Market Overview

The set-top box market is expected to register a CAGR of over 6% over the forecast period (2020 - 2025). The market is expected to witness demand for STB’s over the forecast period owing to the increasing penetration of high definition channels among consumers and the growing adoption of smart TVs.

  • High levels of technological innovations have led to the development of a wide range of STBs equipped with various features. Digital video recording is one of the most popular features as it enables viewers to watch and record their favorite shows.
  • Over-the-air DVR systems are a standalone set-top box that enables the viewers to broadcast and record TV programs. Apart from DVRs, subscription-based TV services providers offer STBs to customers. Moreover, DISH, US television provider has introduced AI in their latest set-top boxes.
  • Moreover, government regulations mandating the digitization of cable networks in economies such as India and China have boosted the demand for STBs in these counties.
  • The latest trend witnessing momentum in the market is the availability of TVs integrated with STBs. These TVs provide access to online video streaming platforms and social media. Additionally, they deliver better storage options with capacities up to 2TB.



Scope of the Report

A set-top box is a device that enables the television set to become a user interface to the Internet and also enables a television set to receive and decode digital television (DTV) broadcasts. In the current market space Set Top Box has become an integral part of TV viewing in many parts of the world.

Key Market Trends

Satellite Type have Witnessed Rapid Growth and is Expected to Hold a Significant Share

  • Satellite television is one of the most important applications of the set-top box market. One of the innovations in satellite TV is the introduction of a show recording facility that enables consumers to record their shows in real-time and watch it later according to their convenient times.
  • A country such as India is a huge market for set-top boxes. In addition to a thriving direct-to-home satellite business, the country is nearing the end of the digitization of its cable TV system, an effort which saw the massive upgrade of cable boxes across the country. For instance, India has around 67.56 million DTH subscribers in 2017 as compared to 66.09 million in 2016.
  • According to the Telecom Regulatory Authority of India (TRAI), the top five pay Direct to Home (DTH) providers added 80,000 net pay subscribers in the quarter ending September 2018.
  • There is a tough competition between Cable TV and DTH. However, TV viewers might be able to switch their DTH or cable service providers without changing the set-top box (STB) by the end of 2019, according to regulator Trai’s Chairman.
  • Moreover, in the United States, there is an increasing demand for IPTV and OTT which might challenge the growth of Satellite STB over the forecast period.



Asia-Pacific is Expected to Hold a Major Share

  • Asia-Pacific is expected to the largest market owing to the growing adoption of different set-top boxes in countries such as China and India. A large part of the Asian population still depends on set-top boxes and television sets for entertainment.
  • The introduction of Smart TVs and High Definition (HD) channels has led to an increase in digital TV viewing, which in turn will boost the growth of the Set-top box (STB) market.
  • In March 2018, Dish TV India Limited announced the completion of the merger of Videocon D2h Limited into and with Dish TV India Limited. With this acquisition, they created one of the largest listed media company in India and promised to lower the procurement costs of set-top boxes. Mergers of this stature supplement market growth and help in increase of demand from consumers.
  • Furthermore, growing disposal income coupled with the presence of numerous government regulations about the digitalization of wired cable television broadcast channels across the region is expected to boost the growth of the STB market over the forecast period.



Competitive Landscape

The television industry has been witnessing a myriad of changes over the past several years and has become more diverse than ever. The Set-Top Box market is now consolidated but is expected to be fragmented in the coming years owing to the entry of regional players in the market. The entry of new players intensifies the competition and reduces the profit margins of other vendors. The players are innovating continuously and increasingly seeking market expansion through various strategic mergers and acquisitions and partnerships.

  • January 2019 - TV provider Dish announced that the company is integrating its Hopper line of receivers with Google Assistant by integrating the smart assistant directly into its set-top boxes. This new integration builds on the DISH voice remote’s existing ability to control the TV experience, including navigation, search and content selection.
  • October 2017 - Huawei and Dolby Laboratories, Inc. announced that the Huawei Q22 set-top box is one of the first IPTV set-top boxes in the world to support Dolby Vision high-dynamic-range (HDR) technology. Dolby Vision transforms the TV experience in the home by delivering greater brightness and contrast, as well as a fuller palette of rich colors.



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