Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
A set-top box (STB) also referred to as a cable box is an information appliance device that generally contains a TV-tuner input and displays output to a television set. Set-top boxes enhance television features by providing multiple channels and enable the customer to avail benefits of video on demand (VoD), pay per view, and interactive features with the help of TV. The introduction of set-top boxes enabled this industry to keep up with Internet-based devices. The primary function of a set-top box is to convert the input signal into a compatible signal that provides the required audio, video, and web pages as output.
The global set-top boxes market is estimated to account for US$ 33.5 Bn in terms of value by the end of 2027.
Market Dynamics- Drivers
- Rising penetration of interactive features and increasing digitization is expected to drive growth of the global set-top boxes market during the forecast period
Over the years, the proliferation of interactive features in set-top boxes has increased. According to the Cisco Visual Networking Index (VNI) service adoption forecast, the number of households with TVs is expected to reach 1.8 billion by 2018 from 1.6 billion in 2013, expanding at a CAGR of 1.7% from 2013 to 2018. This growth of digital TV is expected to lead to increased demand for high definition (HD) broadcasting services among end users. Furthermore, the set-top box offers a vast range of choices in terms of the number of channels available to end users than ordinary cable services. Since there is high consumption of HD technology, the demand for HD channels is expected to increase in the near future. According to the Cisco VNI service adoption forecast, the number of VDR subscribers was 131 million in 2013 and is expected to reach 198 million by 2018, expanding at a CAGR of 8.6% during 2013 and 2018. Therefore, these factors are expected to drive growth of the global set-top boxes market during the forecast.
- Increasing demand from emerging economies is expected to propel the global set-top boxes market growth over the forecast period
The demand for set-top boxes has increased significantly from emerging regions such as Middle East & Africa, Latin America, and the Asia Pacific. Many countries in these regions started shifting to digital television in 2006. However, most of them are still in the process of achieving a complete switchover, and a significant number of countries are expected to complete the switchover during the forecast period. This is expected to boost the demand of set-top boxes in near future. Moreover, growth of industrialization and employment opportunities is increasing the levels of disposable income in these countries. Thus, these factors are expected to propel the global set-top boxes market growth over the forecast period.
APAC held dominant position in the global set-top boxes market in 2019, accounting for 39.1% share in terms of value, followed by Europe and North America respectively.
Figure 1: Global Set-Top Boxes Market Share (%), in terms of Value, By Region, 2019
Market Dynamics- Restraints
- Rising competition from OTT services is expected to restrain growth of the global set-top boxes market during the forecast period
Increasing demand for internet-based services is posing major challenge for set-top box market. Increasing demand for Internet-based services is posing a challenge for the set-top box market. According to the Cisco VNI Index, the global Internet video traffic is expected to rise at a CAGR of 33% during 2014 to 2019 and is expected to reach 105.2 Exabytes per month. The demand for the internet-based connected devices is expected to boost OTT channel broadcasting in the near future. According to Ericsson ConsumerLab TV & Video Consumer Trend Report 2012, 20% of the respondents that were surveyed planned to eliminate or reduce their traditional TV package as the OTT services were cheaper than TV. Thus, these factors are expected to restrain growth of the global set-top boxes market during the forecast period.
- Lack of awareness among end users is expected to hinder the global set-top boxes market growth over the forecast period
Despite its various advantages, there is a major lack of awareness about the set-top box. Many consumers, especially in emerging economies, are still using a conventional cable system. As a result of this the demand for the set-top box is being hindered. Therefore, these factors are expected to hamper the global set-top boxes market growth over the forecast period.
Set-Top Boxes Market Report Coverage
||Market Size in 2019:
||US$ 20.4 Bn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 33.5 Bn
- 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: GCC Countries, South Africa , Rest of Middle East and Africa
- By Type: Cable Set-Top Boxes, Satellite Set-Top Boxes, IPTV Set-Top Boxes, HBB TV Set-Top Boxes.
- By Video Quality: Standard-Definition Set-Top Boxes, High-Definition Set-Top Boxes.
Humax Co., Ltd., Sagemcom SAS, Huawei Technologies Co., Ltd., Kaonmedia Co. Ltd., Technicolor SA, EchoStar Corporation, ADB (Advanced Digital Broadcast) SA, ARRIS Group, Inc., Apple, Inc., and Samsung Electronics Co. Ltd.
