The Global Set-Top Boxes Market, By Type (Cable Set-Top Boxes, Satellite Set-Top Boxes, IPTV Set-Top Boxes and HBB TV Set-Top Boxes), By Video Quality (Standard-Definition Set-Top Boxes and High-Definition Set-Top Boxes) 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$ 33.5 billion by 2027, exhibiting a CAGR of 6.4% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.

Overview

A set-top box is an information device that contains TV-tuner input and displays output to a television set. Set-top boxes are used in cable television, over-the-air television, and satellite television. 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 signal from the set-top box can be sourced from satellite receivers, cable connections, or broadband lines. 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 global set-top boxes market is estimated to account for US$ 33.5 Bn in terms of value by the end of 2027.

Market Driver

Rising adoption of hybrid set-top boxes is expected to accelerate growth of the global set-top boxes market during the forecast period

Hybrid set-top box offers the combined services of high-definition channels and internet-based TV services. It is provided by combining cable or satellite TV services with internet protocol TV (IPTV). Hybrid set-top boxes allow the operator to upgrade the system to a particular broadcasting medium in less time and decrease the network infrastructure cost considerably. They help operators compete with Internet-based OTT providers and boost the TV broadcasting market. Hybrid set-top boxes also enable a user to avail of traditional TV services and additionally opt for high-end services such as VoD, shopping, and gaming services.  According to Cisco VNI, the Internet video-to-TV traffic is expected to increase fourfold during the period from 2014 to 2019 at a CAGR of 31.5%. Therefore, these factors are expected to propel the global set-top boxes market growth over the forecast period.

Market Opportunity

Technological advancements in the field of set-top boxes can provide major business opportunities

Over the years, set-top-boxes have developed significantly, in terms of technology and operation. There are Android-based set-top boxes available in the market, which enhances the picture quality and can be connected to the internet. Key companies in the market can capitalize on these opportunities by providing novel products and gain a competitive edge in the market. 

Market Restraint

High production costs and vendor consolidation is expected to hamper the global set-top boxes market growth over the forecast period

Production and implementation cost for the set-top box is significantly high as compared to the conventional cable system. Besides the implementation of a set-top box is more expensive than the traditional cable system since it requires skilled workers. As a result of this, the adoption of set-top boxes is low, especially in emerging economies as consumers prefer cheaper options. Therefore, these factors are expected to hamper the global set-top boxes market growth over the forecast period.

Market Trends

  1. Europe Trends

According to the Ofcom International Communications Market Report (ICMR) 2014, Europe has experienced higher digitization of broadcasting than Asia Pacific and MEA. Countries such as the U.K. and Italy had 100% digital TV adoption by the year 2013. Furthermore, the adoption of digital TV is expected to be completed in France, Spain, Poland, the Netherlands, and Sweden during the forecast period. This is expected to boost the demand for cable as well as satellite set-top boxes in these countries. With the switchover to digitization, end-users there are taking advantage of HD channels, shopping, and PVR. These factors are expected to drive the market for PVR-enabled set-top boxes and IPTV in Europe during the coming years.

  1. Asia Pacific Trends

Asia Pacific is expected to experience significant economic growth during the coming years due to growth in the IT and industrial sectors. Due to increasing purchasing power and growth in adoption of new technologies among the populations of countries such as South Korea, China, Thailand, and India, the adoption of pay-TV service and ultra HD is expected to increase in the region. According to Ofcom ICMR 2014, the digitization process in China and South Korea reached 75% and 71%, respectively, by the year 2013. Furthermore, the digitization process in India had reached 56% by 2014 and the deadline for complete switchover was extended to 2017. The growth in digitization is expected to boost the demand for pay-TV subscriptions and further boost the demand for set-top boxes in these markets.

Global Set-Top Boxes 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 the demand for popular OTT services by providers such as Netflix, Amazon Prime, etc., renewing/enhancing their existing Pay TV packages, procuring IPTV subscriptions, etc has increased. This, in turn, is expected to drive demand for set-top boxes market.

Competitive Section

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.

Segmentation

Existing Clientele

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