Key Market Overview:
Set Top Box Market was valued at USD 15.25 Billion in 2022, registering a CAGR of 3. 60 % during the forecast period (2022-2030), and the market is projected to be worth USD 20.85 Billion by 2030
A Set-Top Box (STB) is connected to a television to transmit the signals into content that can be displayed on the TV screen. The ongoing digitalization of television content is a key factor driving the adoption of set top boxes among consumers. Additionally, widespread adoption of broadband internet is also driving the market growth, as high-speed internet allows consumers to access online video content through Set-Top Boxes.
A substantial increase in viewership across OTT platforms, such as Disney+ Hotstar, Amazon Prime Video, Hulu, and Netflix, is expected to contribute the market growth. For instance, according to the Ormax OTT Audience Sizing Report, the OTT sector in India increased by 30%, resulting is rise from 22.2 million to 29.0 paid subscribers, between March and July 2020. Also, the convergence of technologies such as the Internet of Things (IoT), big data, and artificial intelligence provides consumers with a more interactive and personalized viewing experience, in turn boosting market growth. For instance, the integration of IoT devices with set-top boxes allows consumers to control the TV and set recordings through a single, easy-to-use interface.
Market Dynamics:
Driver:
- Increasing demand for 4K and 8K to stream high quality video content is driving the growth of the set-top box market.
- Technological advancements to maintain stability and transfer the network faster is fueling the market growth.
- The incorporation of smartphone screen projection and HDMI interface in the set-top box allows the customers to watch their favorite channel with any kind of television model is expanding the growth of the market.
Restraint:
The shift in consumer preferences towards streaming media in their own devices acts as a restraint in the set-top box market since it reduces the demand for traditional set-top boxes. As consumers increasingly opt for their own devices, such as smartphones and tablets to stream videos there is a reduction in need for separate device to access television content. This trend has caused a decline in sales of set-top boxes and is expected to hamper the market as streaming devices continue to improve and offer more features.
Opportunities:
The integration of artificial intelligence into set-top boxes such as voice-recognition technology for channel control and other commands related to weather, signal strength, and music is expected to open vast opportunities for market growth. Also, the emergence of Android TV launchers cut out the software middleware which creates an opportunity for set-top box manufacturers to cut the overall cost of the product and propel the market growth.
Set Top Box Report Coverage:
| Report Attributes | Report Details |
| Study Timeline | 2016-2030 |
| Market Size in 2030 (USD Billion) | 20.85 Billion |
| CAGR (2022-2030) | 3.60% |
| By Type | Cable, Satellite, IPTV, and Others |
| By Resolution | SD, HD, UHD, and 4K & Above |
| By Sales Channel | Offline and Online |
| By End-User | Residential and Commercial |
| By Geography | North America, Europe, Asia Pacific, Latin America, the Middle East and Africa |
| Key Players | Commscope (Arris International), Technicolor, Cisco Systems, Huawei, Samsung Electronics, Roku, Sagemcom SAS, Advanced Digital Broadcast (ADB), Ecostar Corporation, DISH Network
|
Market Segmentation:
By Product
The type segment is classified into cable, satellite, IPTV, and others. The cable set-top box segment dominates the market by generating maximum revenue in 2021. The cable set-top box offers high-quality video content and has the largest subscriber base. The largest subscriber base is due to the easy availability of cable even in rural areas where poor network exists and satellite set-top box is weakly functional. Moreover, the cable providers typically include the cost of a set-top box as part of their monthly subscription fee, which makes it easy and convenient for customers to access cable television.
The IPTV segment is expected to register the fastest CAGR during the forecast period. IPTV functions in an isolated environment and does not rely on the internet’s bandwidth hence, IPTV delivers high-quality content without any interference. Additionally, the IPTV uses the internet of things (IoT) to deliver television services, which provides customers with a more flexible and cost-effective alternative to traditional cable and satellite services, in turn positively impacting the growth of market during the upcoming period.
By Resolution
The resolution segment is categorized into SD, HD, UHD, 4K & above. The UHD segment dominates the market and has generated the largest revenue in 2021 due to the increasing demand for high-quality video content. UHD provides four times the resolution of traditional high definition (HD), delivering a more vivid and immersive viewing experience. Additionally, the availability of UHD content has increased, as maximum content providers and studios produce and distribute more UHD content.
The 4K segment is expected to grow in the future and register the fastest CAGR as several governments worldwide are providing funds for market growth. 4K refers to a resolution of 3840 x 2160 pixels, which provides higher resolution than the traditional high definition (HD). The higher resolution and increased pixel density of 4K displays provides a more vivid and immersive viewing experience, which has made 4K a popular choice among consumers who are looking for a premium television experience.
By Sales Channel
The sales channel segment is bifurcated into offline and online. Offline channels include electronic stores, hypermarkets, and supermarkets. Customers prefer the offline mode of buying as they can test and inspect the product before purchasing, which is a crucial factor in the buying decision. Additionally, the offline sales channels allows customers to compare products offered by different brands before buying. Furthermore, the offline channel dominates in regions with low internet penetration where online mode is weak due to the limited access to high-speed internet services, and online sales pursue at a low rate.
The online sales channel has gained significant momentum and is projected to grow exponentially during the forecast period due to the rise of e-commerce platforms, increased access to the internet, and the convenience of online shopping. Online sales channels also provide customers with access to a variety of products and the ability to compare prices, making it easier for customers to make informed purchasing decisions.
By End-User
The end-user segment is bifurcated into residential and commercial. The residential segment dominates the market in 2021 as set-top boxes are widely used in homes for personal entertainment. Furthermore, the commercial segment is expected to register the fastest CAGR during the upcoming years as set-top boxes are being used incredibly in the educational sector. Also, increasing applications of set-top boxes in educational settings for presentations and lectures is anticipated to boost the growth of the market during the upcoming period.
By Region
North America dominates the market and has generated maximum revenue in 2021 due to surge in trend towards adoption of internet-based set-top boxes. Also, North America has a well-established cable and satellite television market, with a large customer base that relies on these services for their television viewing needs, in turn driving the growth of the market.
Asia Pacific is projected to register the fastest CAGR growth during the forecast period owing to the increasing adoption for on-demand video services in countries such as India, China, and Japan. Also, the presence of crucial manufacturers like Huawei and Samsung in Japan and South Korea is expected to accelerate the growth of the market in Asia-Pacific.
Set Top Box Market Competitive Landscape:
The competitive landscape of the market is highly dynamic, with players constantly vying for market share, customers, and industry recognition. Companies need to have a strong product portfolio, competitive prices, advanced technology, and a strong brand reputation to be successful in the set-top box market. Key players in the market include-
- Commscope (Arris International)
- Huawei Technologies Co.
- Sagemcom SAS
- Samsung Electronics
- Technicolor
- Cisco Systems
- Roku
- Advanced Digital Broadcast (ADB)
- Ecostar Corporation
- DISH Network
Recent Developments:
- In September 2022, Samsung India launched new display technology products, “The Wall All-In-One” and “Flip Pro”, at the InfoComm 2022 event. The products are part of Samsung’s “The Wall” lineup and are aimed at providing advanced display solutions for professional and commercial use.
- In December 2022, Samsung acquired licenses for 5G technologies from Huawei, this acquisition will allow Samsung to use Huawei’s patented 5G technologies in its products. This move is expected to strengthen Samsung’s position in the 5G market and enhance its offerings in the field of wireless communications.
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