Set Top Box Market Worth $25.45 Billion By 2022
San Francisco, Calif., March 10, 2016-The global Set Top Box (STB) market size is expected to reach USD$ 25.45 billion by 2022 according to a new report by Grand View Research, Inc. Technology proliferation and increasing demand for high-quality picture and sound is anticipated to boost global set top box market growth. Increasing demand for IPTV models in developed regions from North America and Europe has further bolstered industry growth. Additionally, abridged prices of smart TVs and growing availability of HD channels across all platforms are expected to push demand for advanced STB devices.
STBs can be categorized into cable, satellite, Internet Protocol TV (IPTV), Digital Terrestrial Television (DTT) and Over The Top (OTT) devices. Digital format transmissions provide better sound and picture quality, as well as an enhanced viewing experience in HD. Additionally, they provide interactive services such as Video On Demand (VoD), and the freedom to pay only for selected channels.
Recent administrative regulations pertaining to digitization in countries such as India are further expected to impel industry growth as these protocols can provide monetary relief to viewers, and in some cases, funding for broadcasters to enable a digital switch over to take place by a given deadline.
However, procurement costs and associated costs of pay channels are expected to pose as challenges for the industry. The inequality in demand and supply of devices across the world is expected to negatively affect the global market.
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http://www.grandviewresearch.com/industry-analysis/the-global-set-top-box-market
Further key findings from the report suggest:
- DTT STB segment dominated the global set top box industry contributing to over 25% of the market revenue in 2014. DTT broadcasts uses terrestrial (land-based) signals and enable efficient use of spectrum providing increased capacity over analog transmission, better quality images, and lower operating costs for broadcast and transmission after an initial upgrade investment.
- Vendors are offering various types of STBs, ranging from basic cable to satellite to the ones that record content via IP transmission such as in IPTV. Key operators are deploying new services in response to the threat against OTT service providers. The conventional digital model is emerging into a hybrid version supporting alternative sources of premium content such as OTT video services.
- Asia Pacific dominated the global set top box industry contributing to over 35% of the global revenue in 2014. IP transmission recording features and higher storage specifications are expected to ensure a steady growth in North American region. Initiatives by the government and authorities have led to an overall increase in the installation of devices in the select geographies.
- Asia Pacific regional STB industry is expected to grow at a CAGR of nearly 2.5% from 2015 to 2022. Major manufacturers in the industry are established in countries from the Asia Pacific region, such China and Taiwan, owing to higher production capacities and cheap labor. This has led to an increased awareness and adoption of STBs in the region.
- Key industry participants include Samsung, Skyworth, Cisco, Echostar, Amazon, Huawei, ADB, HUMAX, Coship, and Technicolor. Vendors are progressively adopting innovative distribution strategies such as authorized e-commerce retailers apart from traditional retail stores.
