IPTV Market Is Expected to Exhibit a CAGR of 19.0% During the Forecast period (2020-2027) - Coherent Market Insights

The Global IPTV Market, By End Users (Enterprises (Small, Medium and Large)), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East and Africa) - Global Forecast to 2027, is expected to be valued at US$ 269.9 Billion by 2027, exhibiting a CAGR of 19.0% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.

Overview

Internet protocol television (IPTV) is the process of distributing television content over IP, which offers additionally customized and interactive user experience. It delivers either stored video or live TV and is offered by the service providers. As IPTV delivers a video stream encoded as a seriesof IP packets, it enables the integration of PC, TV, home phone and wireless devices in order to offer these services anywhere and anytime. It can also be bundled with other IP services such as VoIP and high-speed Internet access.

The global IPTV market is estimated to account for US$ 269.9 Bn in terms of value by the end of 2027.

Market Driver

Rising need for high-quality online experience is expected to boost the global IPTV market growth over the forecast period

Interactive services packaged along with IPTV services drive adoption across end-user segments. Advancement in mobile devices and the explosion of internet content has ignited a global revolution in terms of how consumers interact with and access online content. Rising demand for better viewing experience has propelled the adoption of IPTV services worldwide. Therefore, these factors are expected to drive growth of the global IPTV market during the forecast period.

Market Opportunity

Mergers and acquisitions among market players can present lucrative growth opportunities in the global IPTV market

Key players in the market are focused on mergers and acquisitions, in order to enhance the market presence. For instance, in May 2014, AT&T Inc. acquired DirecTV, a broadcaster and broadband satellite service provider. Furthermore, in September 2013, Deutsche Telekom AG acquired DIGI SLOVAKIA, s.r.o., a digital TV service provider in Europe. 

Market Restraint

Constant competition from cable TV is expected to hamper the global IPTV market growth over the forecast period

Currently, consumers and video subscribers across the globe are demanding increased access to more live content from multiple locations on many devices. In order to cater to this requirement, the traditional video service providers are trying to increase their reach and address these customers over managed networks. However, leading IPTV service providers are finding ways to offer IPTV services and multi-screen services with the help of OTT multi-screen services (Unmanaged network). This requires even larger investment and more complex implementation. However, innovative content delivery networks (CDNs) and streaming solutions available in the market have reduced the need for high capital investment in order to offer multi-screen services over OTT. Thus, these factors are expected to hamper the global IPTV market growth in the near future.

Market Trends

1. Adoption of the smartest route by set-top box vendors

Growth of the IPTV market is directly proportional to the broadband penetration. Lack of infrastructure support and low awareness regarding the additional benefits being offered by IPTV services are the prominent factors inhibiting the growth of IPTV in the Latin America and the Middle East regions, apart from countries such as India in the Asia Pacific region. The government is encouraging digital media and connectivity, which has increased growth of pay-TV market in the past few years and this trend is expected to continue over the forecast period. Set-top box vendors are focused on utilizing this opportunity to boost their market revenue. They intend to increase their revenue across all segments: satellite TV, Cable TV, and IPTV. Besides, the little or negligible cost associated with OTT video content has boosted its demand, which in turn has helped the telcos to offer both OTT and IPTV services in order to increase their customer base.

2. Partnerships and collaborations among market players

Major market players are involved in partnerships and collaborations, in order to gain a competitive edge in the market. For instance, in October 2014, Bharti Airtel Ltd. partnered with Samsung Electronics for the development of Integrated Digital TV (iDTV). In September 2014, Broadcom Corporation partnered with Vodafone Germany to power Broadcom’s Ultra HD set-top box (STB) technology.

Global IPTV Market - Impact of Coronavirus (Covid-19) Pandemic

Due to Covid-19 pandemic, many industries witnessed significant shift in their business. Media consumption is expected to witness a substantial increase due to lockdowns enforced in several countries across the globe to contain the spread of the covid-19 pandemic. As consumers are forced to stay at home, the demand for OTT services by popular providers such as Netflix, Amazon Prime, etc. or renewing/enhancing their existing Pay TV packages, procuring IPTV subscriptions, etc. has increased. eSports is also another sector which is expected to drive market growth as most of the people are staying at home, the demand for virtual games has increased. This, in turn increases the growth of global IPTV market.

Competitive Section

Major companies operating in the global IPTV market are AT&T, Inc., ARRIS Group, Inc., Bharti Airtel Limited, MatrixStream Technologies, Inc., CenturyLink, Inc., Amino Technologies plc, Deutsche Telekom AG, Orange SA, Cisco Systems, Inc., and Broadcom Corporation.

Segmentation