Conditional Access Systems Market Analysis

Market Overview

Conditional access systems (CAS) is a content security solution used to limit illicit users from getting access to paid digital broadcast services. CAS used for content security by encrypting digital signals while broadcasting and then decrypting them at the user’s end. These systems, also referred to as revenue security solutions are mounted on set-top boxes or other receiving devices at the subscriber’s end.

The global Conditional Access Systems Market was accounted for US$ 3,750.6 Mn in terms of value in 2019 and is expected to grow at CAGR of 10.3% for the period 2020-2027.

Market Dynamics- Drivers

1. Increasing penetration of digital television worldwide is expected to drive growth of the global conditional access systems market during the forecast period

Television subscribers are major end users of conditional access systems, accounting for over 70% of the total market revenue. These solutions are used to provide content security for digital television service providers and are equipped in receivers at the consumer end. As a result of this, the demand for conditional access solutions is expected to increase significantly with rising penetration of digital television worldwide. The penetration of digital television in North America and the European Union (EU), at present, is over 90% of the total households in the regions. Therefore, these factors are expected to drive growth of the global conditional access systems market during the forecast period.

1. Growing advancements in broadcast media industry are expected to propel the global conditional access systems market growth over the forecast period

Television, digital radio, and internet streaming services have witnessed massive growth in the recent past. According to Coherent Market Insights’ analysis, penetration of high-definition (HD) television service in the U.S. as of 2014 crossed over 80% of the total television subscribers in the country. Moreover, the adoption of ultra-HD television service is increasing rapidly in both developed and emerging economies. The CAS provided for the replacements or new subscription are based on card-less CA technology. Furthermore, the growing adoption of Internet services such as IPTV and OTT content is another factor fueling the growth of CAS market. Therefore, these factors are expected to propel the global conditional access systems market growth over the forecast period.

Statistics:

North America held dominant position in the global Conditional Access Systems market in 2019, accounting for 29.6% share in terms of value, followed by Europe and Asia Pacific respectively

Figure 1: Global Conditional Access Systems Market Share (%) in terms of Value, By Region, 2019

Conditional Access Systems Market - Impact of Coronavirus (Covid-19) Pandemic

The COVID-19 pandemic have adversely affected many industries such as Consumer electronics, Construction and BFSI. The Conditional access systems are widely used in the consumer electronics products such as IPTV. Owing to the COVID-19, many countries such as India and Spain have imposed nationwide lockdown. Due to the Lockdown, there is a shortage of the workers at the television manufacturing facilities. Due to the less manpower, the manufacturing facilities are struggling to move the television sets. In addition to this, due to the shortage of transportation facilities such as Trains and Heavy-duty Vehicles, television manufactures are unable to ship their cargoes. Owing to the above mentioned factors, the COVID-19 pandemic is expected to restrain the conditional access systems market growth in upcoming years.  

Market Dynamics- Restraints

1. Higher operating cost in regions with smaller customer base is expected to hamper the global conditional access systems market growth over the forecast period

The operating cost of conditional access systems is high, especially in regions with small customer base. Digital television transition is in its nascent stage in emerging regions such as Latin America, South Asia, Central Africa, and North Africa. Furthermore, CAS requires future upgrading and maintenance operations, which in turn, increases overall cost of the system. Thus, these factors are expected to hamper the global conditional access systems market during the forecast period.

1. Low awareness among consumers regarding CAS is expected to restrain growth of the global conditional access systems market during the forecast period

Despite the advantages offered by conditional access system, a vast population is still unaware of it. This is highly prevalent in emerging economies such as Latin America, Asia Pacific, and Middle East & Africa. Thus, these factors are expected to restrain growth of the global conditional access systems market during the forecast period.

Conditional Access Systems Market Report Coverage

Report Coverage	Details
Base Year:	2019	Market Size in 2019:	USD 3,750.6 Mn
Historical Data for:	2017 to 2019	Forecast Period:	2020 to 2027
Forecast Period 2020 to 2027 CAGR:	10.3%	2027 Value Projection:	USD 7,976.5 Mn
Geographies covered:	North America: U.S., Canada Latin America: Brazil, Argentina, Mexico, Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific Middle East and Africa: South Africa, North Africa, Central Africa
Segments covered:	By Solution Type -(Smartcard-based and Cardless) By Application -(Television, Internet and Digital Radio)
Companies covered:	Cisco Systems, Inc., ARRIS Group, Inc., Nagravision SA (Kudelski Group), China Digital TV Holding Co., Ltd., Coretrust, Inc., Latens Systems Ltd.,Austrian Broadcasting Services GmbH & Co. KG (ORS Group), and Irdeto, Inc.
Growth Drivers:	Increasing penetration of digital television worldwide Growing advancements in broadcast media industry
Restraints & Challenges:	Higher operating cost in regions with smaller customer base

Market Opportunities

1. Development of cloud-based CAS can present lucrative growth opportunities

Cloud-based CAS solutions are expected to present major growth opportunities in the near future. These solutions include content security management through a hosted conditional access solution. As a result of this, it reduces the upgrade and other operational costs related to CAS. Furthermore, it provides high-level content security for various types of content of any type of network. Key companies in the market can capitalize on these opportunities and gain a competitive edge in the market.

1. Conditional access solutions for multiple devices can provide major business opportunities

Conditional access systems are designed to provide content security with installation on a single subscriber device. This restricts the access of multiple devices to the content in a single household. Multi-screen CAS allows consumers to extend their subscriptions to different devices along with their parent device. With a growing number of multimedia devices per household, the demand for pursuing content on different devices is predicted to rise substantially during the forecast period.

Figure 2: Global Conditional Access Systems Market Value (US$ Mn), 2017 - 2027

The global Conditional Access Systems market was valued at US$ 3,750.6 Mn in 2019 and is forecast to reach a value of US$ 7,976.5 Mn by 2027 at a CAGR of 10.3% between 2020 and 2027.

Market Trends

1. Partnership with different service providers and telecommunication companies

Conditional access systems (CAS) providers target various service providers such as television, pay radio, and other Internet services providers. Among these service providers, television service providing companies constitute the largest share of the revenue of conditional access systems providers. Companies such as Cisco Systems, Inc., Nagravision SA, and Verimatrix, Inc. have entered into partnerships with different service providers in the past few years. Through this, these companies deliver content security for entire services of their customers.

1. Development of conditional access solutions for high-quality television access

Conditional access systems providers are increasingly focused on providing conditional access solutions for upcoming advanced television services. With the rising adoption of next-generation television services such as ultra-high definition (UHD), most of the conditional access solutions providers are engaged in the development of solutions to support UHD television services. These solutions are developed to be compatible with older versions (supporting standard and high-definition services). For instance in September 2014, Verimatrix, Inc., a U.S.-based content security provider, introduced VCAS ultra, a conditional access solution for ultra-HD service providers.

Competitive Section

Key players operating in the global conditional access systems market are Cisco Systems, Inc., ARRIS Group, Inc., Nagravision SA (Kudelski Group), China Digital TV Holding Co., Ltd., Coretrust, Inc., Latens Systems Ltd., Alticast Corporation, Austrian Broadcasting Services GmbH & Co. KG (ORS Group), Austrian Broadcasting Services GmbH & Co. KG (ORS Group), and Irdeto, Inc.