Set Top Box Market Trends

Set Top Box Market Driver

Growing Adoption of Smart TVS and Smart Set Top Box

• The demand for higher-resolution pictures and improved-quality sound has increased on account of significant technological advancements in the OTT industry. OTT services allow users to access HD-quality video content on their HD-ready TV sets and portable devices. With the emergence of innovative products, such as OLED TVs, 8K UHD TVs, and 3D smart interactive TVs, the global OTT devices and services market is expected to present significant opportunities for the market players over the forecast period. In March 2022, Technicolor Connected Home partnered with Bouygues Telecom, one of France’s prominent network service providers with over 26.2 million fixed and mobile subscribers, to develop and deploy a futureproof and premium Android 4K ultra-high-definition (UHD) STB integrated with the best-in-class Wi-Fi that delivers video experiences to consumers throughout the market.

Evolving User Preferences

• Set-top boxes are witnessing a profound transformation in response to the evolving preferences of the masses. Modern viewers are increasingly seeking a more personalized and immersive entertainment experience. The demand for high-definition (HD) and ultra-high-definition (4K) content, along with high dynamic range (HDR) support, is driving the need for technologically advanced set-top boxes capable of delivering superior video quality. Individuals want to enjoy their favorite shows and movies in the highest possible resolution, and this is encouraging manufacturers to develop more capable hardware. Furthermore, the popularity of streaming services is rising, leading to a convergence of traditional cable or satellite television (TV) and over-the-top (OTT) platforms.

Set Top Box Market Restraints

Increasing Production Cost

• Over the past few years, the growth of the market has been significantly constrained by the rise in production costs. Additionally, this causes the price of different television sets in many other parts of the world. Television panels are imported by businesses in an open-cell state and require additional assembly before being dispatched for sale. The primary cause of a price of threefold for open cells, according to Super Plastronics Pvt., is their lack of availability in the market. As a result, one of the critical reasons for the market's sluggish growth is the increase in TV production costs brought on by the rise in panel prices.

Regulatory Changes and Content Security

• Regulatory changes, particularly in the realm of content security and intellectual property protection, are positively influencing the market. Governments are actively implementing stringent measures to combat piracy and unauthorized distribution of copyrighted content. Set-top boxes are required to adhere to these regulations by implementing robust encryption techniques and content protection mechanisms. These measures ensure that only authorized users can access and enjoy copyrighted material, bolstering trust among content creators and distributors. Compliance with regional and international content standards, such as high-bandwidth digital content protection (HDCP) and conditional access systems (CAS), is essential for set-top box manufacturers.