Global IPTV market to reach $79.38 billion in 2020Tuesday, February 3rd, 2015
IPTV Market is Expected to Reach USD 79.38 Billion in 2020, Globally
According to a new market report published by Transparency Market Research “IPTV Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 – 2020,” the market was valued at USD 24.94 billion in 2013 and is expected to reach USD 79.38 billion by 2020, growing at a CAGR of 18.1% from 2014 to 2020. Western Europe was the largest revenue contributor in 2013, accounting for almost 38% of the global IPTV market revenue. The growth is mainly driven by increasing broadband penetration and decreasing prices of IPTV subscription globally. The IPTV market lately has also witnessed increase in number of IPTV subscribers, mainly fueled by demand for enhanced user viewing experience as delivered by IPTV and development of supporting infrastructure in emerging countries. Asia Pacific is analyzed to be the fastest growing market for IPTV during the forecast period. IPTV market for Asia Pacific excluding Japan (APEJ) is estimated to grow at a CAGR of 21.1% from 2014 to 2020. China, India, South Korea and Indonesia are expected to be the major contributors to the market in the near future.
The global IPTV market is expected to witness hefty growth during the forecast period mainly driven by video-on-demand (VoD) services, interactive services, multi-view on multi-screens offered by telcos along with pure-play IPTV services. The market is poised to grow considerably due to increasing broadband penetration in Asia Pacific, Middle East and Africa, and Latin America, which helps in meeting the primary infrastructure requirements needed to deliver IPTV services.
Explosion of internet content and advancement in mobile devices has ignited a global revolution in terms of how consumers interact with and access online content. Increasing demand for better viewing experience has fueled the adoption of IPTV services worldwide. The proliferation of cloud-based entertainment services such as HBO Go, Xfinity, Hulu, and Amazon is enabling viewers to access “TV. Anywhere” by logging into their online subscriptions through IPTV services. IPTV service providers have observed increase in adoption of the services across corporate and enterprise segments. The hospitality industry adopts IPTV services in order to enhance customer service experience. IPTV enables hotels to deliver the clear and crisp HD resolution, while providing virtually limitless entertainment options at the same time. It also enables hotel to distribute guest information via in-room television screens, hence parlaying a more eco-friendly and efficient communication method. This aids hotels in ensuring high customer loyalty, which in turn increases their business.
China has one of the highest numbers of IPTV subscribers worldwide and is expected to continue to see proliferation in IPTV subscribers during the forecast period. Reduction in the service costs along with fast expanding broadband infrastructure and an ever-expanding middle class income group (population) are propelling the market growth in this region. IPTV services are availed through internet connection; therefore increase in broadband penetration is anticipated to continue contributing to the market growth in the near future. Government laws to promote broadband connection in the emerging countries such as India are anticipated to further fuel the number of IPTV subscribers over the forecast period.
IPTV solutions enable the distribution of broadcast-quality digital TV and video content over IP networks to an unlimited number of end-points such as standard TVs, personal computers, interactive whiteboards, digital signage, digital AV projectors, or any other video display device equipped with internet connectivity. IPTV is attracting noteworthy corporate interest as a tool to communicate with employees, improve training, satisfy compliance requirements, and reduce travel costs. Clubs, stadiums, and entertainment venues aim at offering entertainment services in order to provide an exceptional experience to their corporate guests and fans. IPTV services make them realize this goal. Hospitality sector focuses on the customers’ comfort and personalized services; therefore have started adopting IPTV services.