The set top box market is predicted to increase at a CAGR of 3.6% to USD 27.8 million by 2030, up from USD 19.2 billion in 2020.
Significant advancements in digital technology, accompanied by a surge in broadband service adoption, propel the APAC share of the global set top box market. Moreover, incorporating motion sensors and cameras into set top boxes (STBs) drives market growth. Prominent players are also introducing smart remotes with gesture control for STB operation. These remotes utilize ultrasonic sensors and infrared light-emitting diodes to detect hand movements and transmit decoded signals to the STB. Collaborations between market players, content providers, and internet service providers amplify STB sales in various countries.
The APAC region is poised to become the largest market due to the escalating adoption of diverse set top boxes in nations like China and India. A substantial portion of the Asian population has long relied on TV cable and set top boxes for entertainment. The introduction of Smart TVs and HD channels has contributed to increased digital TV viewing, fueling the expansion of the set top box market. Dish TV India Limited's merger with Videocon D2h Limited in March 2018 exemplifies strategic consolidation within the industry, creating one of India's largest listed media companies. Such unions bolster industry growth and cater to mounting customer demand. Rapid internet adoption in APAC has also augmented the demand for set top box services. Mandatory set top box installations by local authorities have facilitated users' access to multiple Direct-to-Home (DTH) providers without necessitating a change in set top boxes. This interoperability enhances cable TV providers' services, complementing the industry's growth trajectory. Furthermore, the increasing disposable income within the population is projected to sustain the set top box market's expansion during the forecast period.
Impact of the COVID-19 Pandemic on the Set top Box Market:
The widespread closure of economic activities in response to the COVID-19 outbreak significantly impacted the entertainment industry, hindering the telecast of new episodes. This circumstance prompted populations in developing nations like India and China to turn to Over-The-Top (OTT) platforms for fresh entertainment and on-demand content. Notably, platforms like Netflix and Disney+ Hotstar observed a surge in Indian subscribers during 2020. Additionally, China, a global manufacturing hub, experienced a substantial decline in set top box production during the pandemic. Nevertheless, cable operators in the region initiated measures to mitigate the market's impact. DTH providers introduced deferred payment options to incentivize adoption, anticipating a 7–8% rise post-pandemic adoption.
In 2021, the demand for 4K content surged as binge streaming gained popularity, and the rise of hybrid video contributed to the need for mixed set top boxes. These developments are anticipated to reinvigorate the Asia Pacific market. For instance, Skyworth Digital's collaboration with Bhimavaram Community Network (BCN) marked Asia's first 4K RDK IPTV box, providing access to BCN's digital entertainment offerings. The growing demand for OTT and Video on Demand (VoD) aligns with the expansion of high-speed technologies. Furthermore, the influx of competing OTT providers offers users an array of content choices.
China dominated the market share in 2021, boasting over 378 million TV households and a multichannel penetration rate of 48%—equivalent to more than 180 million households. As digital penetration is projected to reach around 70% of cable homes within five years, the demand for local and international channels via satellite broadcasting is expected to drive set top box adoption. Despite being a manufacturing powerhouse, China's set top box production experienced a setback during the pandemic. To mitigate this, regional cable companies implemented various measures. Notably, SKY partnered with Kaonmedia in November 2021 to design a new hybrid set top box using Google's Android TV Operator Tier as the operating system. SKY enlisted Wyplay, Irdeto, and Kaonmedia to collaborate on the software and hardware development for the Sky Box.
The set top box market's size is segmented by product, content quality, and geography. Product categories include cable, satellite, IPTV, and others. Content quality is divided into standard definition, high-definition, and 4K. The set top box market analysis geographically encompasses North America, Europe, Asia Pacific (APAC), the Middle East and Africa (MEA), and South America.
The set top box market players include Humax, Technicolor, Huawei, Sagemcom, and Coship. Additionally, this study analyzed several other significant market players to provide a comprehensive view of the global set top box market and its ecosystem.