Market Trends of Internet Protocol Television (IPTV) Industry
Hardware segment to acquire major market share
- The growing economies across the world are increasing the disposable income of the population in those countries, which is improving people's lifestyles, especially in developing countries. As a result of these economic changes, internet penetration has drastically improved across the globe.
- These factors have led to increased demand from television service consumers for better user experiences regarding both quality and on-the-go viewing options. Cisco predicted that globally, Internet-video-to-TV traffic would account for 18% of consumer Internet video traffic by 2022, down from 25% in 2017. The rise of live streaming also led to increased Internet usage, making Internet penetration a vital factor in this trend.
- As of the end of July 2022, the Internet penetration rate reached 63%. North Europe has the highest internet penetration rate, with 98% of the population having Internet access. In contrast, the Asia-Pacific region has the highest number of Internet users, followed by North America.
- With the availability of cheap internet data, consumers are demanding high-quality television experiences, driving the growth of the hardware in the internet protocol television market worldwide.
Asia-Pacific Expected to Grow Significantly
- Over-the-top and Internet-protocol-television (IPTV) are gaining traction driven by increasing broadband penetration and changing content consumption behaviors in the region. The effect can be significantly observed in Asian countries like India and China, representing 7% and 2.8% GDP growth rates in FY 2022. Further, rapid urbanization in India and China are the major countries in the region and play a significant role in adopting IPTV in households.
- Rising investment in content has led to the creation of new content offering which is beyond Hollywood. Increasingly, India is becoming one of the content hubs, with a wealth of material being created for consumption locally and worldwide. Also, the growth of smartphone users in the region since 2010 has fuelled the demand for IPTV services in mobile devices. The number of smartphone users in its region is half that of global smartphone users, which has crossed the mark of 6 billion in the year 2022.
- Moreover, Indian government initiatives towards digital transformation, such as digitization of cable TV and Direct-to-Home (DTH) services, are also favoring the adoption of IPTV in the country. The advent of network service providers has changed the IPTV scenario in India, with the company providing free IPTV live subscriptions to its customers. With other companies following suit, the demand for mobile-based IPTV services is expected to increase in the region.