million units.
"Fueled by the continued success of Apple TV, the rise of Roku and underlying demand for devices that carry key content services like Netflix and Hulu Plus, we're going to see healthy market growth continue for some years to come," the analyst remarks.
With 15% 2012 shipment share W. Europe is the 3rd largest DMA market in the world, following the US (50%) and China (17%). Futuresource forecasts W. European shipments will grow at 7% CAGR through to 2017.
"DMAs have traditionally been a difficult sell, as vendors and retailers have been unable to convey a simple message about the features and benefits," Futuresource continues. "However, with the rise of connected TVs we expect the concept of a device which upgrades an old TV to become a connected TV to gain some traction."
The streaming of personal media files between devices remains the chief driver for DMA purchase, but emphasis is increasingly shifting towards online media streaming thanks to growing broadband speeds and greater availability of Video on-demand services.