Email
Print
South America Set Top Box Market - Forecast(2024 - 2030)
South America Set Top box Market Overview
The South America Set Top box Market is estimated to surpass its market size of $3.7 billion by 2027, growing at an estimated CAGR of more than 5.8% during the forecast period 2022 to 2027. One of the major factors driving the growth of the set-top box market is the proliferation of internet services and broadband, coupled with on-demand video content & HD channels are expected to support the market growth during the forecast period. This is expected to drive demand for Internet Protocol Television (IP TV), Integrated Receiver Decoders and Optical Network based solutions. Also, the increasing growth of the end-use industry with rising investments and developments in the region is one of the reasons behind the upliftment of the set top box market; owing to the increase in need-and-demand for a set-top box. For instance, according to the International Trade Administration (ITA), the Peru government launched a National Infrastructure Plan (PNIC), highlighting a US$110 billion need over the next 20 years to bridge Peru’s long-term infrastructure gap In 2019. This gap distributed among various sectors and telecommunications would hold around 6% of the total investment. Also, in the PNIC, the Peru government prioritized 52 infrastructure projects, two-thirds of which are in the transportation and communications sector with an investment of US$28.5 billion and completion by 2025. Thus, the rise in the telecom sector would positively impact the growth of the set-top box market with the growing communication sector during the forecast period. Rising OTT content streaming on electronic devices such as laptops, tablets, smartphones and other display devices is adversely affecting set-top box demand.
Report Coverage
The “South
America Set Top box Market Report – Forecast (2022-2027)” by IndustryARC, covers an
in-depth analysis of the following segments in the South America Set Top box
Industry.
By Type: Cable Box STB, Satellite STB,
Digital Terrestrial Television (DTT) STB, Internet Protocol TV (IP) STB,
Over-The-Top (OTT) STB.
By Content Quality: SD, HD & Full HD, Ultra
HD, others.
By Service Type: PayTV, Free-to-Air.
By Distribution: Online, Offline.
By Technology: DVB-C, DVB-S, DVB-T, Hybrid,
MPEG-2, MPEG-4, ANDROID, USB Storage, others.
By End-Use Industry: Commercial, (Hotels & Restaurants,
Retail Stores & Shopping-Malls, Media & Entertainment, Healthcare, Education,
Others), Government And Public Sector, Residential.
By Geography: Brazil, Argentina, Chile,
Colombia, Peru, Ecuador, Uruguay and Others.
Key Takeaways
- Most South American countries are not much aware of e-commerce platforms to purchase products through the online platform. The inculcation of the people is also another major factor responsible for offline sales channels.
- Robust demand for valuable and favorite contents streaming over the pay TV is boosting demand for pay TV services in the South America set top box industry. Also, rising government investments in the housing programs would increase the Pay TV usage in houses, which in turn drives the market growth in the South American region. Additionally, the increasing launches of advanced set top boxes for Pay TV, is driving the market growth during the forecast period.
- The usage of DVB-S in both Single channel per carrier and Multiple Channel Per Carrier (MCPC) modes for direct-broadcast satellite services and for broadcast network feeds is driving the market. Also, the rise in launches of South Americas satellite television is driving the DVB-S technology growth. For instance, in 2022, Hispasat, the Spanish satellite solutions provider, is partnering with NAGRA, an independent content solutions provider, to develop a wholesale OTT (over-the-top) television solution, to enable Pay TV operators, an internet service provider in South America. Thus, the new launch in satellite television is surging the demand for DVB-S technology and also in turn driving the growth of the South America set top box market.
South America Set Top box Market, By Geography, 2021 (%)
For More Details on This Report - Request for Sample
South America Set Top Box Market Segment Analysis - by Industry Vertical
South America Set Top box Market Segment Analysis - by Type
South America Set Top box Market Segment Analysis - by Geography
South America Set Top box Market Drivers
Government & Private sector initiatives to accelerate the digitalization of TV services
TV is experiencing a
fundamental shift from analog to digital broadcasting. TV display devices are becoming digital
in all aspects from its infrastructure and its content distribution models to
its advertising and audience measurement models. Competition is rapidly growing
not only within the broadcast, cable, and satellite markets but also with the
addition of on-demand internet television, sling box, and mobile television.
