Conditional access systems (CAS) are the content protection solutions used to manage and deliver content only to the authorized subscribers. The main function of conditional access systems is to descramble and decrypt the receiving signals into intelligible format. Conditional access systems are used for content protection in pay television (pay TV) services, internet-based services and digital radio. These CAS solutions are installed on the subscriber’s receiving devices such as set-top box. Conditional access systems, also called as revenue protection, is one of the most important network components for service providers for curbing revenue losses occurring due to piracy.
The most significant factor fuelling the growth of conditional access systems market is the ongoing digital television transition worldwide. Due to mandatory installation of digital television globally, the demand for set-top boxes is predicted to witness high demand in the coming years, thereby driving the market for conditional access systems. The demand for conditional access systems is also driven by the rising piracy issues growing across the globe. Another significant factor boosting the market growth is the rising advancements in digital television, internet services and digital radio services. However, the market growth of conditional access systems is mainly hampered due to the high operational costs borne by the CAS providers. This is mainly in the regions where customer base for digital television is less.
The global conditional access systems market is also driven by the growing penetration of internet-based services such as internet protocol television (IPTV), on-demand video and others in different geographic regions. The demand for conditional access solutions in these applications is mainly fueled from the developed regions having large penetration of IPTV and on-demand video services. Further, the global conditional access systems market is predicted to witness strong growth due to various advancements in the conditional access solutions. Most of the companies are now focusing on development of advanced solutions such as cloud-based conditional access systems, multi-screen CAS and others.
The global conditional access systems market is segmented into type of solutions, application and geographic regions. On the basis of solution type, the market is segmented into smartcard-based CAS and card-less CAS. In 2014, the smartcard-based CAS segment accounted for the largest share, in terms of revenue and adoption, in the global conditional access systems market. This was majorly due to the prolonged existence of these solutions in the market. However, the card-less CAS segment is estimated to witness the highest demand during the forecast period. This is attributed to high advantages such as low costs, easy upgrading and maintenance offered by these solutions over smartcard-based CAS. Another factor driving the growth of card-less CAS segment is its less susceptibility towards hacking. Furthermore, on the basis of applications, the global conditional access systems market is segmented into television, internet services and digital radio. The global market for conditional access systems was dominated by the television segment in 2014. The highest market share of television segment is attributed to the rapidly growing penetration of digital television worldwide. In addition, the television segment is predicted to hold its dominant position throughout the forecast period due to ongoing digital television transition in countries such as China, India, Brazil, Argentina, Mexico and others.
In 2014, North America accounted for the largest share of over 31%, in terms of revenue, in the global conditional access systems market. This is due to the high penetration of advanced digital television services such as high definition (HD) television and substantially growing adoption of Ultra HD (UHD) television. However, the global conditional access systems market is estimated to witness the highest growth in Asia Pacific during the forecast period. This is due to the rapidly increasing adoption of digital television in China and South Asia.
The major companies in the global conditional access systems market include Cisco Systems, Inc., Nagravision SA (Kudelski Group), China Digital TV Co., Ltd., Verimatrix, Inc., Irdeto, Inc., Austrian Broadcasting Services GmbH & Co. KG (ORS Group), Viaccess-Orca (Orange Group), Coretrust, Inc., Latens Systems Ltd., Wellav Technologies Ltd. and Alticast Corporation. The global conditional access systems market is highly consolidated in nature with top three players namely Nagravision SA, Cisco Systems, Inc. and China Digital TV Holding Co., Ltd. accounting for over 70% of the market share. Other important players in this market include Irdeto, Inc., Viaccess-Orca and Verimatrix, Inc.
Conditional access systems (CAS) refer to content security solutions used to restrict unauthorized subscribers from accessing paid digital broadcast services. Content security using CAS is achieved by encrypting/scrambling digital signals while broadcasting and then decrypting them at the user’s (authorized) end. Conditional access systems, also referred to as revenue security solutions, are mounted on set-top boxes or other receiving devices at the subscribers’ end. Conditional access systems are the most significant components used by service providers for protection against revenue loss. The most significant factor responsible for conditional access systems market growth is the rising penetration of digital/pay television, globally. Apart from pay televisions, CAS are also used for content protection in digital radio broadcast, internet protocol television (IPTV), and other internet-based subscription services.
The market for conditional access systems is segmented, based on the type of solutions, into smartcard-based CAS and card-less CAS. Smartcard-based CAS are the traditional systems that include additional hardware such as chip/smartcard with embedded conditional access software. This hardware is mounted on the set-top box in order to enable content security by providing access to authorized users. Due to the prolonged existence of smartcard-based CAS, this type of CAS currently has the highest penetration in global conditional access systems market. Card-less CAS, also called as software-based conditional access system, requires no hardware and the software is embedded directly onto the set-top box. The most significant advantage of card-less CAS is their low operating and upgrading costs as compared to smartcard-based CAS. In addition, software-based CAS offer better security against hacking than smartcard-based CAS.
This report studies the current scenario as well as future market potential for conditional access systems globally. The conditional access systems market has been segmented into three major applications: television, Internet services, and digital radio broadcast. The market for these CAS has been extensively analyzed on the basis of factors such as types of solutions and geographic regions. On the basis of solution type, the market has been segmented into smartcard-based CAS and card-less CAS. The market sizes and forecasts in terms of revenue (US$ Mn) for each of these segments have been provided for the period from 2012 to 2022, considering 2014 as the base year. The report also provides the compounded annual growth rate (CAGR) for each segment of the market for forecast period between 2015 and 2022.
Geographically, the global conditional access systems market has been segmented into five regions: North America, Europe, Asia Pacific, Middle East and Africa (MEA), and Latin America. The market size and forecast for each of the above regions has been provided for the period 2012 to 2022 along with the CAGR (%) for the forecast period 2015 to 2022. The study also includes qualitative analysis of the competitive scenario for major countries/regions in these geographic segments. The overview section of the report comprises qualitative analysis of the overall market highlighting the factors determining market dynamics such as drivers, restraints, and opportunities, along with the key trends analysis.
The report also provides a section on the competitive landscape, wherein the market positioning analysis of the leading players in conditional access systems market in 2014 has been discussed. Competitive strategies adopted by the leading players in the market has also been included under the section of competitive landscape. The report concludes with the profiles of major players in the global conditional access systems market such as Cisco Systems, Inc., Nagravision SA (Kudelski Group), China Digital TV Co., Ltd., Verimatrix, Inc., Irdeto, Inc., Austrian Broadcasting Services GmbH & Co. KG (ORS Group), Viaccess-Orca (Orange Group), Coretrust, Inc., Latens Systems Ltd., Wellav Technologies Ltd., Alticast Corporation and ARRIS Group, Inc.
Conditional Access Systems Market Segmentation:
Conditional Access Systems Market, by Solution Type
- Smartcard-based CAS
- Card-less CAS
Conditional Access Systems Market, by Application
- Internet Services
- Digital Radio
Conditional Access Systems Market, by Geography
- North America
- Asia Pacific
- Middle East and Africa (MEA)
- Latin America