A CAGR of 14% is predicted for the digital TV market. The market value is anticipated to reach up to USD 220 billion during the projected period of 2020–2030, according to the MRFR research. A digital television antenna transmits the digital signal between digital televisions.
The digital TV market is driven by several factors, including rising disposable income, and expanding digital platform content. The fast advancement of technology and digital platforms will be the main drivers of market expansion throughout the projected period. The industry is seeing potential development possibilities due to the growing customer demand for higher image quality content.
The availability of high-quality content from many service providers on a single platform at reasonable pricing is one of the primary industry development factors. Additionally, to meet users’ needs and demands, digital TV service providers now provide a number of value-added services, including bundled packages, internet connectivity, discounted subscription rates, and customizable channel subscriptions. These services allow service providers to generate profits.
Rising penetration of mass content distribution to benefit market growth
Service providers use integrated broadband broadcasting (IBB) systems to broaden their service portfolios and improve market penetration. Broadcast and internet technology can enable effective mass content distribution and individualized service.
Customers may now see more TV apps and have more interactive experiences by accessing entertainment via their smart TVs or set-top boxes, thanks to the Smart TV Alliance and the HbbTV (Hybrid Broadcast Broadband TV) Association. A wide range of services are available on a HbbTV-equipped device thanks to the HbbTV-based portals that smaller cable companies have begun to implement.
As a result of the broadcasters’ realization of the value of UHDTV services, they can now provide channels with better picture quality. The rise in the number of homes with flat panel displays capable of presenting HD fuels the rising demand for UHD services. Additionally, the expenditures made by the digital TV provider in manufacturing facilities and R&D have already been written off, and customers appear to be constrained by the lowering price levels.
However, several limitations will limit the expansion of the digital TV market at a particular rate, such as privacy concerns and the severe lack of adequate infrastructure. The lack of well-established digital infrastructure is one of the main obstacles limiting industry expansion. As a result, the expansion of the digital TV market will stagnate, and it won’t be able to attract new customers. The low level of knowledge regarding digital platforms like pay-TV and OTT might also pose difficulties for the market. However, the expanding markets for electronics and portable digital TV boxes will assist in providing a number of new development prospects. This factor will significantly boost market expansion in the following years.
North America to hold a significant share
OTT platforms and the quick adoption of internet-enabled media are to blame for the regional market’s loss despite a more significant revenue share. The considerable increase in cord-cutting cases is pressuring service providers to change their service offerings to online content distribution to increase their customer base. Further encouraging viewers to migrate to OTT platforms is using cutting-edge technology like artificial intelligence (AI) and machine learning (ML) to evaluate users’ viewing patterns and provide tailored suggestions. Additionally, service providers have stopped using these business practices due to declining profit margins in offering bundled packages over time, which negatively influences the expansion of the sector.
In terms of revenue, the Asia-Pacific area accounted for nearly 25% of all sales in 2020. Due to the region’s customers’ quick acceptance of the online subscription business model, IPTV has been the main growth driver. Additionally, expanding pay TV in rural homes in nations like China, India, and Indonesia has boosted the sector’s total development. In addition, new initiatives by federal organizations, like the Telecom Regulatory Authority of India (TRAI) in India, allow users to tailor their choices and pay for channels in accordance with their needs, which is further enabling the widespread adoption of pay TV services in the nation and thereby promoting regional growth.
Service providers now have more channels to choose from and are covering more live events, including athletic events, on television, giving them a better chance to increase their market share. Additionally, service providers have begun to offer social media applications tailored to individual customers, enabling people in the same geographic area with similar interests to interact and watch live sporting events together.