Global OTT Services Market – Snapshot
OTT services are delivered over the internet, however, they don’t have any involvement in the planning or provisioning of service. As these services are directly offered to consumers ‘over the top’ of internet service provider’s network, they have derived the name - over the top services. In response to the proliferation of smartphones and their compatibility with OTT applications, the demand for OTT services is poised to rise exponentially in the coming years. Likewise, affordable rates of high speed mobile internet has bolstered the adoption of OTT market at large.
The OTT service providers have emerged as tough competitors for telecom service providers and cable operators. The mobile network operator messaging revenue has already declined to a great extent in the last five years and the impact has started to show up in their voice revenues as well. Also, the number of cord-cutters and cord trimmers has gone up due to on-demand media content available and reasonable rates as compared to traditional cable operators.
The global over the top services market was valued at US$1,049.21 billion in 2017 and the demand for OTT is estimated to expand at a CAGR of 16.4% from 2017 to 2025, reaching a value of US$3,538.04 billion by 2025.
Premium and Subscription Emerge as Leading Segment based on Business Model
On the basis of business model, the market is segmented into premium and subscriptions, adware, and ecommerce. The premium and subscription business model segment emerged dominant with a share of nearly 48.5% in the overall market in 2017. The segment earns revenue from fixed fee that the customer pays to download and access their application. The memberships or freemium turned premium service applications are also part of premium and subscriptions’ business model. Revenue generated by the premium and subscription segment is expected to increase owing to the increase in revenue of OTT media content and cloud service applications. The adware business model that earns revenue from advertisements on OTT applications is also expected to contribute for the OTT market. The ecommerce business model earns revenue from sales of its own products and services.
E-services that comprise of e-learning, e-health, e-business and e-commerce was the largest application segment in terms of revenue in the OTT services market in 2017, generating a revenue of 447.60 billion. The e-services segment is also anticipated to hold its foremost place throughout the forecast period. Media content and cloud services are also expected to produce higher revenues in the forthcoming period owing to quick content and service on demand made available through high speed internet at a reasonable price.
Asia Pacific to Showcase Higher CAGR than Other Regional Segments
North America led the OTT services market in 2017 and is expected to remain dominant throughout the forecast period 2017 to 2025. The primary drivers for the growth of OTT services market in North America region are the highest mobile internet penetration levels as compared to other regions with internet speed from 13.1 Mbps to 14 Mbps in the U.S.A and Canada. Apart from North America, Europe and Asia Pacific are expected to experience significant growth in the OTT services market during the forecast period. TMR forecasts the Asia Pacific OTT services market to exhibit the highest CAGR of 16.1% between 2017 and 2025.
Based on end use, the global OTT services market can be bifurcated into personal and commercial segments. Among end-use verticals, the commercial segment emerged dominant in the OTT services market. Within the commercial segment, the ecommerce sector held the largest share of 32.1% in 2017. Apart from ecommerce, the media and entertainment, IT, education, and healthcare held considerable share within the commercial segment. This trend is expected to continue prevailing in the coming years owing to the increasing application of OTT in media and entertainment, and ecommerce.
Major OTT services market players profiled in the report are Amazon Inc., Twitter Inc., Netflix, Inc., Facebook, Inc., Dropbox, Inc., Google, Inc., LinkedIn Corporation, Skype (Microsoft Corporation), Apple, Inc., Evernote Corporation, Hulu, LLC., and Rakuten, Inc.
Global OTT Services Market – Overview
OTT services are delivered over internet service provider’s channel, however they have no involvement of any sort in planning or provisioning the service. As these services are directly offered to consumers ‘over the top’ of internet service provider’s network, they are called as over the top services. Smartphone penetration and affordable high speed mobile internet packages are the major drivers for the OTT service market. The compatibility of the smart devices with these OTT services have made it possible to access them from anywhere and at any time. The report covers all the key developments and technologies that plays a significant role in OTT services market progress during that period. The study provides a complete perspective on the OTT services market’s growth during the forecast period in terms of revenue (in US$ Bn), across different geographies including North America, Asia Pacific, Europe, South America, and Middle East & Africa (MEA).
The market overview of the report determines the major market trends and the developments in the recent years. It also includes the drivers, restraints, and opportunities that encourage the current position and future prospects of the OTT market. Service and segment definitions help in understanding different types of OTT services which are incorporated in the report. A market attractiveness analysis has also been offered for every geographic region in the report to give an in-depth analysis of the competitive scenario of the global OTT services market. In addition, the report provides a synopsis of the various strategies of key players present in the market.
Global OTT Services Market: Segmentations
The report segments the global OTT services market on the basis of business model such as premium and subscriptions, adware and e-commerce. By application, the market has been classified into communication, e-services, media content, and cloud services. The media content is further classifies into audio/video, gaming and web content. By End-use Vertical, the market is segmented into personal and commercial. The commercial segment is further sub segmented into healthcare, IT, ecommerce, education, media and entertainment and others that includes Manufacturing, Energy and Transportation. Thus, the report provides in-depth cross-segment analysis of the OTT services market and organizes it into several levels, thus providing valuable insights at the micro and macro levels.
Global OTT Services Market: Research Methodology
The OTT services market estimates are the outcome of our thorough secondary research and in-house expert panel reviews. These market calculations have been evaluated by taking into account the effect of several political, technological, economic, legal and social factors besides the current market dynamics disturbing the OTT services market’s development. On the basis of country, North American market is divided into the U.S., Canada and Rest of North America. Similarly, Asia Pacific has been segmented into China, Japan, and Rest of Asia Pacific. Europe market is divided into U.K., Germany, France, and Rest of Europe. South American region comprises of Brazil and Rest of South America. Similarly, Middle East and Africa has been segmented into GCC countries, South Africa and Rest of Middle East and Africa. This report provides regional key trends and key findings for the OTT services in the particular geographies. Also, the report provides insights related to the policies and regulations according to the various geographical regions mentioned above. Additionally, Porter’s Five Forces analysis describes the aspects that are affecting the OTT services market at present.
Companies Profiled in Business Report
Facebook, Inc., Twitter Inc., LinkedIn Corporation, Netflix, Inc., Google, Inc., Skype (Microsoft Corporation),Amazon Inc., Apple, Inc., Rakuten, Inc., Evernote Corporation, Dropbox, Inc., Hulu, LLC. Electronic Instruments Co., Ltd are some of the major players in the global OTT services market that has been described in this study. Information such as financials, business strategies, SWOT analysis, recent developments, and other such strategic information relating to these companies have been accordingly provided as a portion of company profiling.
Segmentations of the OTT Services market:
By Business Model
- Premium and Subscriptions
- Media Content
- Web Content
- Cloud services
By End Use
- Media and Entertainment
- Others (Manufacturing, Energy and Transportation)
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Middle East and Africa (MEA)
- GCC Countries
- South Africa
- Rest of MEA
- South America
- Rest of South America