The global set-top boxes (STB) market is highly fragmented with the inclusion of many regional players. Pace PLC, ARRIS Group, Inc., Cisco Systems. Inc., and Echostar Corporation are the key providers of set-top boxes and collectively held a 29.1% share in the market in 2014. The other prominent players in the market include HUMAX Electronics Co., Ltd., Huawei Technologies Co., Ltd., Technicolor SA, Apple Inc., Samsung Electronics Co. Ltd., Kaonmedia Co. Ltd., and Sagemcom SAS.
Due to fast digitalization of television viewing services, set-top box manufacturers are able to capitalize upon the market, as a large section of the population is switching from cable TV services to set-top boxes. Set-top boxes also offer better and more HD quality channels, thereby propelling the market growth.
To be in the game, many established players are heavily investing in research and development to implement modern semiconductor technologies and software. Mergers and acquisitions are also taking place between paid TV operators and set-top box manufacturers, states Transparency Market Research (TMR) in a report. A case in point would be of EchoStar Corporation. In June 2015, EchoStar Corporation launched Slingbox M2, which can be connected to a cable or satellite STB and the content can be viewed on connected devices such as computers, tablets, and smartphones.
According to the TMR report, the global set-top boxes market is projected to be valued at around US$24 bn by the end of 2022 from its initial value of US$16.6 bn in 2016, and is expected to progress at a CAGR of 6.4% within the forecast period of 2015 to 2022.
Cable Set-top Boxes Dominate Market Based on Type
Based on type, the global set-top boxes market is segmented into cable STB, satellite STB, Internet Protocol television (IPTV) STB, and hybrid broadcast broadband (HBB) STB. A significant market share is expected to be held by cable set-top boxes and will continue to lead the market till 2022. IPTV is also projected to contribute towards market growth due to increased popularity.
The demand for high definition (HD) devices has been instrumental in the growth of the market and the segment of HD set-top boxes is expected to grow further during the forecast period. With improved resolution (over 1080p) of video content transmission and enhanced audio output along with surround sound, the demand for STBs delivering HD quality content has tremendously increased over the years. Due to heavy demand for HD quality content, sports and motion picture production companies are producing mainly high definition content, thereby propelling the growth of this segment.
Asia Pacific’s High Population Density a Boon for STBs
Rapid industrialization has led to increased disposable income and is a major factor for the growth of the STB market in Asia Pacific. Being the largest regional consumer of STBs in the world, it is projected to register a massive CAGR during the forecast period – generating revenue of US$9.72 bn by the end of 2022.
Moreover, with the help of a booming IT industry, this region can avail the benefits of better Internet services and infrastructure, which will allow users to stream videos on demand at affordable prices. The high population density acts as a bonus for STB players, making this region a lucrative market.
This review is based on the findings of a TMR report titled ‘Set-Top Boxes Market Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2022.’
Global Set-Top Boxes Market, by Type
- Cable STB
- Satellite STB
- IPTV STB
- HBB STV
Global Set-Top Boxes Market, by Video Quality
- Standard Definition STB
- High-definition STB
Global Set-Top Boxes Market, by Geography
- North America
- Asia Pacific
- Latin America
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