Global Set-Top Box Market Extends at a Healthy CAGR of 3.25% by 2030

Introduction

The television industry is experiencing rapid expansion due to technological advancements and the expanding use of smart home technology worldwide. Globally, vendors are significantly innovating their products to meet client and market demands. A set-top box is a device that allows consumers to stream video content via the internet from select internet video providers. These devices, also known as Set-Top Units, convert a digital television signal to analog so it can be viewed on a standard television set. They also enable the viewing of cable or satellite television.

Market Dynamics

Technological Innovations Prompt the Global Set-Top Box Market

Artificial intelligence is increasingly used in set-top boxes because it improves picture quality. SK Broadband has announced that AI Sound Max will debut in 2021. This set-top box combines the latest advances in artificial intelligence with Bang & Olufsen's premium audio technology. In addition, AI technology improves voice functions for complex applications and enhances the user experience. New voice navigation technologies have been made available. In 2021, Technicolor Connected Home and Sky Brazil introduced Sky Connect, a set-top box (STB) equipped with Google Assistant far-field speech technology. It enables Brazilian subscribers to navigate entertainment content on their televisions. The tool facilitates selecting preferred television programs, video games, music, and other information sources. 

Utilizing Wi-Fi 6 technology broadens the market appeal of set-top boxes. ZTE announced the June 2021 release of an Android set-top box with Wi-Fi 6 technology. The addition of Wi-Fi 6 allows for increased speed with decreased interference and latency. Moreover, in terms of connectivity, the introduction of 5G set-top boxes is driving market growth concurrently with the rapid advancements in 5G deployment worldwide. Businesses such as CommScope and ZTE have already introduced 5G-capable set-top boxes. Modern set-top boxes have developed a new processor or central processing unit (CPU) to ensure fluid browsing and application operation. Android set-top boxes offer great music, OTT, and gaming applications. These demanding programs require a processor that runs smoothly, increasing viewer interest. Thus, technological advances have contributed significantly to the growth of the set-top box market.

Growing Adoption in Emerging Nations Creates Untapped Growth Potential

The emerging markets are India, China, Brazil, and Russia. Internet and broadband penetration are increasing in emerging markets, influencing the growth of internet-based set-top boxes. According to the China Internet Network Information Center, the number of Chinese internet users increased from 854.49 million in 2019 to 988.99 million in 2020. State agencies in emerging economies are mandating the digitization of traditional cable networks, promoting industry expansion. According to a 2021 proposal published by the Indian Ministry of Information and Broadcasting (MIB), the Cable Television Network (Regulation) Act, which includes DPOs discussing the broadcast of programming using digital addressable systems, etc., will be amended.

The rising demand for high-definition televisions in developing nations creates new market opportunities. The sales volume increased in Japan, Brazil, Australia, Indonesia, and Russia. AdoptionAdoptingvisions in developing countries generate demand for set-top boxes that deliver the content of the ultra-HD resolution. Vendor contents are actively improving STB capabilities. Dish TV India Ltd. introduced an entire line of smart devices, including a voice-activated Alexa-integrated smart kit and an internet-capable HD Set-Top Box based on Android, in October 2019. As a result of these factors, more prospects are created.

Regional Insights 

Asia-Pacific will command the largest market share. Regional government initiatives have aimed for an expansion of STB deployment. Due to high demand, especially in rural areas, the Malaysian government has announced plans to distribute an additional 1 million MYTV digital TV decoders for free in 2020. The government is attempting to expand broadband connectivity while ensuring digital TV broadcasts are unaffected. The deputy communications and multimedia ministry contribute to this effort. MYTV's digital TV service is available without an internet connection. It utilizes terrestrial DVB-T2 signals, collected by a UHF antenna and connected to a DVB-T2-compatible television or decoder box. Favorable government policies mandating the installation of set-top boxes in Asian nations are driving the growth of the Asia-Pacific set-top box industry. The region's abundant labor and resources contribute to the region's low production costs, which contribute to the region's expanding market. Technicolor and other companies are increasing their production capacity in Asia, particularly India.

Europe will also hold a significant share during the forecast period. The expanding use of AI by Pay TV providers in the region presents numerous opportunities for STB manufacturers. It has proven more cost-effective than cloud computing by enabling edge processing in STBs. This is because bandwidth costs do not decrease as rapidly as the cost of computation and storage. Utilizing the edge in STBs can significantly reduce latency, allowing service providers to improve the user experience by enhancing audio capabilities such as automated voice recognition. In addition, the European Union established Ecodesign regulations (2009/125/EC) to govern the production and sale of energy-efficient set-top boxes. However, as the market for set-top boxes (STBs) has evolved, security concerns and control over analytical data have become obstacles. It enables technology to maintain user-centric privacy, simplifying General Data Protection Regulation issues.

Key Highlights

• The global set-top box market had a revenue holding of USD 22.57 billion in 2021. It is expected to reach USD 29.2 billion by 2030, growing at a CAGR of 3.25% during the forecast period (2022–2030).
• Technology-wise, the global set-top box market includes Satellite/DTH, IPTV, Cable, and Others. The IPTV section is forecasted to hold the largest market share over the forecast period.
• Resolution-wise, the global set-top box market includes SD, HD, and Ultra-HD & Higher. The HD section is forecasted to hold the largest market share over the forecast period.
• Region-wise, the global set-top box market is analyzed across North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific will command the leading market position over the forecast period.

Competitive Players

Competitive Players in the Market

• ARRIS International PLC (CommScope Inc.)
• Technicolor SA
• Intek Digital Inc.
• HUMAX Electronics Co. Ltd
• ZTE Corporation
• Skyworth Digital Ltd
• Sagemcom SAS
• Gospell Digital Technology Co. Limited
• Kaon Media Co. Limited
• Shenzhen Coship Electronics Co. Ltd
• Evolution Digital LLC
• Shenzhen SDMC Technology Co. Ltd

Recent Developments

Market News

• In 2022, ZTE Corporation announced the "ZTE Privacy" emblem and launched the privacy protection brand for its mobile devices. The words "Shield" and "Protection" served as the basis for the privacy protection emblem, representing ZTE's dedication to upholding user privacy. 

Segmentation

Global Set-Top Box Market: Segmentation

By Technology

• Satellite/DTH
• IPTV
• Cable
• Others

By Resolution

• SD
• HD
• Ultra-HD & Higher

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World