According to the new research report titled "Set Top Box Market Forecast to 2028 - COVID-19 Impact and Global Analysis," published by The Insight Partners, the market is expected to reach US$ 25,535.9 million by 2028, registering a CAGR of 3.4% from 2022 to 2028.
The advancement of technology has resulted in the introduction of a wide range of set-top boxes (STBs) with diverse features, leading to increased competition among STB providers. Digital video recording (DVR) capability is a highly sought-after feature in STBs, allowing viewers to record and watch their favorite TV shows at their convenience. Over-the-air DVR systems are standalone STBs that enable transmission and recording of TV programs. In addition to DVRs, subscription-based TV service providers also offer STBs to consumers. For example, DISH, a US-based television provider, has incorporated artificial intelligence (AI) into its new STBs to enable recording capabilities. Companies are also integrating voice command features using technologies like natural language processing (NLP) to simplify channel and show searches. ZTE, for instance, has introduced its far-field 4K AI STB S200, which can be controlled with voice commands. The S200 serves as a home assistant with all-in-one features, including IPTV/OTT services, smart speakers, home access, home media sharing, and home networking.
The inclusion of interactive features such as video-on-demand and electronic program guides has become increasingly common in satellite set-top box (STB) units. These units now offer a wide range of multimedia facilities, including internet browsing, email, and instant messaging, directly via the consumer's television device. The integration of DVR functionality in cable and satellite STBs has also become prevalent, allowing viewers to enjoy content at their convenience. The use of advanced video codecs such as MPEG-4.10 (H.264) and SMPTE 421 M (VC-1) has enabled more content sources and reduced the risk of early product obsolescence, driving technological advancements in the set top box market.
STB devices across all tiers are becoming more advanced, offering better use cases and experiences for end users. For example, the integration of super-resolution technology in STB devices, which uses a combination of AI and conventional video processing techniques to upconvert video sources from lower resolutions to 4K or even 8K in some high-end devices, is becoming increasingly common. The upcoming large-scale sporting events such as the 2022 FIFA World Cup in Qatar and the 2022 Winter Olympics in Beijing are expected to further fuel the adoption of 8K STBs among consumers, driving the demand for high-quality STB devices in the market. This assessment of STB devices' quality is predicted to be a driving factor in the set top box market.
The Asia Pacific region is expected to exhibit the fastest compound annual growth rate (CAGR) during the forecast period, followed by the Middle East and Africa (MEA) and South America. This growth is driven by factors such as economic growth and favorable market conditions in countries like China, India, the Rest of APAC, Japan, and South Korea. Additionally, technological advancements in satellite telecasting in selected Asian markets like Indonesia, the Philippines, and Vietnam are driving the demand for advanced set-top boxes, further boosting the set top box market in the region. Countries like Taiwan, Malaysia, Indonesia, and Singapore are witnessing an increasing demand for IPTV and OTT service providers, creating profitable growth opportunities for cable TV STBs. The growing viewership from the IPTV and OTT segments is expected to positively contribute to the set top box market in the Rest of APAC region.
The set top box market size is segmented based on product, content quality, and geography. Based on product, the set top box market analysis is categorized into cable, satellite, IPTV, and others. In terms of content quality, the set top box market size is segmented into standard definition, high-definition, and 4K. Based on geography, the set top box market analysis is primarily segregated into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
Key Findings of Study:
The set top box market growth is segmented into five major regions, namely North America, Europe, Asia-Pacific, Middle East & Africa, and South America. In 2021, Asia-Pacific (APAC) led the market with the largest share, followed by Europe and North America. APAC is also expected to exhibit the highest compound annual growth rate (CAGR) during the forecast period.
In North America, the United States held the largest share in the set top box market in 2021. The increasing adoption of television across the population of the US is driving the demand for set-top boxes for enhanced broadcasting. For instance, approximately 120.6 million households in the US have reported having TVs in their homes. Moreover, currently, 96.1% of US homes with televisions are receiving conventional TV signals via over-the-air, cable, DBS, or Telco, or via a broadband Internet link connected to a TV set, which is a 0.2% increase from 95.9% in 2019. This rising adoption of television is driving the demand for set-top boxes in the US, contributing to the growth of the set top box market.
In April 2022, CommScope and Orange Belgium released a next-generation set-top box through their collaboration. This partnership enables Orange Belgium's ecosystem partners and CommScope's technologies to work together to offer live TV and streaming services. Customers of Orange Belgium will have access to CommScope's 4K Ultra HD digital video decoders, which provide improved OTT streaming, on-demand, and broadcast TV services. Customers will also have access to CommScope's new multiscreen cloud recording service and several streaming applications. These factors are expected to create lucrative business opportunities for set top box market providers.
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