ABI Research predicts that more mergers are coming in the IP video market, leading to a smaller number of larger vendors providing all-encompassing IP network solutions, including video infrastructure.

In a new report, ABI says IP video vendors will move beyond the network aspect of video solutions to expand into the home with CPE and even home networking technologies. The research firm expects vendors to promote the idea that cable and telecom operators would prefer to work with a single company that can meet all of their needs, rather than picking and choosing equipment from multiple smaller vendors.

“As the technology has become more mainstream and IPTV subscriber numbers have increased, established equipment vendors have begun to enter the fray – often by acquiring the pioneering start-ups that once controlled the industry,” says Michael Arden, principal analyst of broadband and multimedia research for ABI, in a statement.

In the wake of Cisco Systems’ recent acquisition of Scientific-Atlanta, Motorola Inc.’s purchase of Kreatel, Tandberg Television’s planned purchase of SkyStream, and Thomson’s announced intent to buy Thales, ABI identifies HP, IBM, Nortel and Lucent as other newer players that may be looking to gobble up or team with IPTV specialists.

The firm also pegs smaller firms such as Orca Interactive, Kasenna, Bitband, Optibase, 2Wire, and Entone as attractive targets for acquisition.

But Arden warns that this new business model of end-to-end IPTV offerings will risk the creation of closed networks. He urges standards organizations to take action to ensure that all vendors “converge their respective technologies into standard platforms.”