GVR Report cover Set Top Box Market Size, Share & Trends Report

Set Top Box Market Size, Share & Trends Analysis Report By Product (IPTV, Satellite, Cable, DTT, OTT), By Content Quality (HD & Full HD, 4K & Above), By Region, And Segment Forecasts, 2021 - 2028

  • Report ID: 978-1-68038-752-0
  • Number of Pages: 140
  • Format: Electronic (PDF)
  • Historical Range: 2016 - 2019
  • Industry: Technology

Report Overview

The global set top box market size was estimated at 22.57 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of more than 3.2% from 2021 to 2028. The rising internet and broadband penetration and the growing preference for HD channels and on-demand video services are the factors expected to drive the market growth. Transitions across the digital TV arena have played a vital role in transforming the customers’ attitude towards the consumption of media content over the internet and television. A significant surge in the viewership across OTT platforms, such as Amazon Prime Video, Hulu, Disney+ Hotstar, and Netflix, is also expected to contribute to high revenue generation over the forecast period.

North America STB market Size, by Product, 2018 - 2028 (USD Billion)

With an increase in disposable income and the progressing middle-class population, the demand for media-rich home entertainment services among consumers is increasing. As such, the growing demand for next-generation Set Top Boxes (STBs) that can support internet-based services, Video on Demand (VoD), and television broadcasting are opening new opportunities for the market incumbents. The media landscape is also undergoing a paradigm shift in the wake of the outbreak of the COVID-19 pandemic, primarily driven by technology proliferation and integration of digital technologies. As a result, the leading companies are focusing on adopting the latest technologies to replace the conventional settings. At the same time, as a result of the lockdowns imposed in several countries as part of the efforts to contain the spread of coronavirus, individuals are spending a considerable amount of time indoors, thereby driving the demand for media & entertainment services. These shifting patterns are subsequently expected to drive the growth of VoD and OTT consumption and support significant revenue generation over the forecast period.

The demand for Android STBs is also growing significantly owing to the enhanced and personalized experience Android STBs can offer. Features, such as a robust app ecosystem, voice recognition, TV Input Framework (TVIF), and video conferencing, offered by Android STBs are fueling the demand for these devices. 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 set top boxes, also poses immense growth potential for the market over the forecast period.

Set Top Box Market Trends

The STB vendors are introducing Artificial Intelligence (AI) in set top boxes to provide personalized services, reduce backend server cost and human interference, and effectively use the available bandwidth. Also, they are integrating voice recognition technology for channel control and other everyday life commands related to weather, music, and digital signal strength. Efforts to integrate AI and voice interference in STB, along with a sleek design, are in full swing. Manufacturers in the market are developing low-cost STBs to meet rising client demand. Market leaders are offering technology- and feature-rich set-top boxes to achieve a competitive advantage. The increased use of OTT platforms has prompted various suppliers to form alliances, mergers, and acquisitions to expand their product offerings.

The emergence of open platforms, Android TV launchers, and OTT apps cut out the software middleware from the STB ecosystem. This creates an opportunity for the STB vendors to cut the overall cost and integrate the Android and RDK platforms to add value to their offerings. Android open-source platform allows the subscriber to use the apps directly from the Google Play store and is less expensive than traditional STB middleware.

The integration of advanced technologies in the STBs, such as full HD, 4K/8K resolution, voice-enabled remote, and Bluetooth Low Energy (BLE), makes them stand out compared to conventional set-top boxes. Besides, the android boxes have numerous in-built games and OTT applications, such as Amazon Prime, Netflix, and Hulu, for the users to access content online. Apart from the pre-installed applications, users also have the feasibility of installing additional applications available on the google play store.

Changing consumers' viewing habits towards IPTV and OTT platforms, such as Netflix, YouTube, Amazon, etc., is anticipated to create a significant demand for OTT-enabled STBs over the coming years. In addition, increasing demand for original and high-resolution content will further boost the market demand. Moreover, a rising inclination toward large TV screens and at-home entertainment is anticipated to create significant growth opportunities for 4K and 8K STBs in the near soon. Moreover, the companies are shifting their manufacturing facilities to their respective regions to streamline the distribution network and reduce the overall cost of STBs.

Product Insights

Cable STBs dominated the market in 2020 with more than 70 million units sold during the year. Substantial adoption of cable STBs in the developing economies across the Asia Pacific has particularly allowed the cable segment to dominate the market over the past decade. 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 for creating awareness and spreading messages among the masses, 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.

The OTT segment is anticipated to exhibit the highest CAGR of more than 6.0% from 2021 to 2028. The OTT industry has been witnessing significant advances in technology and allowing broadcasters to deliver improved sound quality and high-resolution picture quality. OTT platforms offer several enhanced features, such as simplified payment methods, reduced time-to-content, and accessible time-shifted viewing. Companies, such as Kaonmedia Co., Ltd., are focusing on introducing AI-enabled set top boxes supporting AI assistants, home IoT, media services, and video communication features. Several other leading companies, such as AVIQ Systems, have developed STBs aimed at operators willing to bundle their multi-screen strategy with a self-branded STB in addition to or in place of apps for smartphones, smart TVs, and tablets.

Content Quality Insights

Based on content quality, the set top box market is segmented into HD and Full HD and 4K and above. The HD and Full HD segment is anticipated to dominate the market with a volume and revenue share of over 90% over the forecast period, primarily owing to the range of benefits, including accessibility to a broader variety of channels than the 4K counterpart. The HD and Full HD STBs are increasingly replacing conventional SD boxes owing to the benefits, such as improved sound and picture quality and exclusive channels, they can offer. The growth in the sale of smart TVs and 8K TV sets has eventually increased the availability of HD services supported by these TV sets, which also bodes well for the growth of the segment over the forecast period.