- Rising penetration of interactive features and increasing digitization
- Increasing penetration from emerging economies
|Restraints & Challenges:
- Rising competition from OTT services
- Lack of awareness among end-users
- Advent of HEVC decoder in set-top box can present lucrative growth opportunities
Some pay TV operators have started offering 3840 x 2160 (4K) and 7680 x 4320 (UHD/8K) to their subscribers, owing to the introduction of HD video. The 4K and 8K HD formats are creating high levels of video traffic which is creating problem for pay TV operators to provide more number of channels through transmission. The H.264 standard decoder provides more distortion in video image after decoding the video content in a set-top box. Thus, STB manufacturers are finding new ways to transmit the video content with less distortion. High-efficiency video coding (HEVC) is a video compression standard expected to see high level of adoption due to its high compression ability while maintaining the quality of the video.
- Adoption of IPTV and hybrid STBs can provide major business opportunities
STB market is evolving due to increasing adoption of IPTV and hybrid STBs around the world. Due to wide adoption of Internet and broadband services in North America and Europe, the market for IPTV and hybrid STBs is expected to increase in coming years. Further, Asia Pacific is also expected to experience significant growth in adoption of IPTV and hybrid STBs due to increasing adoption of Internet service and increased spending capacity among its population. The digitization switchover in Latin America and Asia Pacific countries in coming years is expected to boost the market for cable and satellite STBs in these regions.
Figure 2: Global Set-Top Boxes Market Value (US$ Bn), 2017 - 2027
The global set-top boxes market was valued at US$ 20.4 Bn in 2019 and is forecast to reach a value of US$ 33.5 Bn by 2027 at a CAGR of 6.4% between 2020 and 2027.
- North America Trends
According to Ofcom International Communication Market Report (ICMR) 2014, digitization in the U.S. is around 95% and most of the end-users have HD TVs in their household. Furthermore, according to Cisco VNI, the number of connected TVs in North America would reach 750 million by 2019, rising from 495.2 million in 2014. Additionally, in North America the number of 4k or Ultra HD TVs is expected to reach 64.3 million by 2019, growing from 1.3 million in 2014. Thus, during the coming years, it is anticipated that there would be more demand for HD or HEVC-enabled set-top boxes in North America.
- Latin America Trends
The number of pay TV subscriptions is expected to increase in Latin America due to the increased digitization of broadcasting in several countries in the region in the coming years. The majority of the countries have adopted the integrated services digital broadcasting (ISDB-T) International standard, which is based on the Japanese ISDB-T standard. According to Cisco VNI, the number of connected TVs is expected to reach 265.9 million by 2019. In Latin America, the Internet video-to-TV traffic is expected to expand at a CAGR of 49.5%, during the period from 2014 to 2019. These factors are anticipated to support the adoption of hybrid and IPTV set-top boxes in Latin America in the coming years. Moreover, the number of 4K TVs is expected to reach 36.5 million by 2019. This is expected to boost the adoption of HD set-top boxes in Latin America in the coming years.
Global Set-Top Boxes Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Every country has announced lockdown to contain the spread of coronavirus. As people are staying at home and curious to know more updates on coronavirus, the demand for watching news channels increased. For instance, in April 2020, according to Broadcast Audience Research Council (BARC), total TV viewership increased to 21% from 7%, as most of the people watched news channel to get updates of the COVID-19. Streaming service providers such as Netflix, Amazon Prime Video, and Zee5 are used by people for entertainment which increased the pressure on networks. However, the decline in manufacturing of products in countries such as India and China have impacted the market.
Major companies operating in the global set-top boxes market are Humax Co., Ltd., Sagemcom SAS, Huawei Technologies Co., Ltd., Kaonmedia Co. Ltd., Technicolor SA, EchoStar Corporation, ADB (Advanced Digital Broadcast) SA, ARRIS Group, Inc., Apple, Inc., and Samsung Electronics Co. Ltd.
Key companies in the market are focused on product launches, in order to expand the product portfolio. For instance, in September 2019, Sagemcom SAS launched a new Box 8 TV set-top box for SFR.