Euroconsult and NPA report that the high definition television market in Europe is set to take off from today's 59 million European households with HDTV television to 116 million in 2010 and over 200 million by 2018.

The report 'HDTV in Europe, Key Economics and Prospects to 2018' says that driving this adoption is the steady decline in prices for flat screens since 2004, and the imminent inclusion of HDTV capability as a standard feature in flat screens sold throughout Europe.

"To date, HDTV in Europe has been a series of trials and early services," said Jean Emmanuel Casalta, Managing Director at NPA. "But higher penetration of HD-enabled flat screens in Europe will help drive growth in the next ten years."

A growing number of European households can receive high definition content, another critical factor for market growth. The number of pay-TV networks in Europe offering HD almost tripled in the last two years. While satellite HD services still dominate HD subscriptions, cable and IPTV services are accelerating their introductions of HD offerings.

And while satellite free-to-air may remain the only option in several countries in the short term, a major European 'first' occurred with the 2008 launch of a multi-channel HDTV offer over digital terrestrial television (DTT) in France.

Meanwhile in 2008 the number of HD channels distributed in Europe more than doubled to 130 channels. Over 600 HD channels should be distributed in Europe in 2013.

"Pay-TV reception will drive growth of HDTV adoption in Europe in the short term, despite the current economic downturn.

"In 2013, over 38 million households should receive HD pay-TV services, twice the number of households watching HD free-to-air only. From 56 million in 2013, the number of households receiving HD will boom to over 175 million households in 2018, making from HD the standard TV experience in most Western and Central European markets," indicated Pacome Revillon, Managing Director at Euroconsult.

In the short term, Euroconsult and NPA expect providers to use HD as a strategic differentiator to gain and retain audiences and subscribers. This will be particularly acute in a market increasingly characterized by competition between established and emerging market players, and accentuated during this time of economic downturn.