ID: MRFR/SEM/3177-CR | January 2019 | Region: Global | 100 pages
Market Research Future (MRFR) predicts the Global Set-Top Box Market size to reach a valuation of USD 26,630.4 Million with a CAGR of 7.2% from 2017-2023 (forecast period). Cable television sets require a digital device that decodes and converts a digital signal for viewing and flipping through a variety of channels. A set-top box is a device that makes this technology possible and helps viewers to watch television at ease. The technology that pertains to this device has advanced at a great pace. Apple, for example, has introduced 4k video upgrades to their set-top box. They will be complemented by both Dolby Vision and Dolby Atmos and will support HDR quality videos. According to Apple, about 100 different applications around the world have been created for Apple TV, the set-top box offered by Apple TV. This is the level to which the set-top box market experiences innovation and consistent consumer growth. Satellite Television is the most significant application of the set-top box industry, and this segment is projected to rise with the highest CAGR. One of the latest developments in satellite TV is the introduction of a show recording facility that enables viewers to record their shows in real-time and view them later, depending on their convenient times.
The COVID-19 outbreak has had a profound influence on the film production and exhibition industry; its impact on film distribution, TV broadcasters, and distribution platform operators has been comparatively less. Set-Top Box market growth has become variable by region, with some countries offering tremendous growth opportunities while others face closures and low-profit margins. In the medium to long term, the analyst expects the set-top box market to regain momentum, primarily with help from emerging markets.
High levels of technological innovations have contributed to the development of a wide range of STBs
Set-top box (STB) architectures are becoming more advanced with the inclusion of new features and content protection systems. The industry is witnessing a technological transition from providing stand-alone cable and satellite boxes to hybrid boxes integrated with over-the-top (OTT) IP-based services. As a result, traditional cable service providers offer advanced hybrid set-top box to their customers. Technology has played a crucial role in boosting the adoption of these devices over the last few years. The increasing awareness of Internet-based set-top boxes, like Internet Protocol Television (IPTV) and OTT, has further triggered the demand for products, more prominently across developing economies, with a substantial increase in the number of tech-savvy individuals.
Technological innovations have contributed to the growth of a wide variety of STBs with different features. This, in fact, has made the competition intense between the set-top-box companies. In addition, ZTE has announced that it will demonstrate its far-field 4K AI STB S200 that can work with voice commands. The S200 is an rolled into one home assistant with functionality such as IPTV/OTT services, smart speakers, home media sharing, home control, and home networking. Over-the-air DVR systems are a stand-alone set-top box that allows viewers to broadcast and record TV programs. In addition to DVRs, subscription-based TV service providers offer STBs to consumers. In addition, DISH, a US-based television provider, launched AI in its new set-top box.
Government regulations on the digitization of cable networks to boost the set-top box market growth
Stringent laws for the digitization of cable TV and the resulting migration of analog TV to digital TV have increased demand for STBs. As a result of the launch of high-resolution television sets, manufacturers and service providers have begun to offer HD set-top boxes in an attempt to meet the increasing demand for improved content quality among viewers. The proliferation of technology has allowed the production of a wide range of products with a variety of innovative features. As most of these boxes have storage capacities, customers have the flexibility to store and watch their favorite shows.
Over-the-top services are the most significant challenge facing the set-top box industry. Online streaming services like Netflix and Amazon have become popular among young people with ease of access and original content. Investment in bringing innovation to the set-top box experience is the way to overcome this challenge. For example, Huawei Technologies teamed up with Dolby Laboratories and launched the world's first Dolby vision-enabled set-top box that interested consumers.
Global Set-Top Box Industry has been segmented into Product Type, Content Quality, Services, and End-User.
Based on product type, the global set-top box market has been segmented into Internet Protocol (IP) TV, satellite, digital terrestrial television, cable, over-the-top content (OTT), and others.
Satellite Segment to Post the Highest CAGR
The satellite segment reported 27.8% in 2017, with a market value of USD 4.884.1 million. The segment is expected to report a healthy CAGR during the forecast period. Satellite Television is one of the most significant applications of the set-top box industry. One of the developments in satellite TV is the advent of a show-recording facility, which allows viewers to record their shows in real-time and replay them later, depending on their convenience.
