The global set-top boxes market is expected to progress at a CAGR of 6.40% from 2015 to 2022. By the end of 2022, the global set-top boxes market could reach US$24 bn, showing the massive scope of growth that this market possesses. As newer players join the market, the older ones will have to remain on their toes and introduce better services with improvements in display qualities.
Digitization Keeps Global Set-top Boxes Market Growing
One of the greatest drivers for the global set-top boxes market is the booming rate of signal digitization, which is being adopted by multiple broadcasters. This has especially benefitted pay TV operators. Moreover, the global set-top boxes market also accommodates interactive channels and services that further improve consumer appeal. Among the various geographical segments of the global set-top boxes market, the leader for 2014 turned out to be Asia Pacific, owing to the rapid rate of standardization of cable TV signals by shifting over to satellite signals. In 2014, Asia Pacific held nearly 31% of the global set-top boxes market. This region is also expected to be the fastest growing regional segment of the global set-top boxes market, exhibiting a 9.90% CAGR between 2015 and 2022. The primary cause of the region’s upswing in the global set-top boxes market is the large-scale digitization of cable TV services.
On the other hand, North America and Europe are currently matured regional markets for set-top boxes, and therefore show a slow and steady rate of growth. North America had a relatively early changeover to digitized signals, which means the market is now loaded with stable top-end players and multiple regional companies. The region’s growth in the near future can be expected to arrive through the introduction of IPTV and HBB set-top boxes.
The Highly Competitive Nature of the Global Set-top Boxes Market
Regardless of the rate of growth of the global set-top boxes market in any region, it is always a field of heavy competition. Players big and small vie for a piece of the TV viewing pie and offer multiple types of service perks to appease the masses. For instance, Sky plc, one the largest pan-European broadcasting names, has recently unveiled a brand new premium set-top box. The box allows a user to stream services from the “best of the web”. The move is made by Sky to compete against industry giants Netflix, Apple, and Amazon. The new technology, named Sky Q, will launch in 2016 and allows a user to watch shows on five different screens, with more than five times the storage capacity of the current set-top boxes in the market.
Meanwhile, China has recently banned 81 third-party apps that turn a TV into an Internet-streaming device via set-top boxes. The Chinese government is attempting to control the set-top boxes market in the nation, in order to stop the streaming of pirated media, such as sports games and other live events.