New research says the 4K/UHD set-top box market could be a $3.65 billion global market by 2024, driven by increased demand for 4K video content, strong sales of compatible 4K TVs and display devices.
A new report from Grand View Research forecasts that hybrid STB devices will see a CAGR of more than 5% throughout the forecast period, popular with users as they give them access to multiple TV delivery methods including cable, terrestrial, satellite and the Internet.
The North America UHD set top box is expected to grow at a CAGR of more than 3% from 2016 to 2024.
The APAC region, meanwhile, already accounts for more than 25% of the global revenue share (as of 2014), and is expected to see continued significant growth over the forecast period.
China and India are expected to incorporate considerable opportunities for regional industry growth, due to the strong presence of UHD STB manufacturers. OTT-based streaming devices are becoming the STB of choice for satellite TV providers in many emerging markets, such as China and India, where open-source content is abundant.
The question, of course, is will there be adequate content to continue driving growth.
While content providers have begun offering 4K content on a limited scale, primarily through SVOD services and from several satellite pay-TV providers, broadscale 4K/UHD content production is still a ways off.
In fact, Netflix – and some U.S. pay-TV operators – see high dynamic range (HDR) programming as the next big area for growth. HDR provides a more color-saturated picture and uses significantly less bandwidth than does 4K. And, its apparent even on smaller TV screens, as opposed to 4K, which is best on screen over 65-inches.
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