The APAC set top box (STB) market is expected to grow from US$ 7,516.7 million in 2019 to US$ 10,292.9 million by 2027; it is estimated to grow at a CAGR of 4.1% from 2020 to 2027.
The unification of set top box with OTT platforms drives the market growth. The growth of the market is mainly attributed to the growing need for next-generation STBs, which are integrated with internet-based services, television broadcasting, and video on demand (VoD) which also allows sharing on other devices, such as multi-room television networks and portable media players. In the modern age, the media and entertainment sector is undergoing a paradigm change mainly due to the emergence of various technologies and convergence of digital technologies. With the incorporation of fresh features and content protection schemes, set top box architectures are becoming more sophisticated. From offering separate cable and satellite boxes to hybrid boxes integrated with IP-based OTT services, the set-top box marketplace is undergoing a technological transition. Furthermore, growing awareness regarding internet-based set-top boxes such as Internet Protocol Television (IPTV) and OTT has boosted product demand, more prominently in developing economies, wherein the number of tech-savvy people is increasing rapidly. As a result, conventional manufacturers of cable networks are focusing on the sales of specialized hybrid set-top boxes to their customers. Thus, the integration of set-top box with OTT platforms to offer hybrid systems is emerging as a significant driver for the growth of the APAC set-top box market.
Countries in APAC, specially India and China, are adversely affected due to the COVID-19 outbreak. The sudden closedown of all economic activities across all countries in the region has highly impacted the entertainment industry, thereby not allowing them to telecast new episodes. As a result, the situation has influenced the huge population of the developing countries such as India and China to adopt OTT platforms for fresh entertainment and on-demand videos. For instance, Netflix increased its user base from about half that number in May 2020 to about 5 million. Also, in August 2020, Disney+Hotstar announced about 9 million subscribers in India. Moreover, China being the manufacturing hub of the globe has also experienced major downfall in the manufacturing of the set-top boxes during the pandemic. However, the cable operators across the region are taking several initiatives to reduce the impact on the market. The DTH providers have floated several deferred payment options to influence the adoption of the same in the region and expected to increase the adoption by 7–8% post the pandemic era. Thus, the above-mentioned factors are moderately influencing the growth of the set-top box market amid the outbreak pandemic.
The standard definition (SD) segment, based on content quality, dominated the APAC set top box (STB) market in 2019. Standard-definition television (SDTV, SD, and often shortened to standard definition) is basically a television system that uses a resolution that is not considered to be an either high or enhanced definition. SDTV and high-definition television are the two categories of display formats for digital television transmissions. Both the systems use a 4:3 aspect ratio. Standards that support digital SDTV broadcasts include DVB, ATSC, and ISDB. An SD set-top box can only access standard definition channels. Advantages of SD television such as cost-effectiveness, easy manufacturing, and easy configuration propel the demand for SD content quality TVs, which drives the APAC set top box (STB) market for standard definition (SD) segment.
The overall APAC set top box (STB) market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC set top box (STB) market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. Participants of this process include industry expert such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the APAC set top box (STB) market. Advanced Digital Broadcast SA; Altech UEC; CommScope; COSHIP; Huawei Technologies Co., Ltd.; Humax; Kaonmedia Co., Ltd.; Sagemcom; Skyworth Group Co., Ltd.; Technicolor SA; and Zinwell Corporation are among the players operating in the market.