Android Set-Top Box Market Analysis Report By Resolution, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global android set-top box (STB) market size was worth USD 172.5 million in 2018 and is projected to grow at the CAGR of over 19.5% during the forecasted period, 2019 to 2025. Changing consumer's preferences for high-quality and hybrid video content is mainly contributing to market growth. In addition, increasing digitalization especially in emerging economies is boosting the demand for set-top boxes (STBs). Moreover, the growing adoption of IPTV and OTT platforms along with internet penetrations is also expected to boost market growth in the next few years. 

Android-enabled set-top box provides enhanced user experience, diverse content, and wider access to various applications. Android STB is highly efficient than conventional STB. These STBs are in-built with features such as video-conference, voice recognition, and apps ecosystem. Moreover, these STBs offer connectivity options through USB ports, Wi-Fi, Ethernet, Bluetooth, and HDMI outputs.

In addition, the android based STB is gaining in popularity owing to its benefits. Key companies in the industry are continuously focused on developing set-top boxes due to their low development cost and reduced time to market. In addition, companies in the market are focusing on partnering with OEMs to expand their reach across the globe. 

Furthermore, in the past few years, OTT video streaming platforms have been gaining traction among consumers. Increasing internet penetration with high-speed data transmission is further expected to surge the growth of video services. Various factors such as flexible business model, low-cost, and easy accessibility features are projected to positively impact android set-top box market growth. 

The rapid growth of broadband connectivity along with advanced new technologies including 4G LTE, 5G services across the developing region is anticipated to bolster the market growth. Additionally, the advent of satellite communication technologies is improving the utility of digital services. It is found that the users are willing to spend more time watching on digital or online platforms than traditional media. 

Resolution Insights

Depending on resolution, the market is fragmented into 4K & Above, and HD & Full HD segments. In 2018, the HD & Full HD type segment led the market with the highest share and is anticipated to continue its dominance during the forecasted period. HD STBs provide high-quality videos at affordable prices. Additionally, regular SD boxes are now getting replaced by full HD set-top boxes. 

4K & above type segment is projected to register the fastest CAGR during the forecast period. Increasing demand for ultra-high resolution video is anticipated to boost the demand for 4K and above type set-top boxes. The growing inclination for large TV screens and home entertainment is projected to support market growth. Key players are investing in advanced technology such as premium 4K technology. 

Distribution Channel Insights

Android STB market is segmented into brick & mortar and online channels based on distribution channels. In 2018, brick & mortar channels held the largest market share in the overall market. The major factor proliferating this segment growth is physical verification before buying a product.  It is found that a large number of consumers first research about the product on online or digital platforms and then buy from the store.

The online channel segment is projected to grow at a substantial rate during the forecast period. E-commerce or online platforms offer a large variety of products and multiple discount coupons to attract consumers. Major players in the industry market their products through online platforms to extend their distribution network across the world. 

Regional Insights

In terms of volume, Asia Pacific led the market with the highest share in 2018. Increasing demand for smart TVs and rising internet penetration are boosting regional growth. The Chinese market has constituted a majority share in the region owing to the presence of a large number of STB manufacturers in the country.

North America is estimated to grow at a CAGR of more than 22.0% from 2019 to 2025. Changing consumer preference and rising adoption for UHD video content along with growing demand for OTT platforms are driving the market growth. In North America, the United States (U.S.) is projected to dominate the market due to increasing demand for IPTV/OTT platforms, especially among young adults.

Impact of COVID-19

COVID-19 pandemic has negatively impacted the market. During the first and second quarters of 2020, the production of electronic components was disrupted due to lockdown. China is the world’s largest producer of set-top boxes. However, from February to April 2020 most of the product manufacturing firms have been hit by the shutdown. In addition, in India, the companies such as Airtel and Tata Sky have postponed their new product launches amid pandemics.

International trades have been impacted by supply chain disruption caused due to lockdown. Product innovations such as the installation of third-party applications on the android set-top boxes are expected to gain momentum over the forecast period.

Android Set-Top Box Market Share Insights

The market is moderately competitive in nature owing to the presence of various international and local players. Increasing internet penetration and digital media are projected to offer ample growth opportunities for market players.

Companies in the industry invest in R&D activities, strategic collaborations/partnerships to develop new products. For instance, in 2019, Irdeto has partnered with Skyworth Digital, and Amlogic to introduce cost-effective android-based STB.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global android set-top box market report on the basis of resolution, distribution channel, and region:

• Resolution Outlook (Volume, Thousand Units; Revenue, USD Million, 2015 - 2025)
    • HD & Full HD
    • 4K & Above

• Distribution Channel Outlook (Volume, Thousand Units; Revenue, USD Million, 2015 - 2025)
    • Online
    • Brick & Mortar

• Regional Outlook (Volume, Thousand Units; Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • Germany
        • U.K.
    • The Asia Pacific
        • China
        • Japan
    • Latin America
    • Middle East & Africa (MEA)