Set-Top Box Market Size

Set-Top Box Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

Set-top box market is a market that is expected to grow significantly. The market size is expected to reach 19.41 billion U.S. dollars in 2025 and is expected to reach 33.56 billion U.S. dollars in 2034, at a CAGR of 6.3%. This growth trend is mainly driven by the increase in the demand for digital content and the migration of traditional cable services to Internet-based platforms. Moreover, as the demand for a more diversified and more flexible viewing experience increases, the set-top box market will continue to develop. It is expected that the demand for 4K/8K content will increase, the UI will be improved, and the smart home will be integrated. Roku, Amazon, and Apple are leading the trend of innovation, and they have a long-term strategy of forming alliances and investing in new technology. Roku has a recent alliance with content service companies, which is expected to be a driving force for the development of the set-top box market. The future of the media industry will continue to evolve, and the set-top box market will continue to grow.

Regional Market Size

Regional Deep Dive

The Set-top Box (STB) market is experiencing dynamic growth in many regions, owing to the rising demand for digital content and the proliferation of streaming services. North America is characterised by the high penetration of advanced STBs. Europe, by contrast, is a market with a wide variety of offerings, catering to different preferences. The Asia-Pacific region is experiencing rapid growth, with increasing internet penetration and mobile device usage. Middle East and Africa is growing rapidly, mainly thanks to government initiatives to develop digital infrastructure. In Latin America, traditional cable solutions are gradually being replaced by flexible streaming solutions, which are more in line with the consumers’ changing needs.

North America

• In recent years, the rise of the digital platforms has caused the decline of the traditional cable subscriptions, which forced the companies such as Comcast and Dish to modify their set-top boxes in order to include the digital platforms.
• The FCC’s regulatory changes have prompted manufacturers to develop devices that are more cost-effective and easy to use, and have thus given consumers more choice.
• The integration of voice control and smart-home features in set-top boxes from companies such as Roku and Amazon has completely changed the way people interact with their devices, and has made them more attractive to the tech-savvy generation.

Europe

• The European Single Market initiative is working to promote interoperability between set-top boxes and to encourage manufacturers to create devices that can access more content across borders.
• In Germany, telecommunications companies such as Deutsche Telekom are already leading the way in the development of hybrid set-top boxes, which combine the classic broadcasting system with the Internet.
• Local content preferences have led to the development of region-specific STB features such as language selection and access to local channels, which have enhanced the customer experience.

Asia-Pacific

• The growth of the middle class in countries such as India and China has led to an increase in the demand for inexpensive set-top boxes, and this has created a market opportunity for local manufacturers like Tata Sky and Xiaomi.
• The development of the digital terrestrial broadcasting of India is accelerating the introduction of set-top boxes, and the access to digital content is increasing.
• The rise of OTT platforms has led traditional cable operators to bundle STBs with OTT services to create a more comprehensive entertainment package for consumers.

MEA

• The National Media Council, established by the UAE, has taken a lead in the digital transformation of the country's media industry, and this is creating a conducive environment for the STB market.
• The growing availability of inexpensive Internet connections is enabling more households to access digital content, which has led to a surge in the demand for set-top boxes across the region.
• The telecommunications operators and the STB manufacturers cooperated to develop advanced STB technology, and to provide consumers with a wide variety of content.

Latin America

• In countries such as Brazil and Mexico, companies like Claro and Televisa are adjusting their STB offerings to include OTT capabilities.
• The prevailing economic conditions, such as currency fluctuations, have influenced the purchasing power of the consumers and thereby influenced the demand for more cost-effective STBs.
• The telecommunications regulatory framework is changing and the set-top box industry is under increasing pressure to produce a wider range of products.

Did You Know?

“By 2022, there were an estimated billion set-top boxes in the world. A large number of these boxes had the capability of receiving both terrestrial and Internet broadcasts.” — Statista

Segmental Market Size

The set-top box plays a crucial role in the overall market, facilitating content delivery and enhancing the experience of users. The set-top box market is growing steadily, as consumers are moving from traditional cable to Internet-based platforms. Over-the-top (OTT) services such as Netflix and Hulu are the main drivers of the set-top box market. Advances in smart TVs have also increased the market for set-top boxes.

The Set-top Box market is in its maturity phase today, and the leading players are Roku, Amazon (Fire TV), and Apple (Apple TV). These boxes are used for streaming media, games, and interactivity, and are especially important in regions with high broadband penetration such as North America and Europe. But the emergence of 5G and the trend towards more personal content delivery is accelerating growth. Artificial intelligence and machine learning are also set to transform the market by improving interactivity and content recommendations.

Future Outlook

SET-TOP BOX MARKET SET TO GROW BY 6% A YEAR TO 2025 SET-TOP BOX MARKET IS SET TO GROW BY 6% A YEAR TO 2025 , NEW STUDY SAYS, driven by rising demand for high-definition content, the expansion of digital and hybrid set-top boxes, and the integration of advanced technologies such as artificial intelligence and machine learning into their features. As consumers continue to demand a more individualized viewing experience, the demand for smart set-top boxes offering enhanced interactivity and content recommendation features is expected to rise, further accelerating market growth.

A number of new technological developments, such as the transition to 5G networks and the growth of the Internet of Things (IoT), will also have a significant impact on the STB market landscape. These developments are expected to enhance the quality of streaming and reduce latency, thereby improving the satisfaction of consumers. In addition, the digitalization of emerging economies and the expansion of broadband access will contribute to the increased penetration of STBs, especially in areas where digital content is still limited. In the long run, STB penetration in households is expected to reach 70%, which will make it an indispensable tool in the digital media environment.

The new trend of a convergence of STBs with other home entertainment systems, as well as the emergence of cloud-based services, is reshaping consumers’ expectations and market dynamics. The evolution of STBs into multi-purpose media hubs integrating all media sources will require constant innovation to maintain their competitive edge. As consumers become more aware of their responsibility to the environment, they will also expect products to be more sustainable and energy efficient. And, as a result of this convergence, the STB market is expected to go through a major transformation in the coming decade.