Cloud TV Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Cloud TV Market is segmented by Deployment (Public Cloud, Private Cloud, Hybrid Cloud), Service (Software as a Service (SaaS), Infrastructure as a Service (IaaS), Platform as a Service (PaaS)), Applications (Telecom, Entertainment and Media, Information Technology, Consumer Television), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The Cloud TV Market was valued at USD 1.96 billion in 2020 and is expected to reach USD 3.31 billion by 2026 and work at a CAGR of 9.12% over the forecast period 2021-2026. Cloud TV is essentially a cloud-based application which streams content such as TV channels, movies, shows, music, and several others. Cloud TV applications are easily installed on personal electronic devices and do not require much memory. A key driver of the global cloud TV market is the ability of cloud TV to provide HD capability for internet browsing, email, online gaming, and support for popular social networking platforms such as Skype, Twitter, and Facebook. Additionally, the high demand for HD resolution in content consumption is expected to drive market growth. Another vital factor driving the growth of the global cloud TV market is the pre-installation of cloud TV apps of smart television sets to promote adoption.
Cloud TV platform can be installed on any device, such as television sets, mobile phones, tablets, media boxes, which make it a tool with ease of accessibility. This platform eliminates the need for multiple service providers for cable and the internet, which is one of the primary selling points offered by the OTT service providers.
Companies, like Netflix and Amazon prime, are using various AI platforms to revamp the way the content is monetized. The growing adoption of IoT devices is further fueling the data generated. By 2021, mobile video is expected to drive 24% of the Internet video traffic. Recently in 2018, Massive, a specialist UX vendor for the OTT industry, and Kaltura, a video technology provider serving more than 27 million cloud TV users monthly, have collaborated to improve customer loyalty and conversion and reduce churn rates, as well as increase the adoption of cloud TV.
The rising adoption of 5G technology and growing advancement in wireless communication is expected to enhance the market for cloud TV. Moreover, many Telecom vendors are investing in the progress of 5G technology, to strengthen cloud TV experience. For instance, Nokia and AT&T are collaborating to advance 5G technology in the 39 GHz band, by finishing fixed wireless 5G tests with AT&T's Internet TV streaming service, DIRECTV NOW.
Infrastructure as a service (IaaS) and Platform as a Service (PaaS) are the fastest growing segments of the broader cloud market. In the Asia-Pacific region, China is a major contributor to the public cloud, in terms of revenue. Cloud services and IaaS, in particular, are fully embraced by domestic enterprise users. The local IaaS market is the first choice of small and medium enterprises to construct IT resources in the fields of gaming, video, and mobile internet.
Scope of the Report
Cloud TV is a software platform that virtualizes set-top-box functionality, enabling the service providers to bring advanced user interfaces, online video experiences such as YouTube along with social networking, internet browsing, online gaming, video conferences, and interactive web-style advertising to televisions, and connected electronics devices.
Software as a Service (SaaS)
Infrastructure as a Service (IaaS)
Platform as a Service (PaaS)
Entertainment and Media
Middle East & Africa
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Key Market Trends
Entertainment and Media Expected to be Primary Areas of Applications
The integration of high definition streaming and lack of delay in the broadcasting services have spiked the sales for cloud service over the conventional set-top boxes. The advent of 3D content and virtual reality in the recently launched smart televisions has created a completely new opportunity for the cloud TV service providers to seize.
An average human spends an average of 3 hours in a week on gaming realted entertainment activities, which is projected to increase by a significant amount with VR and cloud gaming set to impact the gaming ecosystem. These trends indicate that the integration of the cloud services in the televisions and other smart devices ensures the growth of the market by a huge margin during the forecast period.
Trends, such as video on demand, content streaming, hyper-targeted content and advertising, and direct-to-consumer relationship are increasing the demand for cloud TV platforms in the media and entertainment industry. For instance, Lightbox, a New Zealand subscription video on demand (SVOD) service, offers a selection of television shows over a range of devices by using Qrious analytics expertise. The analytics helps in gaining expertise on customer needs as well as how to improve/engage/retain the same viewers.
Additionally, the rising demand for high definition resolution is also fueling market growth of entertainment and media. Various companies such as Toshiba Corporation, Koninklijke Philips N.V., and others provide cloud TV apps and solutions pre-installed on their smart television sets.
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Asia Pacific has the Highest Growth Potential Owing to the High Populations in These Countries
Developing regions have the highest potential to grow, with increasing penetration of the internet and the number of smart devices set to shape the market significantly during the forecast period. Countries, such as India have a huge population and it has been estimated to accommodate 800 million smart devices by 2020, making it the largest smart devices user in the world. This indicates the potential for the cloud TV market to grow indicating a rapidly evolving market with huge scope for improvement.
In the Asia-Pacific region, China is a major contributor to the public cloud, in terms of revenue. Cloud services and IaaS, in particular, are fully embraced by domestic enterprise users. The local IaaS market is the first choice of small and medium enterprises to construct IT resources in the fields of gaming, video, and mobile internet.
The telecom market is dominated by certain players, with each having the outreach and the potential to cater to millions of users. The recent introduction of Jio services by Reliance has led to a rise in the awareness of 4G services by a huge margin. Educating the audience by explaining the potential of the service provided goes a long way in establishing the trust of the consumer.
The region is witnessing growing adoption of video streaming among consumers are increasingly adopting smart technology. The market is rife with opportunities for products and services in the local APAC market. Due to the potential the region displays, the APAC market is expected to grow to reach a substantial valuation during the forecasted period.
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The cloud tv market is moderately competitive and consists of several market players. The continuously increasing market opportunity, improved mobile internet services and coverage, improving display quality, is expected to attract multiple new vendors into the market. These vendors are innovating and using new techniques and analytics to gain a significant market share and maintain that by using real-time analytics. Such developmensts are expected to aid the development of the cloud TV market. The companies operating in the market are leveraging on strategic collaborative initiatives to increase their market share and increase their profitability.
April 2019 - Brightcove Inc, the leading provider of cloud services for video, announced the completion of the acquisition of the online video platform business of Ooyala, a provider of cloud video technology. The strategic acquisition strengthens Brightcove’s position in the online video industry.
Jun 2018 - Oracle NetSuite introduced embedded artificial intelligence (AI) to its cloud products, such as data integration, API, and mobile. This is expected to automate key tasks of the organization, reduce risks, and accelerate predictive analytics.