Set-Top Box Market

Set-Top Box Market Size & Growth (2020 - 2025)

The global set-top box market size is expected to post a compound annual growth rate (CAGR) of above 7% over the forecast period (2020-2025). The market should reach a valuation of USD 31.24 billion by 2025.

Entertainment will never die and will continue to affect human civilization in many ways. Nowadays, in an average house, it is almost impossible to imagine a life without television. Families' entertainment needs are centered on TV, which is made possible by a small, important information device called a decoder. India, for example, the second largest population in the world, is an important market for set-top boxes across the country.

High levels of technological innovation have led to the development of a wide range of decoders equipped with various functionalities. One of the most popular features is digital video recording, as it allows viewers to watch and record their favorite shows.

Air DVR systems are an independent set-top box that allows viewers to broadcast and record television programs. In addition to DVRs, subscription television service providers offer set-top boxes to customers. Also, DISH, an American television provider, introduces AI in its latest decoders.

Recent Developments:

• In September 2018, ARRIS International PLC will strengthen the new generation satellite distribution network for HBO Latin America.

• In March 2018, Dish TV India Limited completed a merger with Videocon D2h Limited. With this collaboration, the two companies created one of the largest media companies in India and promised to reduce the costs of acquiring set-top boxes. Mergers of this magnitude complement market growth and help increase consumer demand.

• January 2019: The television supplier DISH announced that it was integrating its Hopper receiver range with Google Assistant, integrating the intelligent assistant directly into its decoders. This new integration is based on the existing capacity of the DISH voice remote control to control the TV experience, including navigation, search and selection of content.

• October 2017: Huawei and Dolby Laboratories Inc. announced that the Huawei Q22 decoder is one of the first IPTV decoders in the world to support Dolby Vision high dynamic range (HDR) technology. Dolby Vision transforms the television experience at home by providing increased brightness and contrast, as well as a complete palette of intense colors.

Market Growth and Trends:

Satellite type witnessed rapid growth and is expected to hold a significant share in the forecast period.

• Satellite television is one of the most critical applications in the global set-top box market. One of the innovations of satellite television is the introduction of a program recording system, which allows consumers to record their programs in real-time and watch them later, at their convenience.

• India is an attractive market for set-top boxes. In addition to the thriving direct satellite activity at home, the country is reaching the end of the digitalization of its cable television system, an effort that has seen a massive improvement of decoders throughout the country. For example, India had about 67.56 million DTH subscribers in 2017, compared to 66.09 million in 2016.

• According to the Telecommunications Regulatory Authority of India (TRAI), the top five direct payment home service providers (DTH) added 80,000 net payment subscribers during the quarter ending September 2018.

• The competition between cable television and DTH is fierce. However, viewers can change cable or DTH service providers without changing the STB decoder by the end of 2019, according to the president of Trai regulator. Also, the demand for IPTV and OTT in the United States is increasing, which could jeopardize the growth of the satellite decoder during the forecast period.

Drivers and Market Restraints:

Drivers:

Television remains the primary source of entertainment - an annual survey titled American Time Use Survey conducted by the Bureau of Labor Statistics, the United States in 2018 deduced that watching television was the favorite pastime of Americans. Between 2013 and 2017, the average American spent 2 hours and 46 minutes watching TV. These statistics reflect the need for growth in the set-top box market and the innovation of the product. Capitalizing on this constant demand will drive market growth.

The digitalization of television technology is an essential engine for the global set-top box market. The introduction of smart TVs with high definition content is likely to stimulate growth in the decoder market. Another factor that is foreseen to drive growth in the global market is the demand to see high-quality content in the home. Besides, the IP transmission recording functionalities and storage specifications developed also stimulate the growth of the global set-top box market.

Restraints:

Over-the-top services are the biggest challenge facing the decoder market. Online streaming services such as Netflix and Amazon have become popular among young people thanks to their ease of access and original content. Investing in introducing innovation in the decoder experience is the way to address this challenge. Huawei Technologies, for example, has partnered with Dolby Laboratories and launched the world's first Dolby-vision decoder that has been of great interest to consumers.

Market Segmentation:

By type of product, the global set-top box market is segmented into Internet Protocol (IP) TV, digital terrestrial TV, Satellite, Cable, Over-the-top (OTT) content and more. Of these, the satellite segment accounted for the leading portion of the world market due to the increasing broadcasting activities.

Based on the content quality, the global set-top box market is divided into high definition, standard definition and 4K. The high definition segment is likely to expand with a noteworthy growth rate in the coming years, owing to the increasing disposable income of the consumers.

By services, the global set-top box business is divided into managed services (test, repair, filtering) and interactive services (video on demand, videoconferencing and high-speed Internet television).

Depending on the end-user, the global market is separated into commercial and residential. The residential segment is foreseen to continue its lead in the coming years due to the increasing number of households that purchase televisions.

Regional Analysis:

Geographically, the global set-top box market is divided into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. The Asia Pacific set-top box is projected to account for the leading portion in the world business because of the rising adoption of TVs in all the nations of this region. The increasing population in the area is indirectly pushing the demand for the local set-top box business.

Key Market Players:

Some of the main players in the global set-top box market are Huawei Technologies Co. Ltd., ARRIS International, DISH Network, HUMAX Co. Ltd., Technicolor, Samsung Electronics Limited, EchoStar Corporation, Coship Electronics Co. Ltd., Cisco Systems Inc. and ADB Global.