The government and private sectors are taking initiatives for the development
of infrastructure, and technology which helps in the digitalization of TV display deivce services. For instance, the Government of Brazil is working toward the 5G
spectrum in the country. Brazil’s 5G spectrum auction was held in October 2021
and raised approximately US$ 8.5 billion. Deployment of 5G in Brazil could have
a US$ 1.2 trillion economic impact and an increase in productivity of US$3
trillion by 2035. 5G spectrum winners will be expected to meet various buildout
obligations, including providing coverage to 26 capital cities and the federal
district by July 2022; coverage to all municipalities with >30,000
inhabitants by 2029; 4G coverage to all towns with >600 inhabitants by 2028;
deploying optical fiber network backbone or backhaul networks to municipalities
with >20,000 inhabitants by 2025 and to municipalities with <20,000
inhabitants by 2026; deploying optical fiber networks covering federal
highways, and deploy a private 5G secure network for exclusive use by the
federal government. This will eventually help in the acceleration of TV
services in the country, as most of the TV and the set-top box has the Wi-Fi
connectivity option to view contents and also helps in live TV reporting.
Emergence of Industrial robots are set to drive the market growth forward
The income and expenditure in South America are set to increase significantly over the coming years. The income gap between rural and urban households is expected to shrink due to increasing flow of foreign direct investment for the development of rural section of the countries. For instance, according to World Investment Report 2021, FDI flow in South America is around US$52 billion in 2020, with flows to Brazil and Peru reaching their lowest level in two decades. Thus, rise in FDI flow will help to boost the economy of the country and in turn increase the income of the people in the country. The rise in consumer spending will showcase the increase in income of the individual in the region. Also, the growth in income of the income will eventually rise the strengthens the individual in the society and the region which will help to increase the consumer spending over the digital products. Thus, rise in consumer spending will increase the need and demand for electronic products like TV, in turn will drives the market growth of the South America set top box market during the forecast period.
South America Set Top box Market Challenges
Rising OTT content streaming on electronic devices, such as laptops, tablets, and smartphones, is adversely affecting set-top box industry outlook
OTT streaming is premium content and a superior experience available over OTT platforms like Netflix and Hulu, with the user not needing cable in order to watch. To stream OTT, an individual only needs a high-speed internet connection and a connected device that supports the apps or browsers. The easy accessibility of OTT content is one of many reasons, it’s so popular. There are many ways to access OTT platforms, on computer, phone, tablet, smart TV or gaming console; but one needs a subscription to the OTT platform. The growing digital smart phone users will eventually affect the market, as there are various apps available for free to watch the contents available on TV and can also view premium content on the OTT platform by taking subscription at a very low cost. For instance, according to GSM Association, the mobile technologies and services generated a 7.1% GDP in Latin America with a value of around $340 billion in 2020. Also, 73% of the population will subscribe to mobile services by the end of 2025. Also, the smartphone connections are around 500 million by the end of 2021 in Latin America with an adoption rate of 74%. Almost 100 million additional smartphone connections are expected in the next four years in the region, taking an adoption rate of above 80%. This will spur mobile internet adoption, enabling more people to access digital services for the first time. Furthermore, the economic contribution of the Latin American mobile ecosystem will grow by more than $30 billion by 2025, as the countries in the region increasingly benefit from the improvements in productivity and efficiency brought about by the increased take-up of mobile services. Thus, rise in the smart phone users in the region will help increase digitalization in the country, but it is adversely affecting the set top box industry as most of the TV contents is available free on various apps available over smart phone and browser. The premium contents is also available at very affordable cost. This eventually affects negatively over the set top box industry outlook.
South America Set Top Box Industry Outlook
Product launches,
acquisitions and R&D activities are key strategies adopted by players in
the Set Top Box Industry. The top 10 South America Set Top box companies include:
- America Movil (Claro)
- Technicolor
- ARRIS International
- Cisco
- DirecTV
- Cablevision
- HUMAX
- Samsung Electronics
- Nagravision
- Movistar
Recent Developments
- In
July 2021, Technicolor announced its agreement with SKY Brazil for the
deployment of SKY Connect, a next generation set-top box (STB) that
integrates Google Assistant far-field voice technology that allows
subscribers in Brazil to navigate entertainment content on their TVs.
- In
May 2020, EchoStar announced that the company signed an agreement with
DISH Network Corporation to transfer its EchoStar Satellite Services
business that manages and provides broadcast satellite services primarily
to DISH and its subsidiaries.
- In April 2020, CommScope announced the completion of ARRIS acquisition, enabling CommScope to drive profitable growth in new markets and shape the future of wired and wireless communications.
Relevant Report Titles:
Set Top
Box Market - Forecast(2022 - 2027)
Report Code: ESR 0130
Smart TV Market - Forecast(2022 - 2027)
Report Code: ESR 0284
4K Content Market - Forecast(2022 - 2027)
Report Code: ITR 0350
For more Electronics Market reports, please click here