Set Top Box Market Size, Share & Trends Analysis Report By Content Quality (HD & Full HD, 4K & Above), By Product (DTT, OTT, IPTV), By Distribution Channel (Offline, Online), By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global set top box market size was valued at USD 23.97 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 3.0% from 2023 to 2030. Changing consumer behavior patterns toward the consumption of media content over television and the internet amid the ongoing transitions in the digital TV domain are major factors enhancing the market outlook. Moreover, rising internet and broadband penetration, coupled with increased preference for HD channels and on-demand video services, are positively influencing the industry's growth.

The industry growth is proliferated by increased adoption of next-generation Set Top Boxes (STBs) that support internet-based services, Video on Demand (VoD), and television broadcasting. For instance, in 2021, GB News employed OTT services by Simplestream, a prominent U.K.-based service provider, complementing the former’s linear broadcast signal on DTT, DTH satellite, and cable. The project has been built on Simplestream’s app platform comprising a customizable framework for seamless content delivery for on-demand and live consumption. It also provides live-2-VOD integration for automated catch-up generation and removal of broadcast adverts, enabling dynamic ad replacement.

The global COVID-19 pandemic transformed the media landscape amid technology proliferation and integration of digital technologies. This, in turn, urged market players to adopt the latest technologies to replace conventional settings. In 2022, KAONMEDIA and 3 Screen Solutions (3SS) launched next-generation TV services for Scandinavia on a hybrid KAON BCM72180 PVR (set-top box), an Android TV STB that supports DTH satellite, OTT, and IPTV. The new solution was offered to over 1 million subscribers of Allente, a prominent TV distribution company in the Nordic region.

Android STBs are gaining significant popularity as they offer an enhanced and personalized experience, featuring a robust app ecosystem, voice recognition, TV Input Framework (TVIF), and video conferencing. Multiple connectivity options, such as Wi-Fi, Ethernet, HDMI, and Bluetooth, are also playing a vital role in driving the demand for the latest STB models. The integration of advanced technologies, such as Bluetooth Low Energy (BLE), voice-enabled remote, and Full HD and 4K/8K resolution support, in the latest STB models to make them stand out against the conventional STBs, also contributes to industry growth.

Product Insights

The OTT segment is anticipated to exhibit the fastest CAGR of 4.8% from 2023 to 2030, with the ongoing technological advancements allowing broadcasters to deliver improved sound quality and high-resolution picture quality. OTT platforms offer several enhanced features, including simplified payment methods, reduced time-to-content, and accessible time-shifted viewing. A significant surge in viewership across OTT platforms, such as Amazon Prime Video, Hulu, Disney+, and Netflix, is further contributing to the segment growth.

The cable STBs segment is expected to capture a significant share, in terms of volume, by 2030, owing to increased adoption across emerging economies of the Asia Pacific. Government mandates for cable digitization and benefits, such as increased channel carrying capacity offered by cable TV, are further driving the product demand. Having realized that cable TV remains the most popular platform, several cable service providers are improving their technology and service offerings. However, the adoption of cable TV has been dwindling over the past few years, in line with the shifting consumer preference toward technologically advanced content viewing platforms.

Distribution Channel Insights

On the basis of the distribution channel, the global industry has been further categorized into offline and online. The offline distribution channel segment dominated the industry in 2022 and accounted for the maximum share of more than 75.10% of the overall revenue. The high share of this segment can be attributed to the increasing product sales through electronics retailers, independent TV dealers, stores, and distributors. Several consumers prefer to buy electronic products from brick-and-mortar stores as they can immediately check the product quality and compare it with other similar offerings.

This factor leads to faster purchase decisions. On the other hand, the online distribution channel segment is estimated to register the fastest growth rate during the forecast period. This is on account of the rapidly shifting consumer preference for e-commerce platforms to buy electronic products. These platforms offer greater convenience, offers, discounts, and coupons, attracting a larger customer base. As a result, several companies offer STBs through other e-commerce platforms or their independent online sales channel.

Content Quality Insights

The HD & full HD segment dominated the industry in 2022 and accounted for the largest revenue share of more than 93.00%, owing to increased demand driven by accessibility to a broader variety of channels than their 4K counterpart. These STBs are gradually replacing conventional SD boxes as they offer improved sound and picture quality and exclusive channels. In addition, increased sales of smart TVs have also increased the demand for these STBs, thereby increasing segment growth.

The 4K and above segment is projected to grow substantially between 2023 and 2030, owing to increased demand for high-resolution content and sharp picture quality offered by these STBs. Moreover, favorable regulatory scenarios encouraging the installation of STBs and large-scale digitization programs across various countries are expected to drive segment growth. In the U.S., government authorities, such as the Federal Communications Commission (FCC), are pursuing favorable initiatives to support third-party STB manufacturers, thereby creating new growth opportunities for the manufacturers of 4K STBs.

Regional Insights

The Asia Pacific region dominated the industry in 2022 and accounted for the largest share of over 43.75% of the overall revenue, owing to the rising consumption of media and entertainment content, especially among the middle-class population in the region. Rising consumer demand for technologically advanced solutions providing high quality, functionality, and affordable pricing is creating lucrative opportunities for the industry. As a result, several prominent players, including Kaonmedia Co. Ltd. and Huawei Technologies Co., Ltd., are integrating the latest technologies, such as Bluetooth, motion sensors, and Virtual Reality (VR), into their products.

North America is also expected to have a significant CAGR from 2023 to 2030. The regional market is relatively saturated as most of the households already have such devices installed. It serves as a prominent hub for emerging Internet-based STBs, such as IPTV and OTT, featuring customizable configurations and high-quality video and sound content transmission. Moreover, the growing prominence of global OTT service providers, such as Netflix, Star TV Network, and Amazon Prime Video is also favoring the market expansion.

Key Companies & Market Share Insights

Several players in the industry are focusing on technological developments, new product launches, and strategic collaborations to strengthen their industry position. They are introducing Artificial Intelligence (AI) in STBs to provide personalized services, cut backend server costs, reduce human interference, and utilize the available bandwidth effectively. They are also integrating voice recognition technology for channel control, issuing other commands for services including weather and music, and enhancing digital signal strength.

For instance, in 2022, a prominent telecommunications provider ZTE Corp. launched the ZTE 8K set-top box in collaboration with Amlogic. The latest 8K STB provides immersive 4K UI and enhanced ultra-HD video quality, offering an excellent audiovisual experience to the audience. It also has powerful AI computing capabilities that facilitate 3D digital services, such as digital museums, digital theatres, and digital tours on TV. Some of the prominent players in the global set top box market are:

• Advance Digital Broadcast (ADB)

• CommScope (ARRIS International, plc)

• Coship Electronics Co.Ltd.

• Echostar Corporation

• Huawei Technologies Co., Ltd

• KaonMedia

• Sagemcom SAS

• Samsung Electronics Co. Ltd.

• Technicolor SA

• LG CNS Co., Ltd.

Set Top Box Market Report Scope

Global Set Top Box Market Segmentation

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global set top box market report based on product, content quality, distribution channel, and region:

• Product Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • IPTV

  • Satellite

  • Cable

  • DTT

  • OTT

• Content Quality Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • HD & Full HD

  • 4K & Above

• Distribution Channel Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • Offline

  • Online

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

    • Italy

    • Spain

    • Benelux

    • Nordic Countries

    • Russia

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Australia

    • Indonesia

    • Thailand

  • Latin America

    • Mexico

    • Brazil

    • Argentina

  • Middle East and Africa (MEA)

    • Saudi Arabia

    • UAE

    • Egypt

    • South Africa

    • Nigeria