Market Trends of Smart Television and Set-Top Box Industry
This section covers the major market trends shaping the Smart Television & Set-Top Box Market according to our research experts:
High Levels of Technological Innovations to Drive the Market
- The adoption of artificial intelligence in set-top boxes has been increasing as it helps in enhancing the picture quality of STB devices. In October 2021, SK Broadband announced the launch of AI Sound Max. This set-top box combines the lasted artificial intelligence with the audio technology from the Danish luxury audio company Bang & Olufsen.
- AI technology improves the voice functions for complex applications and helps in improving customer experience. There has been the introduction of new voice technologies to navigate content.
- The Android set-top boxes come with many applications related to gaming, OTT platforms, and music. These heavy applications need a processor, which ensures smooth running, improving viewers' engagement.
- There is a strong demand for an Android TV set-top box, as it offers better picture quality and sound quality, along with access to streaming content. In August 2021, Sumitomo Electric announced that its BS4K*1 set-top box powered by Android TV exceeded a cumulative domestic shipment of one million units in May 2021. According to the company, the sales were influenced by the pandemic.
- In October 2021, the Czech Republic-based media platform provider nangu.TV unveiled a new 4K UHD Android TV Operator Tier set-top box. The company partnered with Orange Slovensko, CommScope, and Viaccess Orca. It recently launched in Slovakia and gave Orange customers a live and on-demand streaming entertainment experience.
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Asia Pacific to Hold Significant Market Share
- The Asia Pacific region is one of the prominent regions for subscription video-on-demand (SVOD) subscribers. According to the data published by Digital TV Research, the Asia-Pacific region is anticipated to have 698 million SVOD subscriptions by 2026, up by almost 39% from 2021 levels, i.e., 502 million. Moreover, countries like China are expected to significantly contribute to SVOD subscriptions, with 354 million subscriptions by 2026. Therefore, the rising SVOD subscriptions and the growing inclination toward large-screen displays are anticipated to propel the market's growth over the forecast period.
- In January 2022, Sony Electronics announced the launch of the BRAVIA XR television series, which includes MASTER Series Z9K 8K and X95K 4K Mini LED models, MASTER Series A90K, MASTER Series A95K, A80K 4K OLED models, and X90K 4K LED model. Powered by Cognitive Processor XR, the unique XR Backlight Master Drive precisely controls with its latest generation Mini LED backlight in the Z9K and X95K series for incredible brightness. These innovations enable the company to deliver the best and most immersive viewing experiences, authentically delivering the creator's true intent. According to one of the company's representatives in the Asia-Pacific region, the company is committed to offering an enhanced viewing experience to the viewers.
- According to the Indian arm of Netflix, India is one of the most promising countries in the world, with more than 200 million potential TV households and still underpenetrated. Smart televisions have become more affordable over the past couple of years and represent the newest TVs sold. According to the company, Indian people love connecting to the internet and streaming their favorite films and series on demand. Also, the company witnessed an ever-growing need among audiences to watch Netflix on a smart TV at home with their family. Therefore, the positive outlook of renowned companies toward the Indian market represents the expanding market growth of smart TVs in the country.
- According to the data released by the Telecom Regulatory Authority of India (TRAI), cable and direct-to-home television service providers lost their market to streaming services during the pandemic as Netflix, Amazon Prime Video, and ALTBalaji reached a significant number of subscribers. The combined user base of cable TV operators and DTH companies declined by 4.1 million through March 2021.
- On similar lines, telecom DTH providers are also partnering with OTT players to offer complete entertainment content. In September 2021, Vodafone Idea announced that the telecom industry is undergoing a digital transformation due to the growing consumption of over-the-top (OTT) platforms, along with IoT acceleration. The company partnered with local OTT platforms such as Voot Select Sun NXT.
- The collaborations between OTT and STB vendors can also be witnessed in the region. In April 2021, multi-system operator (MSO) Siti Networks launched Siti PlayTop Magic, a 4K HDR STB offering Android and linear TV features.
- The increase in the teledensity of rural subscribers can also be witnessed in other parts of the region. According to a report published by India Brand Equity Foundation (IBEF) in July 2021, the teledensity of rural subscribers reached 60.27% in March 2021, an increase of 1.48% from March 2020, showcasing a high growth potential from the rural sector.
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