The global 4K set top box (STB) market size is expected to reach $3.65bn by 2024, according to a new report by Grand View Research.
According to this research, increasing demand for UHD 4K video content and surging sales of compatible 4K TVs and display devices are expected to positively shape the ultra high definition (UHD) STB market’s growth prospects.
Technological advancements and rising demand for UHD video and sound are anticipated to drive the global 4K STB market over the forecast period. The introduction of advanced Internet Protocol Television (IPTV), and over the top (OTT) streaming technologies are further expected to favourably impact the market.
IPTV UHD set top boxes contributed to over 20% of the market revenue in 2014 and are anticipated to witness significant growth over the next eight years. Hybrid set top box devices are expected to witness a substantial CAGR of over 5% throughout the forecast period. The Asia Pacific 4K STB market accounted for over 25% of the global revenue share in 2014 and is presumed to witness significant growth over the forecast period.
Key industry players include telecom companies, direct broadcast satellite providers, and other on-demand content service providers. Surging demand for interactive content has led major service providers to form strategic alliances with content and software providers enabling seamless interactive content for the users. Moreover, advanced STB devices have increased the storage space to enable personal video recording and caching of data broadcasts.
However, higher prices of 4K video content subscription and STB hardware as compared to high definition (HD) and standard definition (SD) is expected to pose a challenge to market growth over the coming years. Issues such as low penetration of high-speed broadband Internet in the developing economies required for IPTV and OTT service subscriptions are also anticipated to hinder the regional industry growth.
Emma Tommony is a freelance journalist speacialising in all things IPTV, SVOD, VOD and connected entertainment. She currently writes exclusively for IPTV News.