India is a vast market for set-top boxes. In addition to a booming direct-to-home satellite business, the country is approaching the end of digitizing its cable TV system, an initiative that has seen a major upgrading of cable boxes around the country. For example, by the quarter ended in September 2019, India had around 69.30 million subscribers. As stated by the Telecom Regulatory Authority of India (TRAI), the highest subscriber base was also registered in 2019. The number of active subscribers registered in March 2019 was 72.44 million. In addition, satellite STB units are increasingly fitted with interactive features, such as video-on-demand, an electronic program guide, etc. More advanced units also offer a range of interactive and multimedia features directly via the user's television system like Internet browsing, email, and instant messaging, in addition to basic functionality. In addition, the industry is also witnessing the integration of OTT and IPTV. ZTE, for example, is about to introduce its 4K Hybrid STB for operators. This STB has been incorporated with IPTV and Google's ecosystem, with a broad variety of Google applications such as Google Music and Google Games, enabling users to access both IPTV and OTT services simultaneously.
Based on content quality, the global set-top box market has been segmented into High Definition, Standard Definition, and 4K.
A high-Definition segment to register a CAGR of 5.8% over the forecast period
In 2017, the high-definition segment accounted for 41.5% of the market share in terms of value. The segment is expected to experience a CAGR of 5.8% during the assessment period. More and more set-top boxes are arriving with high-definition functionality. This is mainly due to the superior picture quality and sound quality of HD content.
Based on services, the global set-top box market has been segmented into managed services (Repairing, Testing, Screening), interactive services (Video Conferencing, Video on Demand, and High-Speed Internet Television).
The interactive services Lead the segment with an 8.4% CAGR
The interactive services segment reported 62.25% of the market share in 2017, along with a market valuation of USD 10.956.7 million. In addition, the segment is projected to earn a CAGR of 8.4% during the forecast period.
Based on end-user, the global set-top box market has been segmented into commercial and residential.
The residential segment to earn the highest market share
The residential segment accounted for 75.90% in 2017, with a market value of USD 13.358 million. This can be due to the extensive residential use of the set-top box. Over the projected period, the residential segment will continue to outperform the commercial segment.
Region-wise, the Global Set-Top Box Market has been segmented into North America, Asia Pacific, Europe, and the rest of the world.
Asia Pacific to Exhibit a CAGR of 8.8% by 2023
Asia Pacific is likely to lead the global set-top box market during the forecast period. Asia Pacific accounted for 39.52% of its market share in 2017 and is estimated to have a CAGR of 8.8% over 2023. The Asia Pacific area is set to be the largest market due to the increasing adoption of different set-top boxes in countries like China and India. A substantial part of the Asian population also relies on set-top boxes and television sets for entertainment. The launch of Smart TVs and High Definition (HD) channels has led to an increase in digital tv viewing, which in turn will fuel the set-top box (STB) market growth. In March 2018, Dish TV India Limited stated the completion of the merger of Videocon D2h Limited and Dish TV India Limited. With this acquisition, they set up one of the largest listed media companies in India and vowed to reduce the cost of procurement of set-top boxes. Mergers of this stature contribute to market growth and further boost customer demand. In addition, increasing disposal income, coupled with the presence of numerous government regulations on the digitization of cable television channels across the region, are expected to fuel the STB market growth over the forecast period.
The television industry has undergone a myriad of changes over the last few years and has become more diverse than ever before. The players are constantly innovating and increasingly pursuing market growth through various strategic mergers and acquisitions, and collaborations. The global STB market is composed of a large number of service providers, some of which operate at the regional level and others at the domestic level. Market participants are constantly focused on the development of their service offerings in order to stay competitive and to improve their market position.
Technological developments have caused a spike in demand for STBs integrated with a variety of groundbreaking features. The advent of motion sensors and cameras in STBs is one of the most recent technological breakthroughs. Also, some STB chips now provide Bluetooth connectivity, which enables an STB connection through a gesture-recognition remote control. The provision of new functionality and enhanced services and providing similar functions at a lower price are also helping vendors grow their customer base. For example, Huawei offers low-cost STBs to emerging markets, such as Zimbabwe and India, where the government has mandated cable digitization.
The base year of the set-top box market report is 2018, with a forecast up to 2025. The report provides a comprehensive overview of the competitive landscape, taking into account the market share of the leading companies. It includes key market players with the requisite business intelligence and helps them better understand the future of the set-top box market. The assessment involves a forecast, a description of the competitive structure, the market share of competitors, market dynamics, market demands, market factors, market challenges, and product analysis. Market drivers and restrictions have been examined in order to identify their impact over the forecast period. The report further describes key growth opportunities while also outlining key obstacles and potential risks.
Frequently Asked Questions (FAQ) :
The global set-top box market is set to grow at a 16.60% CAGR between 2017- 2023.
The global set-top box market is projected to reach USD 1.80 billion by 2023.
The Asia Pacific will lead the global set-top box market.