Global STB market share, by content quality, 2020 (%)

The 4K and above segment is projected to grow substantially, exhibiting a CAGR of more than 8% from 2021 to 2028. The growth can be attributed to the rising demand for high-resolution content and sharp picture quality. A regulatory landscape favoring the installation of set top boxes and the large-scale digitization programs being pursued in various countries are expected to contribute to the growth of the segment. In the U.S., government authorities, such as the Federal Communications Commission (FCC), are pursuing favorable initiatives to support the third-party STB manufacturers, thereby creating new growth opportunities for manufacturers of 4K STBs. The 4K and above segment is anticipated to gain rapid traction in the Asia Pacific region, particularly because Asia Pacific countries, such as Taiwan, China, and South Korea, are home to several low-cost STB manufacturers.

Regional Insights

The Asia Pacific region accounted for the largest market share of over in 2020 and is expected to continue dominating the market over the forecast period. The rising consumption of media and entertainment content, especially by the middle-class population across the region, bodes well for the growth of the regional market. Growing public awareness of technologically advanced goods, as well as the benefits they provide in terms of quality, functionality, and economical price compared to traditional set-top boxes, are likely to increase product demand over the projection period. As part of their efforts to strengthen their market position, prominent manufacturers such as Kaonmedia Co. Ltd. and Huawei are aggressively integrating the latest technology, such as Bluetooth, motion sensors, and Virtual Reality (VR), into their products. The expanding OTT media services market is predicted to contribute to market growth.

The North American regional market is relatively saturated since most of the households across the region already have such devices installed. However, the area is expected to be attractive for emerging Internet-based STBs, such as IPTV and OTT, owing to features like 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, in emerging countries is expected to drive the growth exponentially.

Latin America is expected to grow rapidly over the forecast period from 2021 to 2028. Regional internet service providers' fierce competition has resulted in excellent internet speeds throughout the region. Simultaneously, various government-approved digitization initiatives have increased the demand for modern set-top boxes. Initiatives being pursued by different authorities for the comprehensive digitization of Pay TV services, as well as a paradigm shift in media consumption preference following the outbreak of the COVID-19 pandemic, are some of the other critical factors expected to drive market growth over the forecast period.

Set Top Box Market Trends by Region

The STB market is witnessed the stringent rules and regulations imposed by the local governing bodies. For instance, in April 2020, The Telecom Regulatory Authority of India (TRAI) recommended STBs' interoperability. TRAI advised all direct-to-home (DTH) operators and STB vendors in India to comply with the technological interoperability, which will allow the customer to change the TV network provider without changing the STB. Similarly, in July 2019, Ofcom, the regulatory and competition authority in the U.K., recommended a new framework of legislation and regulations for the public service broadcaster. Besides this, the Federal Communications Commission in the U.S. has imposed Video Accessibility Act (CVAA) to make video programming guides and menus accessible on television, STBs, and other devices. As a result, global STBs manufacturers find it challenging to fulfill all the rules without changing the approach in their manufacturing process. International players need to follow these regional regulations while manufacturing STBs, posing a challenge to them. 

Key Companies & Market Share Insights

The vendors are introducing Artificial Intelligence (AI) in set top boxes to provide personalized services, cut the 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. At present, market incumbents are aggressively focusing on integrating AI and voice interfaces within STBs while ensuring a sleek design. For instance, in August 2019, SK Broadband, Inc., a telecom company based in South Korea, launched AI 2 Set-top Box with AI assistance, stereo speaker, and voice recognition technology. IPTV set top box providers are also investing aggressively in technological innovations to cope with the continued transition from traditional TV to OTT platforms and are subsequently promoting service providers to enhance their service offerings. Some of the prominent players in the global set top box market are:

  • Commscope (ARRIS International, plc)

  • Coship Electronics Co. Ltd.

  • Huawei

  • Kaonmedia Co., Ltd.

  • Sagemcom SAS

  • Samsung Electronics Co. Ltd.

  • Technicolor SA

  • Advanced Digital Broadcast (ADB)

Set Top Box Market Report Scope

Report Attribute


Market size value in 2021

USD 23.5 billion

Revenue forecast in 2028

USD 29.24 billion

Growth Rate

CAGR of 3.2% from 2021 to 2028

Base year for estimation


Historical data

2016 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million/billion, Demand in thousand units, and CAGR from 2021 to 2028

Report coverage

Revenue and demand forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Content quality, product, region

Regional scope

North America; Europe; Asia Pacific; Latin America; MEA

Country scope

U.S.; Canada; U.K.; Germany; China; Japan; India; Mexico; Brazil

Key companies profiled

Commscope; Kaonmedia Co., Ltd.; Coship Electronics Co. Ltd.; Huawei; Technicolor SA; Sagemcom SAS; Advanced Digital Broadcast (ADB); Samsung Electronics Co. Ltd.

Customization scope

Free report customization (equivalent to up to 8 analysts working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Set Top Box Market Segmentation

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For this study, Grand View Research has segmented the global set top box market report based on product, content quality, and region:

Global Set Top Box Market Segmentation

  • Product Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

    • IPTV

    • Satellite

    • Cable

    • DTT

    • OTT

  • Content Quality Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

    • HD & Full HD

    • 4K & Above

  • Regional Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2028)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • Japan

      • India

    • Latin America

      • Mexico

      • Brazil

    • Middle East and Africa (MEA)

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