ASIA PACIFIC BROADCASTING EQUIPMENT MARKET ANALYSIS

Broadcasting equipment is used by a broadcaster and media house to distribute video and audio to mass audiences via electronic mass communication medium. Generally, broadcasting equipment is associated with radio and television. Traditional TV broadcast segment includes camera, monitors, routers, switches, cable, transmitter, receiver, and other accessories. IP Converged broadcasting segment includes media production over IP, media contribution over IP, and IP in the studios and campuses. Traditional radio broadcast segment includes audio console, intercom, microphone, speaker, cable, transmitter, and receiver.

Asia Pacific broadcasting equipment market is estimated to be valued at US$ 3,425.6 million in 2021 and is expected to exhibit a CAGR of 8.6% over the forecast period (2021-2028).

Recent Developments:

• In April 2021, Otelco a cable operator in the United States collaborated with Harmonic Inc., a prominent provider of video delivery software, products, system solutions, and services. Otelco is using Harmonic's CableOS Cloud-Native Core Platform and CableOS Central analytics service to deliver gigabit speeds and improved internet experience to rural subscribers.
• In April 2019, Belden Inc. completed the acquisition of Future Link Business from Suttle Inc. as well as Opterna International Corporation which designs and manufactures complementary fiber connectivity, cabinets, and enclosure products used in optical networks.

People’s Republic of China held dominant position in Asia Pacific broadcasting equipment market in 2020, accounting for 29.4% share in terms of volume, followed by India and Rest of Asia Pacific, respectively. Supported by rising demand for digital broadcasting. Increasing popularity of digital content and growing demand for the same is further driving market growth.

Figure 1. Asia Pacific Broadcasting Equipment Market Value (US$ Mn), by Region, 2020

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Asia Pacific Broadcasting Equipment Market: Drivers

Realignment in capital expenditure for broadcast equipment is expected to drive growth of Asia Pacific broadcasting equipment market during the forecast period

In Asia Pacific, production and media houses are realigning their capital expenditure on broadcasting equipment. Modern equipment is comprised of advanced software and supports open architecture. These solutions are more compatible with multiple standards and thus allow greater flexibility to media and production houses. Furthermore, there is a high demand for pay-per-usage that facilitates media and production houses to avoid any up-front installation costs for broadcasting devices. As a result of this, the capital expenditure of these organizations has been realigned, which in turn, is expected to drive growth of the market during the forecast period.

High-definition (HD) production and transmission is expected to propel the Asia Pacific broadcasting equipment market growth over the forecast period

Consumers in Asia Pacific are increasingly demanding high-definition (HD) media content. Currently, broadcasters are increasingly focusing on HD content production and transmission. This, in turn, is driving the demand for equipment such as HD cameras and video servers. Thus, these factors are expected to propel the Asia Pacific broadcasting equipment market during the forecast period.

Asia Pacific Broadcasting Equipment Market: Opportunities

Adoption of cloud computing can present lucrative growth opportunities

Cloud services are gaining massive traction in numerous industries. Broadcasters often invest a significant amount of sum in the procurement and installation of broadcasting equipment. However, whenever it is not content to broadcast, the equipment is idle and does not create any significant value for the broadcaster. Advent of cloud computing technology has facilitated broadcast equipment manufacturers to offer services through cloud to broadcasters. As a matter of fact, broadcasters can avail of these services on the basis of pay-per-use and save a significant amount of money.

Advent of customized broadcasting equipment can pose major business opportunities

Currently, audiences watch video content outside the TV room on various devices such as laptops and smartphones. Broadcaster and media houses are broadcasting programs for niche and specific audiences rather than going for mass programming. Audiences are increasingly preferring to watch programming tailored just for them. To meet this changing demand of viewers, media houses are seeking customized broadcasting equipment from OEMs, hence creating vast opportunities for broadcasting equipment manufacturers.

