The global set top box market was valued at USD 20.1 billion in 2020 and is anticipated to reach USD 341.05 Billion by 2028, expanding at a CAGR of 3.2 % during the forecast period, 2021 – 2028. The growth of the market is attributed to increasing adoption of broadband and internet services along with widespread availability of HD channels and on-demand video services.
A set top box (STB) or a cable box is an appliance that contains TV tuner input and display output. It accepts signals, decrypts them, and displays them on the television. The incoming signal is either an internet data or TV signal range. Earlier, set top boxes were used to view a limited range of TV channels or satellite cable channels, but now a large variety of channels are available for viewing.
Market Trends, Drivers, Restraints, and Opportunities:
- Evolution in digital TVs played a vital role in changing customers and viewer’s attitude towards entertainment content over the internet and television. This, in turn, drives the market.
- Rising demand for OTT platforms such as Netflix, Amazon Prime Video, and Hulu is estimated to fuel the market.
- Rising need for next generation STBs integrated with Video on Demand (VoD), television broadcasting, and internet services is expected to increase growth opportunities for the market.
- Features including sharing on other devices such as portable media players and multi-room TV networks and digitization in technology increased the demand for OTT and VoD platforms.
- STB architectures upgraded with the integration of content protection system and new features, which drives the set top box market.
- Technological transformation in the market from satellite boxes and standalone cables to hybrid boxes implemented with OTT services is expected to boost the market.
- Rising awareness about IP-based set top boxes, such as OTT and internet protocol television, increased the demand for set top boxes.
- Mandatory government regulations on digitization of cable TV and successive migration of analog TV to digital TV drives the demand for STBs.
- Launch of high-resolution TV sets encouraged service providers and manufacturers to provide HD set top boxes to fulfill the customers demand for high-quality content.
- Technology expansion enabled the advancement of innovative products and integration of numerous features including storage capabilities. This factor boosts the market.
Market Segment Insights:
The cable STBs segment is projected to hold a major market share of the total revenue during the forecast period
Based on products, the global set top box market is segregated as satellite STBs, Digital Terrestrial Television (DTT), IPTV, cable, and OTT. The cable STBs segment is estimated to expand at a high CAGR during the forecast period. These STBs provide several benefits such as increased channel carrying capacity and improved reception quality, which results in increased demand. Moreover, stringent government regulations about digitization of cable networks in developing countries such as India are boosting the product demand.
The OTT segment is anticipated to grow at a rapid pace during the forecast period. Technological advancement in the OTT segment increased the demand for enhanced sound quality and high-resolution picture. OTT offers improved features such as simplified payment methods, accessible time shifted viewing, and minimized time-to content. Telecom companies, Pay-Tv operators, and media companies are inclining towards a user-driven innovation, recognizing user experience as a top priority to maintain their position among the competitive players. Additionally, OTT companies such as Amazon and Netflix are providing enhanced 4K content to its users, increasing the demand worldwide.
The HD & full HD segment is estimated to hold a key market share of the total revenue during the forecast period
On the basis of content quality, the global set top box market is bifurcated into HD & full HD and 4K. The HD & full HD segment is anticipated to expand at a high CAGR during the forecast period. Demand for HD & full HD devices increased, due to accessibility to a wide range of channels as compared to others. These STBs act as substitutes to the traditional SD variants, due to their benefits such as enhanced sound and picture quality.
The 4K segment is likely to expand at a high CAGR during the forecast period. Growth of the segment is attributed to rising demand for high-resolution color content, advanced pixel resolution, and sharp picture quality. Significant digitization coupled with strict government initiatives for compulsory installation of set top boxes are estimated to drive the market. The STB market is projected to gain importance in Asia Pacific, due to presence of low cost STB producers, particularly in countries such as Taiwan, Korea, and China.
The market in Asia Pacific a held a major market share of the total revenue in 2019
In terms of regions, the global set top box market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. The market in Asia Pacific is expected to expand at a rapid pace during the forecast period. Rising demand for digitization in rural and urban areas is driving the market in the region. Rising consumer awareness among the urban population regarding technological advancements along with the comparison between pricing, benefits, and features is estimated to fuel the market. Presence of major players in countries such as Japan and China drives the regional growth. Additionally, increasing eminence of OTT service providers such as Star TV Network, Netflix, and Amazon Prime Video in developing countries is projected to boost the market.
The market in Latin America is projected to expand at a rapid pace during the forecast period. High speed internet is available in the region, owing to strong competition among internet providers in the region. Additionally, increasing number of Pay-Tv subscribers and changing government policies in support of television industry in the region is anticipated to propel the market during the forecast period.
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