According to Technavio, the global set-top box market is expected to post a compounding annual growth rate (CAGR) of more than 3% during 2020-2024.
Vendors in the market are increasing their R&D efforts to introduce voice control features for their set-top boxes to allow customers to change channels and adjust TV and A/V receiver settings using voice commands. Vendors are also introducing products that can be integrated with Google Assistant and Amazon Alexa. For instance, in 2018, TiVo introduced a new range of set-top box models that support Alexa, Amazon's virtual assistant. Therefore, the integration of voice control feature into set-top boxes is expected to have a positive impact on the growth of the market during the forecast period.
The integration of new technologies into set-top boxes is expected to have a positive impact on the market and contribute to its growth over the forecast period.
Consumers are increasingly opting for set-top boxes that are backed with the latest technologies and provide high-quality video streaming along with value-added services. That trend is encouraging vendors to introduce hybrid set-top boxes that allow users to watch live channels through TV subscriptions and stream on-demand videos through OTT apps. For instance, in September 2018, Airtel launched its Android TV-based set-top box, Xtreme Box, in India, which allows customers to access digital content, play games, and browse the Internet, along with other features. Such product launches are expected to boost the growth of the global set-top box market during the forecast period.
"Decreasing prices of dynamic random-access memory (DRAM) chips and the increasing affordability of TVs will further boost market growth during the forecast period," said a senior analyst at Technavio.
The APAC region led the set-top box market in 2019, followed by Europe, North America, South America, and MEA. During the forecast period, the APAC region is expected to register the highest incremental growth due to factors such as the increasing number of households with TVs, decreasing TV subscription charges, and the launch of new set-top boxes with added functionalities.