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The set-top box market is estimated to grow by USD 6.21 billion, at a Compound annual growth rate (CAGR) of 4.74% between 2022 and 2027. The market experiences robust growth driven by various factors, including the seamless integration of voice control features into set-top boxes. Additionally, the market witnesses continual expansion due to frequent product launches introducing innovative features. The landscape is further shaped by a surge in mergers and acquisitions (M&A) among key players, contributing to market consolidation and technological advancements. These trends collectively propel the market forward, meeting the evolving demands of consumers for enhanced entertainment experiences. The market report also includes in-depth information on key market drivers, trends, and challenges.
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The market is fueled by the increasing demand for home entertainment services, with Android set-top boxes emerging as a prominent choice among subscribers. As cable networks expand their offerings, value-added services and interactive video content drive subscriber engagement. Market dynamics are influenced by government regulations, particularly concerning the analogue to digital switch-off, prompting widespread adoption of OS-based devices. Set-top box makers continuously innovate to enhance installation ease and optimize user experiences, catering to the evolving demands of consumers worldwide.
The type segment of the market is diverse, catering to the evolving needs of consumers in the digital TV domain. With the rising demand for high-quality entertainment, set-top boxes play a crucial role in delivering HD channels and on-demand video services to viewers. Key players like 3 Screen Solutions (3SS) are driving innovation in this space with Android STBs equipped with advanced connectivity features such as Wi-Fi, Ethernet, HDMI, and Bluetooth. Bluetooth Low Energy (BLE) technology enhances interaction with OTT industry services, while telecom service providers continue to offer cutting-edge set-top boxes to enhance the picture resolution and overall viewing experience on high-definition TVs.
The market share growth by the satellite set-up box segment will be significant during the forecast period. Satellite set-top boxes are devices that are used to decode and tune digital signals received from transmitting satellites and convert them into a proper viewable television format. The increasing demand for high-definition televisions among consumers will help in the growth of the segment during the forecast period as satellite set-top boxes provide a wide variety of programs with clear visuals and immersive surround sound.
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The satellite set-up box segment was valued at USD 6.49 billion in 2017 and continued to grow by 2021. Satellite service providers are also using new compression standards such as MPEG-4, which allow Companies to provide more high definition (HD) channels by streaming them efficiently. AT and T Inc.-owned DIRECTV and Dish Network LLC (Dish Network) are two of the satellite service providers that have upgraded to the MPEG-4 format in the US. The Companies offering satellite TV services are also providing new boxes that offer additional features such as OOT services. For instance, in October 2019, Dish Network offered a new box that offers satellite TV as well as OTT services. The new set-top box is based on Android. Hence, the increasing demand for high-definition video content among consumers is expected to help drive the growth of the satellite STB segment during the forecast period.
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APAC is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for set-top boxes is expected to increase in APAC due to factors such as the rising number of households with TVs, the decreasing TV subscription charges, and the decreasing prices of set-top boxes. The number of households with TVs is increasing in developing countries of APAC, such as India. For instance, in India, nearly 72% of households had access to TV in 2019. China was the largest TV market globally, with over 378 million households having a TV. The decreasing price of TV subscriptions will also help in increasing their demand in APAC during the forecast period.
The market is witnessing significant growth within the digital TV domain, driven by the rising demand for HD channels and on-demand video services. Industry leaders like 3 Screen Solutions (3SS) are innovating with Android STBs equipped with Wi-Fi, Ethernet, HDMI, and Bluetooth connectivity, including Bluetooth Low Energy (BLE) technology. This surge is bolstered by the expanding OTT industry and partnerships with telecom service providers. They cater to diverse needs, offering HD picture resolution for high-definition TVs and android set-top boxes for interactive engagement. With the analogue switch-off, digital STBs are becoming indispensable for home entertainment services, enabling access to value-added services and channel pack subscriptions while adhering to government rules and ensuring seamless installation across OS-based devices. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
One of the key factors driving the market is the integration of voice control into set-top boxes. The convenience of controlling the set-top box through voice commands makes these boxes popular among consumers. Therefore, companies are significantly investing in developing the voice control feature for their set-top boxes. In September 2019, Sagemcom Broadband SAS launched a new set-top box that delivers high-quality pictures and sound. It also has a voice assistant to control the video and audio content with the voice.
Moreover, in October 2020, Humax Group launched a new set-top box with a voice assistant and Wi-Fi 6E gateway. The new product also includes integrated stereo sound and supports Alexa's Far-Field Voice Recognition with a built-in mic. The integration of voice control features into set-top boxes to make them more convenient to use will drive the growth of the global IPTV market during the forecast period.