Market Trends

Changing shift from HD to UHD

The media broadcast industry is witnessing notable changes in resolution and video quality, which is an effort to offer consumers ‘as-if-you-were-there’ experiences over the display devices on their choice. Transition from high-definition (HD) to ultra-high definition (UHD) has become common among all the technology and media industry professionals. Ultra high-definition services are expected to witness greater adoption and drive customer engagement, especially among sports fans. Meanwhile, consumers are turning to “second screens” on their smartphones and other mobile devices to broaden the scope of their viewing experiences.

Rising consumer demand for multi-screen freedom

Besides better image quality, consumers are increasingly preferring to access audio-visual content from any device, anytime, anywhere. While linear television still reigns supreme among home screens, content consumption continues through devices such as personal computers, laptops, smartphones, and tablets. This rising content demand from consumers mandates the broadcasting industry to keep up their infrastructure facilities at par with the anticipated demand. OTT players such as YouTube, Netflix, and Amazon Prime are playing a considerable role in driving the demand for consumer’s multi-screen freedom preference. As OTT platforms are maturing, broadcasters are looking to use the technology to engage viewers better.

Figure 2. Asia Pacific Broadcasting Equipment Market Share, By Equipment Type, 2020

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Key Takeaways of the Graph:

• Among Equipment Type, the Traditional TV Broadcast held dominant position in the market and accounted for 4% share in Asia Pacific broadcasting equipment market in 2020. The segment is expected to reach US$ 3,121.2 million in 2028.
• Traditional Radio Broadcast held dominant position in the market and accounted for 6% share in Asia Pacific broadcasting equipment market in 2020. The segment is expected to reach US$ 1,390.8 million in 2028.
• The growth of traditional broadcast is supported by increasing demand consumer attraction towards the traditional broadcasting system over IP Converged Broadcasting. However, it is expected that, in the near future IP converged broadcasting will emerge and capture maximum share of traditional broadcasting. Moreover, media and production houses are increasingly shifting towards IP converged broadcasting, in order to avail all these benefits of IP converged broadcasting

Asia Pacific Broadcasting Equipment Market: Restraints

Global decline in economy and restraints in advertising is expected to hamper the Asia Pacific broadcasting equipment market growth over the forecast period

Global decline in the economy is affecting the broadcasting industry in Asia Pacific region. Furthermore, slowdown in China’s economy has also made negative impact on the market as China holds the dominant position in the Asia Pacific broadcasting equipment market. The media industry in the region is significantly dependent upon advertising revenue. Advertising and marketing budgets are reduced or diverted towards comparatively cheaper media channels, owing to the slowdown in economies across the Asia Pacific region. Hence, these factors are expected to restrain growth of the market during the forecast period.

Infrastructural changes such as lack of electricity and mismatch cabling are expected to restrain growth of the Asia Pacific broadcasting equipment market during the forecast period

Modern broadcasting equipment requires adequate support from existing infrastructure, in order to work properly. In Asia Pacific region, the penetration of electricity is slow in many countries, which creates a major challenge for broadcasters since these devices require sufficient and reliable power supply to function. Moreover, broadcaster often relies on generators for power supply, in order to combat power outages on the local gird, which results in additional cost. Thus, these factors are expected to restrain growth of the Asia Pacific broadcasting equipment market during the forecast period.

Asia Pacific Broadcasting Equipment Market: Competitive Landscape

Key players operating in the Asia Pacific broadcasting equipment market are Media Excel Inc., Bridge Technologies Co AS, ChyronHego Corporation, Nevion Europe AS, TVU Networks Corporation, Enesys Technologies, XOR Media Inc., Pebble Beach Systems Limited, FOR-A Company Limited, BroadStream Solutions Inc., Oracle Corporation, General Dynamics Mediaware, Unlimi-Tech Software Inc., Tedial S.L., and Grass Valley Canada.

Key Developments

Major market players are focused on partnerships and collaborations, in order to enhance the market presence. For instance, in February 2020, Bridge Technologies Co AS, a Norway-based company, partnered with DEVO as its sales representative in the U.S.

Key companies in the market are involved in product launches, in order to gain a competitive edge in the market. For instance, in April 2019, ChyronHego Corporation launched ‘Fresh’, a graphics-rendering solution that integrates Epic Games’ Unreal Engine 4 with ChyronHego’s augmented reality and virtual set software.