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IPTV market Overview
The global internet protocol television (IPTV) market was valued at $43,254.0 million in 2017 and it is expected to progress at a CAGR of 14.7% during 2018–2023. The rising demand for video on-demand (VoD) services and increasing use of the internet and advent of mobile content delivery networks (CDN) are the two key factors supporting the growth of the market across the globe.
Based on offering, the IPTV market has been categorized into bundled and standalone. Of these, bundled IPTV packages held the larger share in the market in 2017. This is attributed to the increasing acceptance of the internet and time-shifted programs and a rising number of people using IPTV services in conjunction with VoD and internet services, such as voice over IP (VoIP) and web access.
APAC IPTV MARKET, BY OFFERING, $M (2013 - 2023)
Based on end user, the IPTV market has been bifurcated into residential and enterprises, of which the residential category held the larger market share in 2017. This can be attributed to the fact that users watch programs and shows of their interest at homes in their leisure time. However, the enterprises category is expected to witness faster growth during the forecast period. As IPTV is better able to distribute live and pre-recorded videos within an organization without any need for expensive cabling or satellite networks, companies are increasingly adopting it for efficient employee communication.
On the basis of device, the market has been categorized into smartphones and tablets, smart TVs, and PCs. Among these, the smartphones and tablets category held the largest share in the IPTV market in 2017. During the forecast period, the market for smart TVs is expected to witness the fastest growth, owing to the surging use of these TVs in households, as they offer smart features, in addition to internet connectivity, thereby enhancing the TV watching experience.
Geographically, the market has been classified into North America, Europe, Asia-Pacific (APAC), and Latin America and Middle East and Africa (LAMEA). Among these, Europe held the largest share in the IPTV market in 2017. Europe has been the largest market for IPTV for around ten years, owing to the highest number of subscriptions in the region and early introduction and acceptance of the technology by the populace here.
IPTV Market Dynamics
The rising demand for VoD is propelling the growth of the IPTV market across the globe. VoD refers to the on-demand consumption of videos through digital platforms, such as interactive TVs, and IPTVs, which enables users to download or stream content from traditional TV or online sources. Additionally, VoD allows users to select programs of their choice and watch them as per their convenience. This is resulting in the growing preference for VoD, which is one of the primary factors supporting the growth of the IPTV market.
With the increasing demand for VoD, content network providers are realizing the need for advanced network development. Thus, IPTV is being focused upon by multi-media, telecommunication, and network research players. The inclusion of additional services by IPTV providers, such as interactive services along with pure-play IPTV services and multi-screen services, have added to the revenue and fortified the market growth prospects for the long run.
The lack of infrastructure is primarily restraining the growth of the IPTV market. Operators and providers of IPTV are required to make regular upgradations in networks. The IPTV market, especially in underdeveloped regions, faces growth restraints due to a lack of infrastructure for the proper upgradation of networks and uninterrupted provision of IPTV services at the offered prices. For the proper functioning of IPTVs, the minimum bandwidth of high-speed internet connectivity required is around 10 Mbps, which is not available everywhere across the globe. This can be viewed as a major challenge to the growth of the IPTV market. The lack of effective server locations and their accountability are expected to hamper the growth of the market in the coming years. Thus, due to the lack of proper network infrastructure, IPTV service providers find it difficult to penetrate the market in certain parts of the world.
IPTV Market Competitive Landscape
The global IPTV market is highly competitive in nature with the increasing number of market players. Service providers are offering customized services as per customer requirements in order to increase their sales. Moreover, major market players are also focusing on mergers & acquisitions, partnerships, and product launches to gain a larger share. For instance, in March 2018, Telefonica Business Solutions and Huawei entered into a partnership for the development of a network service platform and cloud VPN for enterprises. The partnership was aimed at delivering a simplified private network between different premises of a business, combined with safe navigation, remote access for teleworkers, and web portals for customers. It is focused on small and medium enterprises (SMEs) across Latin America and Europe.
Further, in January 2018, Verizon Communications Inc. — a major IPTV market player— acquired Niddel Corp. to expand its portfolio of managed security detection and response services for its enterprise customers. Verizon will use Niddel Corp.’s machine learning technology to improve its detection and response capabilities by integrating the technology with its set of managed security services.
Some of the major players operating in the IPTV market are AT&T Inc., Verizon Communications Inc., Orange SA, Deutsche Telekom, Telefonica S.A., SK Telecom, MatrixStream Technologies, Inc., Necro IPTV, Huawei Technologies Co. Ltd., and Foxtel Management Pty Limited.
Key Questions Addressed/Answered in the Report