Set Top Box Market Growth & Trends
The global set top box market demand is expected to reach 357.0 million units by 2028, registering a CAGR of over 4% in terms of volume from 2021 to 2028, according to a new report by Grand View Research, Inc. Mandates regarding the digitization of TV broadcasting issued by various governments across developing countries worldwide and the growing preference for smart TVs among consumers are some of the critical factors that are expected to drive the market growth. The growing preference for High Definition (HD) channels and the popularizing trend among broadcasters to offer various value-added services, including subscription packages, are also poised to trigger the demand for set top box (STB) over the forecast period.
The STB demand has witnessed a dramatic surge over the past few years owing to the continued efforts by the industry players to enhance the television experience for viewers by offering facilities, such as digital video recording, improved picture and sound quality, and storage options. As a result, cable service providers, telecommunication companies, and digital satellite providers are actively involved in the promotion and installation of STBs. Although the market has been witnessing dwindling sales and subsequently sluggish growth in the wake of the outbreak of the COVID-19 pandemic, the rising OTT viewership and growing preference for engaging media content has helped the market recover and grow gradually.
The rising adoption of Android and hybrid STBs in line with the growing popularity of OTT platforms is creating considerable growth opportunities for market incumbents. OTT STBs are increasingly gaining traction across the Pay-TV broadcasting scenario in the emerging markets with abundant availability of free video content. Moreover, major OTT platforms, such as Netflix and Amazon, have also been offering high-quality 4K content to their subscribers, thereby driving the STB demand and subsequently supporting significant revenue generation.
Set Top Box Market Report Highlights
- Few companies in the market have introduced their 4K UHD variants as part of the efforts to strengthen their position in the market. As a result, other competitors have also embarked upon efforts to launch their respective STB versions
- In North American countries, government bodies, such as the Federal Communications Commission (FCC), have drafted various standards about STB installation and content creation, thereby creating lucrative opportunities for the growth of the regional market over the forecast period
- Rising awareness among consumers regarding the latest STBs that can support OTT and IPTV coupled with the continued rollout of high-speed broadband infrastructure across the emerging economies is projected to boost the STB demand over the forecast period
- Few market players are introducing STBs that can support major OTT platforms, such as Netflix, Amazon Prime, and Hulu, as part of the efforts to strengthen their position in the market