Set-top Box Market: Current Analysis and Forecast (2021-2027)

A set-top box is a hardware device that allows a digital signal to be received, decoded, and displayed on a television. The signal can be a television signal or Internet data and is received via cable or telephone connection. A rise in internet penetration coupled with the surging 4G or 5G technology globally is leading to the growth of the market. It was expected that globally, almost 85% of the population will be covered by a 4G network at the end of 2020. Moreover, between 2015-20, 4G network coverage increased two-fold globally.

Furthermore, around 93% of the world population has access to a mobile broadband network, less than half a percentage point higher than a year ago. FWA (4G and 5G) subscriptions will reach 473 million by 2030, representing 36% of the global fixed broadband users. APAC and Europe will represent almost half of the global 5G FWA subscribers. With 5G in the pipeline across a majority of the countries, allied market players are encompassing allied features to make the STB compatible for 5G networks. In October 2020, ZTE launched the first 5G converged set-top box with a gigabit gateway and router However, more than 68% of the households in the world excluding China do not have access to fixed broadband. This number is expected to decrease to 54% by 2030.

Moreover, the government across countries announced the regulations for mandating the installation of set-top boxes, deployment of open OS-based devices by STB vendors, and analog switch-off transition in emerging countries are further driving the demand of the set-top box market. For instance, the Government of India has made STBs compulsory through an amendment to the Cable Television Networks (Regulation) Act.

Additionally, the demand for better picture resolution, in line with the increase in the sales of high-definition TVs, is also pushing the growth of the market for the set-top box, which delivers HD and UHD content. According to Consumer Technology Association (CTA), the sales of 4K UHD TV sales increased from 91.5 million in 2018 to 108 million in 2019. Also, according to the organization, 4K UHD TVs accounted for almost 50% of new TVs sold in 2020. Also, technological innovations led to the development of a wide range of STBs equipped with various features. This, in turn, has made the competition fierce among the set-top-box companies. Digital video recording is one of the most desired features, as it enables the viewers to watch and record their favorite shows.

Based on product type, the market is fragmented into Cable, Satellite, IPTV, DTT, and OTT. The cable setup box segment grabbed the major market share and dominated the market in 2020. Moreover, the market of this segment would reach USD XX Mn by 2027. The demand for the cable setup box is emerging from the developing economies across the Asia Pacific due to low prices and accessibility. Cable TV remains the most popular platform for creating awareness and spreading messages among the masses, several cable service providers are improving their technology and service offerings. However, the OTT segment would witness the highest CAGR in the forthcoming years.

Based on the resolution type, the market is fragmented HD & Full HD, and 4K & Above. The HD & full HD segment captured XX% market share in 2020 and dominated the market. The services providers across regions are launching new services in the HD & full HD resolution, which is adding pace to the growth of the market. Vodafone TV added Facebook Watch to their STB in October 2021 in Europe to intensify their expansion into the region with HD content.

For a better understanding of the market adoption of the Set-top Box Market, the market is analyzed based on its worldwide presence in the countries such as North America (the United States and Canada), Europe (Germany, France, Italy, Spain, United Kingdom, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of APAC), and Rest of World. North America constitutes a major market for the Set-top Box Market industry and generated revenue of USD XX Million in 2020 owing to the presence of numerous companies offering Set-top Box in the countries such as the United States and Canada

Some of the major players operating in the market are Huawei Technologies Co. Limited, ARRIS International PLC (CommScope Inc.), Technicolor SA, Intek Digital Inc., HUMAX Electronics Co. Ltd, ZTE Corporation, Skyworth Digital Ltd, Sagemcom SAS, Samsung Electronics (M Box), Gospell Digital Technology Co. Limited etc. Several M&As along with partnerships have been undertaken by these players to develop Set-top Box across the globe.