Market Trends of Set-Top Box Industry
This section covers the major market trends shaping the Set-Top Box Market according to our research experts:
HD Resolution Held the Largest Market Share
- There are 1920 pixels in width & 1080 pixels in height in full HD resolution. A High Definition set-top box can display both high-definition and standard definition channels. In contrast, a Standard Definition set-top box can often only view standard definition channels. Moreover, instead of SD, which has a 4:3 aspect ratio and leaves the two black margins on contemporary large TV displays, HD transmissions have a 16:9 wide aspect ratio.
- According to the Full HD specifications, the horizontal resolution is 1920 pixels, which is narrower than 1/2 of the maximum horizontal field of view and results in a slightly compressed image compared to UHD resolutions. This horizontal resolution is equivalent to "32 degrees" when converted into the horizontal field of view (FOV).
- Since 1080-pixel monitors have inundated the market over the past five years, HD has emerged as the new norm. Due to the rising need for reliable content and the flexibility of connecting HD STBs to monitors and TVs, they are a useful addition to watching experiences. Moreover, due to the advent of other additional platforms, a bigger audience can be reached by conventional STBs. For instance, Vodafone TV introduced Facebook Watch to its STB to accelerate its HD content rollout in Europe in October 2021.
- The majority of STBs continue to offer HD content as their median market product offering, with the higher-end STBs shifting toward 4K and 8K programming. In contrast, the lower-end STBs mainly offer SD. HD media expanded and became a mainstay in the industry due to the development of Blu-ray technology. HD streaming is often available with SD in STB subscriptions but at a higher cost. The market's move from previously utilized VGA cables to HDMI cables, which allowed for the transfer of both audio and video over a single cable, was also facilitated by HD STBs. The main distinction between HD set-top boxes and analogue TVs is the number of channels they can receive.
- According to TRAI, Tata Sky, a company of the Tata Group, recorded the highest share of about 33% of the Indian DTH market during the first half of 2021. During the measured time, the operator was ahead of Airtel, followed by Dish TV and Sun Direct. The remaining DTH operators further solidified their control of the market that year, except for Dish TV, which suffered a fall in its market shares.
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North America is Expected to Hold a Significant Share of the Market
- North America has consistently maintained the lead in adopting the latest technologies. The technological advancements, the growing emphasis on better quality videos, and powerful technological interfaces are the major factors driving the set-top box market in the region. The region's market for set-top boxes (STBs) has reached a significant saturation stage. However, the regional providers are constantly taking initiatives to add innovative features to keep up with the overall growth of the market as well as the changing requirements of the customer.
- Players like MobiTV have started offering set-top box-free IPTV services due to the decline of the pay-TV offerings. Vendors in North America (a somewhat mature industry) are continually attempting to add features to their STBs, such as gateway capabilities, security, and HD functionality, due to the market saturation of pay-TV users and fierce competition. In August 2021, Evoca chose CommScope, a global provider of home network solutions, to provide its subscribers with the newest set-top solutions outfitted with Android TV and dual multimode ATSC 3.0 and ATSC 1.0 tuners.
- The increasing penetration of OTT has led to the increased penetration of smart televisions across the region. Therefore, various players in the market are launching new products to cater to the growing demand. For instance, in September 2021, Amazon announced the sale of its customized line-up of 4K smart televisions. These TVs will be made in collaboration with Pioneer and Toshiba and feature built-in Alexa and Fire TV software. These TVs were initially launched in small 43-inch and 50-inch sizes and are planned to be launched in 55-, 66-, and 75-inch offerings by mid-2022. These TVs are slated to be sold exclusively in the North American region. Hence, with the rise in the sales of smart televisions, the demand for Set-Top boxes is also expected to increase in the region simultaneously.
- Furthermore, in August 2021, TCL announced the launch of new five and 6-series TVs. These TVs were made available for pre-sale in the United States, followed by a launch in Canada. TCL Series 5 and 6 televisions with hands-free voice control leverage Google Assistant to search over 700,000 movies and TV episodes, answer questions, and manage smart home devices, among other tasks.
- In January 2022, Roku, Inc. announced partnering with Sharp to bring Sharp Roku TV models to US customers. According to the partnership, Sharp Roku TV models will come integrated with Roku OS, providing the customers with a customizable home screen, compatibility with the three major voice ecosystems, and access to many channels, including over 200 live TV channels.
- Around 27% of US cable TV subscribers want to cancel their subscriptions by the end of 2021 due to the decline in cable TV subscriptions, according to the results of the second annual "Future of TV" consumer study. The Trade Desk surveyed between December 4 and 8, 2020, using a sample size of 2,105 persons in the US. Thus, this will enhance the overall demand for Set-Top boxes in the region.
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