Smart Television and Set-Top Box Market Size

Smart Television & Set-Top Box Market Analysis

The Global Smart Television Market was valued at USD 246.56 million in 2021 and is expected to register a CAGR of 2.21% over the forecast period (2022 - 2027).

The Global Set-Top Box Market was valued at USD 226.26 million in 2021 and is expected to register a CAGR of -1.25% over the forecast period (2022 - 2027).

• High levels of technological innovations are driving the growth of the market. The development of a wide range of STBs equipped with various features has made the competition fierce among set-top-box companies. Digital video recording is one of the most desired features, as it enables the viewers to watch and record their favorite shows.
• The deployment of OS-Based devices drives the market growth. The government regulations mandating the installation of set-top boxes, deployment of open OS-based devices by STB vendors, and analog switch-off transition in emerging countries are further driving the demand of the STB market.
• For instance, the Government of India has made STBs compulsory through an amendment to the Cable Television Networks (Regulation) Act. Set-top boxes provide a better viewing experience because of digital signals and help in preventing illegal channels from being broadcasted in India.
• The demand for better picture resolution, in line with the increase in the sales of high-definition TVs, is also pushing the market for set-top boxes that deliver HD and UHD content. However, the Consumer Technology Association (CTA) projected that television shipments in the United States would drop by 8% to 43 million units in 2021, according to its latest "Tech Trends to Watch" research.
• Key players that are significantly active in the Smart TV market include LG Electronics, Samsung, Xiaomi, Vu, TCL, Hisense, and Sony. With the presence of various international brands such as Sony, Samsung, LG, Xiaomi, and many more, the Smart TV market is moderately consolidated, with more than 65% of the market share held by a few prominent companies. These companies are making significant efforts in the Smart TV Markets to create the next big thing by engaging in partnerships and making frequent product developments.
• Further, according to Digital TV Europe Industry Survey 2021, about 35% of the respondents suggested that the set-top is a useful element in the TV operator's proposition but is not irreplaceable, while a further 36% take the view that it is only one option the TV operator must reach customers today and is no more valuable than any other. In addition, 10% of the respondents suggested that the box is central to the TV operator's proposition and is here to stay.
• Market incumbents have been adopting robust competitive strategies involving innovation, partner programs, and market expansion, among others. For instance, Technicolor adopts an operator program focusing on integration benefits to leveraging new operators.
• The COVID-19 outbreak led to lockdowns imposed by the government to curb the spread of the virus, which affected the supply chains of various telecom service providers. In September 2021, the Airtel DTH arm announced plans to stop imports of high-definition set-top boxes by the end of 2021 to tackle the COVID-19-induced supply chain disruption and make locally-developed set-top boxes. Tata Sky, Airtel's major competitor, partnered with Technicolor for the domestic production of set-top boxes in India.