Set Top Box Market Report: Size, Share and Outlook by 2031

The market for set-top boxes is anticipated to grow significantly, reaching a value of approximately US$ 25,535.9 million by 2028, up from US$ 20,855.1 million in 2022. This growth represents a compound annual growth rate (CAGR) of 3.4% from 2022 through 2028.

In recent times, High Definition (HD) and Ultra High Definition (UHD) displays have emerged as the prevailing standards, overtaking the previously dominant 1080p displays. The rising demand for dependable content, coupled with the versatility of HD set-top boxes (STBs) that can connect to both monitors and televisions, has made them an essential component of the viewing experience. Innovations in technology have resulted in a diverse array of STBs with various functionalities, which has heightened competition among manufacturers. A particularly sought-after feature is digital video recording, allowing users to capture their favorite programs for later viewing. Additionally, industry players are integrating new capabilities to ensure compatibility with 5G networks, as this technology is being rolled out in numerous countries.

The analysis of the set-top box market is categorized by product type, content quality, and geographical region. In terms of product classification, the growth of the set-top box market is divided into segments such as cable, satellite, IPTV, and others. Regarding content quality, the market is segmented into standard definition, high-definition, and 4K. Geographically, the growth of the set-top box market is primarily divided into regions including North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.

The cable segment was the leading category in 2021, holding the largest share of the set-top box market. The increasing adoption of cable connections worldwide is aimed at reducing discrepancies in satellite broadcasting. Although many consumers perceive STBs that connect to televisions as outdated, their sales continue to rise. In fact, over 300 million STB units were deployed globally in 2021. Concurrently, advancements in consumer electronics are creating new use cases and enhancing user experiences with added intelligence. There is a growing demand for increased computational power, advanced visuals, and machine learning capabilities due to evolving viewing habits.

Europe ranked second in the global set-top box (STB) market in 2019, and it is projected to maintain steady growth from 2022 to 2028. This growth is fueled by advancements in digital broadcasting technologies, greater internet and broadband access, and a rising appetite for on-demand video services and HD channels. The introduction of next-generation STBs, which facilitate multi-room TV networks and the sharing of portable media players, is also contributing to market expansion in Europe. Furthermore, leading market players are launching hybrid boxes that incorporate IP-based over-the-top (OTT) services, further boosting the demand for STBs in the region.

Set-top boxes are essential for connecting televisions to external signal sources, converting both analog and digital signals into visual content. They enable the reception of unencrypted subscribed channels and display them as encrypted channels through an addressable device. Additionally, STBs provide video storage, enhanced sound quality, and high-definition (HD) visuals, while also supporting telephony services for video conferencing, home networking, video-on-demand, and internet protocol (IP) services. In various parts of Europe, STBs are widely utilized to receive digital television broadcasts from cable, satellite, and over-the-air transmitters, and the demand for these devices is currently on a steady upward trajectory.

Impact of COVID-19 on the Set-Top Box Market

The COVID-19 pandemic and the resulting lockdowns have significantly influenced the set-top box market in Europe, leading to an increase in the television viewing audience. This surge has positively impacted the demand for set-top boxes as people are spending more time watching TV. However, the manufacturing and distribution of set-top boxes have faced challenges due to pandemic-related containment measures, resulting in a moderate impact on the market during the forecast period. There has also been a growing interest in internet-based set-top boxes, such as Internet Protocol Television (IPTV) and over-the-top (OTT) services, especially in developing countries with a tech-savvy population. The pandemic has accelerated the adoption of hybrid set-top boxes, particularly with the rise of fitness applications on digital TVs and STBs, driven by increased home exercise activities. This trend, along with the emergence of AI-powered set-top boxes featuring always-on voice command systems and digital assistant functionalities, is expected to support the gradual recovery of the set-top box market in the region.

Key global players in the set-top box market include Humax, Technicolor, Huawei, Sagemcom, and Coship. The STB industry is characterized by fragmentation, with numerous manufacturers operating in specific regions to meet local demand.

The overall size of the set-top box market has been determined through a combination of primary and secondary research methods. The research process began with extensive secondary research utilizing both internal and external sources to gather qualitative and quantitative data regarding the set-top box market. This process also involved obtaining an overview and market forecast for the set-top box market across all segments. Additionally, multiple primary interviews were conducted with industry stakeholders and experts to validate the data and gain deeper analytical insights. Participants in this process included industry professionals such as VPs, business development managers, market intelligence managers, and national sales managers, as well as external consultants like valuation experts, research analysts, and key opinion leaders specializing in the set-top box market.