Technology

STB market set to grow globally with HD channels & falling prices of smart TVs

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NEW DELHI: Even as India has embarked on a Make in India programme, an international research says that availability of High Definition (HD) channels and falling prices of smart TVs are expected to surge set top box (STB) market growth between 2015 and 2022.

Cooperation between STB operators and the manufacturers along with efficient customer support is expected to positively contribute towards market growth, according to Grand View Research.

The Asia Pacific STB market is expected to witness rapid growth due to growing consumer adoption and favorable government mandate in the region.

Regulations mandating the digitization of traditional cable television and the subsequent migration from analog to digital TV have led to an increased demand for STBs over the past few years. Technological advancements and better quality of signal transmission may further supplement STB market growth over the next seven to eight years.

The improvements in technology and better quality of signal transmission in digital television are expected to spur market growth over the forecast period. Moreover, features such as recording, live streaming through internet, and remote viewing through smartphones and tablets are further expected to drive STB market growth.

However, high costs of such STBs and associated costs of pay channels could challenge market growth. Cable service providers who are unwilling to participate in rolling out of STB due to major capital expenditure amidst business uncertainties may also challenge market growth. Factors such as operator upgrades to high definition technologies, attractive development policies, plans, growth interest in over-the-top hybrid set top box designs, and rising global penetration of pay-TV are expected to provide growth opportunities for the set top box market over the forecast period.

Types of set top box include Internet Protocol Television (IPTV), satellite Direct-To-Home (DTH), cable, and Digital Terrestrial Transmission (DTT). The IPTV segment is expected to account for a major share in the market.

Strategic acquisitions and mergers are expected to play a key role in expanding market share. For instance, in April 2015, ArrisGroup Inc., a broadband media technology, and Pace PLC, a UK-based technology provider for the Pay-TV and Broadband industries, announced that Arris would acquire Pace for a cash consideration of $2.1 billion. The acquisition is expected to enhance the company’s product portfolio and its presence in the satellite segment, the California-based research group said.

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