Set-top box market will expand at a recognizable rate between 2023 and 2032, led by the increasing adoption of IoT and smart home appliances.
Rapid urbanization and increasing disposable income across developed and developing economies are likely to fuel the demand for smart home devices such as smart lighting, fans, smart doorbells, and an array of smart gadgets. The advent of electrification and automation is set to boost the integration of IoT in the space of smart homes. In recent years, smart set-top boxes (STBs) and streaming devices have emerged popular due to the growing consumer engagement in online entertainment platforms such as Hulu and Netflix.
The market is classified into type, recording, sales channel, end-use, and region.
By type, the market is categorized into hybrid and satellite. Among these, the hybrid set-top box market size will reach over USD 4 billion by 2032. Hybrid devices are gaining significant traction as they allow users access to satellite TV, traditional cable set-ups, and streaming devices all via a single device. It ensures flexibility and provides a convenient, and cost-effective solution to consumers. Various companies worldwide are addressing the rising demand for hybrid modalities by introducing innovative solutions.
For instance, in September 2022, Realtek Semiconductor, a Taiwanese semiconductor giant, unveiled a new RDK & android TV hybrid set-top box, co-developed with Irdeto, a leading expert in digital platform cybersecurity.
In terms of recording, the industry is segmented into DVR and non-DVR. The set-top box market share from the DVR segment was more than USD 10 billion by 2032. The growing consumer demand for high-performance devices that can effectively offer more control over the type and time of content viewed. As a result, industry players are developing advanced set-top boxes featuring modern DVR recording systems.
With regard to sales channel, the market is divided into online and offline. The growing space of e-commerce and inclination toward personalized shopping experiences is accelerating online sales of set-top boxes. Online retailers offer various discounts and offer a comprehensive overview of product ratings and reviews. Consumers seeking affordable home appliances and devices prefer online platforms due to the availability of schemes such as EMI.
Regionally, Europe set-top box market will exhibit over 4.5% CAGR between 2023 and 2032, driven by the growing trend of cloud gaming among the young population across countries such as Germany, and the UK. Moreover, the increasing demand for high-definition (HD) videos and high-resolution content with sharp picture quality will spur industry growth in the region.