The declining prices of DRAM chips are the primary market trends. The decreasing prices of TVs globally, owing to production innovations, is one of the factors that make them accessible to a vast majority of households. The prices of TVs are expected to decrease further during the forecast period. A change in manufacturing methods is expected to decrease the price of organic light-emitting diode (OLED) TVs during the forecast period. Companies are using inkjet-printed panels (IJPs) rather than traditional white OLED (WOLED) panels for OLED TVs.
The number of households with access to TV is increasing around the globe. Hence, the decreasing prices of TVs, which make them affordable for a larger number of consumers, will increase the demand for set-top boxes during the forecast period, which can positively influence the growth of the global set-top box market.
Security threats associated with next-generation set-top boxes is one of the key challenges hindering the market growth. With the growing OTT market, the next-generation set-top boxes integrate video content from multiple signal sources such as broadcast television, premium video-on-demand services such as Netflix and Amazon Prime, and Internet-based services. These advanced levels of integration of technologies will make these set boxes prone to constant threats from device tampering, software security breaches, and hacker attacks that can significantly impact the reputation of both set-top box manufacturers and operators.
Content owners, which include movie and television studios, often demand the content licensee (cable or satellite TV operators) to take steps to prevent piracy of their video content and to integrate technologies to prevent data breaches. Several lawsuits have been filed against TV operators by various movie and television studios for the piracy of their video content. In April 2019, various Canadian media companies filed a lawsuit against 125 pirated TV box sellers for selling set-top boxes that are pre-loaded with pirating tools and pre-configured to help their users for illegal streaming of video content.
The market growth analysis report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research and growth report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Abox42: The company offers next-generation Smart-Set-Top-Box platforms for Pay-TV, IPTV, and OTT operators. Also, the company caters to different segments of hardware manufacturers such as IPTV, OTT, Set Top Boxes, STB, IoT, Smart Home, and Cloud Services.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market is witnessing rapid growth driven by technological innovations and the increasing demand for enhanced home entertainment services. Companies like 3 Screen Solutions (3SS) are revolutionizing the industry with advanced solutions tailored for modern consumers. With connectivity options such as Ethernet and Bluetooth Low Energy (BLE), set-top boxes are becoming integral components of the OTT industry ecosystem, catering to the needs of both viewers and telecom service providers. Enhanced picture resolution and support for high-definition TVs ensure an immersive viewing experience, while Android set-top box platforms offer flexibility and engagement. Governments' regulations on analogue switch-off are further accelerating the adoption of digital switch-off technologies, driving the market forward.
The market is experiencing significant growth, fueled by the expansion of the Digital TV domain and the rising popularity of On-demand video services. With the integration of Android STBs, consumers enjoy access to a wide range of applications and content. Seamless connectivity through HDMI ensures high-quality viewing experiences for subscribers across various cable networks. Moreover, the market is witnessing increased demand for value-added services and customized channel pack subscriptions, driving innovation in interactive videos and content delivery. Compliance with government rules regarding digital broadcasting and easy installation processes contribute to the widespread adoption of OS-based devices offered by leading STB makers in the industry.
In developing nations, the market is undergoing significant transformations driven by regulatory measures like the Cable Television Networks (Regulation) Act enforced by the Indian government. The transition to digital transmissions aims to curb the proliferation of illegal channels and enhance content accessibility. STB providers are innovating with features like digital video recording to cater to evolving consumer preferences. Furthermore, the impending rollout of 5G networks promises enhanced connectivity and streaming capabilities. Companies like the Airtel DTH unit are investing in advanced technologies such as high-definition set-top boxes and locally produced set-top boxes to meet the growing demand for quality entertainment solutions.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Market Scope |
|
Market Report Coverage |
Details |
Page number |
174 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 4.74% |
Market growth 2023-2027 |
USD 6.21 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
5.21 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 41% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ABOX42 GmbH, Advanced Digital Broadcast SA, Broadcom Inc., Catvision Ltd., Comcast Corp., CommScope Holding Co. Inc., DISH Network Corp., EchoStar Corp., Huawei Technologies Co. Ltd., HUMAX Electronics Co. Ltd., MyBox Technologies Pvt Ltd., Roku Inc., Sagemcom Broadband SAS, Samsung Electronics Co. Ltd., Shenzhen SDMC Technology Co Ltd, Skyworth Group Ltd, Technicolor SA, TelergyHD, TiVo Corp., and ZTE Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Streaming Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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