The set top box market size is projected to reach US$ 25,535.9 million by 2028 from US$ 20,855.1 million in 2022; it is expected to grow at a CAGR of 3.4% from 2022 to 2028.
In recent years, HD (High Definition) and UHD (Ultra High Definition) displays have become the new standard, surpassing the dominance of 1080-pixel displays in the market. With increasing demand for reliable content and the flexibility of connecting HD set-top boxes (STBs) to monitors and TVs, they have become a valuable addition to the viewing experience. Technological advancements have led to the creation of a wide range of STBs with various functions, intensifying competition among STB manufacturers. One popular feature is digital video recording, which enables users to record their favorite shows for later viewing. Furthermore, market participants are incorporating new features to ensure compatibility with 5G networks, as 5G technology is being deployed in many countries.
The set top box market analysis is segmented based on product, content quality, and geography. Based on product, the set top box market growth is categorized into cable, satellite, IPTV, and others. In terms of content quality, the set top box market analysis is segmented into standard definition, high-definition, and 4K. Based on geography, the set top box market growth is primarily segregated into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America.
The cable segment dominated in 2021 with largest set top box market share. To ensure less discrepancy in satellite telecasting distribution, the adoption of cable connections is increasing across the globe. Many people consider set-top boxes (STBs) that connect to TVs to be outdated, but their sales are nevertheless rising. Over 300 million STB units were deployed globally in 2021 alone. The gadget/advanced consumer electronics are changing at the same time, opening new use cases and enhancing the user experience with an additional layer of intelligence. Increased computation power, more sophisticated visuals, and machine learning skills are in increasing demand because of changing viewing preferences.
Europe held the second position in the global set-top box (STB) market in 2019, and it is expected to continue growing steadily from 2022 to 2028. The growth is driven by advancements in digital broadcasting technology, increased internet and broadband penetration, and rising demand for on-demand video services and HD channels. Next-generation STBs, which enable multi-room TV networks and portable media players to be shared, are also contributing to the market growth in Europe. Additionally, major market players are introducing hybrid boxes with IP-based over-the-top (OTT) services, further driving the demand for STBs in the region.
STBs play a crucial role in connecting TVs to external signal sources and transforming analogy and digital signals into visuals. They also allow for the reception of unencrypted subscribed channels and display them as encrypted channels via an addressable device. STBs also offer video storage, improved sound quality, and high-definition (HD) images, and support telephony services for video conferencing, home networking, video-on-demand, and internet protocol (IP). STBs are widely used in various parts of Europe to receive digital television transmissions from cable, satellite, and over-the-air transmitters. The demand for STBs in Europe is currently experiencing steady growth.
COVID-19 Impact on Set Top Box Market
The set top box market in Europe has been impacted by the COVID-19 outbreak and subsequent lockdowns, leading to an increase in TV viewing population. This has positively affected the demand for set-top boxes as more time is spent watching TV. However, manufacturing and distribution of set-top boxes in the region have been negatively affected due to containment measures during the pandemic, resulting in a moderate impact on the market over the forecast period. There is also an increased interest in internet-based set-top boxes such as Internet Protocol Television (IPTV) and over-the-top (OTT) services, particularly in developing nations with a growing population of tech-savvy individuals. The pandemic has also accelerated the adoption of hybrid set-top boxes, with the emergence of fitness applications on digital TVs and set-top boxes due to increased home-based exercise activities. This trend, along with the rise of AI-based set-top boxes with always-on speech subsystems for voice commands and digital assistant functions, is expected to contribute to the steady recovery of the set-top box market in the region.
The key global set top box market players profiled in the market study include Humax, Technicolor, Huawei, Sagemcom, and Coship. The STB industry is highly fragmented, with several set top box market players localized in a specific region to cater to domestic demand.
The overall set top box 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 about the set top box. The process also obtains an overview and market forecast of the set top box market size with respect to all the market segments. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data and gain more analytical insights into the topic. The participants typically involved in this process include industry experts 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 set top box market.