Android STB and TV Market - Size, Share, Industry Trends, and Forecasts (2024 - 2031)

By Type:

Based on the type, the market is bifurcated into Android STB and Android TV.

Trends in the type:

• Android STBs and TVs are increasingly being designed to support gaming, leveraging the growing popularity of casual and cloud gaming .

The Android STB accounted for the largest revenue of the total Android STB and TV market share in 2023.

• The Android Set Top Box (STB) transforms standard TVs into smart TVs, providing access to a vast array of apps, games, and digital content from the Google Play Store, which led to increased adoption.
• Additionally, Android STBs are typically more affordable than smart TVs, making them an appealing choice for consumers seeking smart TV features without the need to buy a new TV.
• Also, according to the market analysis, the user-friendly interface of Android STBs, regular updates with the latest features and security enhancements, and access to a wide range of content, including popular streaming services and games, has contributed to their popularity.
• In November 2022, SDMC, NAGRA, and Amlogic collaborated to launch an ultra-secure Android TV solution for pay-TV operators, featuring NAGRA's content protection technology. The solution is based on a 4K IPTV set-top box powered by Amlogic's S905C2 SoC and includes the integrated NAGRA Connect security client. This allows operators to quickly deploy Android TV-based services, offer innovative TV experiences to subscribers, and secure their revenue and business models.
• Thus, the ability to transform traditional TV to Android TV with the help of Android STB is driving the Android STB segment trends.

The Android TV is anticipated to register the fastest CAGR growth during the forecast period.

• There is a rising global demand for over-the-top (OTT) platforms and content that is locally developed and distributed.
• Additionally, there is a significant advancement in the telecommunication industry due to the increasing deployment of 5G, 4G, and LTE networks.
• The growing consumer need for better-integrated content experiences is raising Android TV's contribution to the market.
• In April 2021, Sony launched BRAVIA 32W830, a first-of-its-kind 80 cm (32) Smart Android TV with superior picture quality and immersive sound. This innovative TV comes with over 5000 apps, built-in Chromecast, and advanced voice controls, offering an instant and seamless entertainment experience. It enables users to cast their favorite videos, games, and apps from their mobile devices directly to the TV in high quality. The built-in Google Assistant ensures quick access to entertainment, allowing users to control the TV using voice commands to find movies, stream apps, play music, and much more.
• Therefore, the advancement in technology such as various in-build features provided by Android TV is anticipated to boost the market during the forecast period.

By Technology:

Based on the technology, the market is segmented into satellite/DTH, Internet Protocol Television (IPTV), and Cable.

Trends in operating systems:

• Manufacturers are increasingly deploying hybrid STBs that support multiple delivery methods such as DVB (Digital Video Broadcasting) STB and IPTV STB on the same platform.
• To enhance the quality and reduce bandwidth usage, there is an increasing adoption of advanced video compression technology such as HEVC and AV1.

The IPTV Segment accounted for the largest revenue share of 51.49% in 2023 and is anticipated to register the fastest CAGR growth during the forecast period.

• The IPTV segment dominance is due to a shift in consumer behavior towards internet-based media content, increased internet and broadband penetration, and a preference for HD channels and on-demand video services.
• The integration of advanced technologies such as Bluetooth Low Energy (BLE), voice-enabled remote, and Full HD and 4K/8K resolution support is increasing the need for the latest IPTV models.
• Additionally, the high functionality of IPTV, including the ability to distribute pre-recorded or live shows through pre-existing networks, and the growing adoption of IPTV services, further boosted its market value.
• In January 2023, RailTel ,a Mini Ratna PSU under the Ministry of Railways, launched IPTV services as a value-added service for its retail broadband service, RailWire. The service is in partnership with City Online Media Private Ltd., a leading IPTV service provider in India. The service, branded as "ULKA TV", offers IPTV content on mobile and Smart TV via the "ULKA Mini" and "ULKA LITE" apps respectively. The ULKA TV Set Top Box features intelligent features and the latest 4K technology with High Efficiency Video Coding (HEVC) for top-quality video. This initiative aims to transform television households into internet households, opening up possibilities for smart home services.
• Thus, the integration of advanced technologies such as BLE and high-resolution support in the IPTV segment is driving the market.

By Resolution:

Based on the resolution, the market is segregated into HD, Full HD, 4K, and others .

Trends in the resolution:

• The need for higher resolution content such as 4K and 8K content is rapidly increasing. Consumers are seeking better picture quality and more immersive viewing experiences.
• There is a significant drift towards supporting advanced video technologies including high dynamic range (HDR) and Dolby Vision in Android STBs.

The full HD accounted for the largest revenue share in the year 2023.

• The Full HD segment has superior quality and detailed images offered by Full HD TVs, making them ideal for various uses.
• Full HD TVs, with a resolution of 1920 X 1080 pixels, provide better video quality and crispness than original HDTV technology.
• They are widely available in the market, especially in more affordable variants with smaller screens.
• Additionally, television shows are typically broadcast in Full HD, and there is increased consumer need due to access to a wider variety of channels compared to 4K.
• In July 2021, Researchers at Sagemcom launched a new IP/DVB-T2 Ultra HD Set-top Box for TIM, powered by Broadcom's 24k DMIPS quad-core SoC, the BCM72180, with embedded Wi-Fi 6 and AV1 decoding support. The device provides access to entertainment services, including TIMVISION, TIMMUSIC, TIMGAMES, Dazn, and popular platforms such as Netflix, Amazon Prime Video, Disney+, YouTube, and more.
• Thus, the FHD segment due to its wide availability is driving the market trends.

The 4K resolution is anticipated to register the fastest CAGR growth during the forecast period.

• The 4K resolution segment has superior image quality offered by 4K, or Ultra High Definition, which is four times that of Full HD.
• The increasing availability of 4K content from broadcasters and streaming services, coupled with the decreasing prices of 4K TVs, is making 4K STBs and TVs a popular choice.
• Additionally, market analysis shows that consumers are future-proofing their equipment as 4K becomes the standard for new content.
• In February 2024, ZTE Corporation unveiled the B810T2-A10, a next-generation 4K UHD single-mode STB. This new STB is engineered to deliver crisp and fluid TV visuals to users, while also aiding operators in swiftly enhancing services and boosting user engagement.
• Therefore, the 4K segment due to its immersive viewing experience is anticipated to boost the market during the forecast period.

By Sales Channel:

Based on the sales channel, the market is bifurcated into online and offline.

Trends in the sales channel:

• The STB service providers are adopting the omnichannel approach by catering to customers in both offline and online platforms to compete in the low entry barrier state of the market.

The offline segment accounted for the largest revenue share in 2023.

• The offline segment allows customers to physically inspect products. It offers immediate purchases, personalized customer service, easy returns, and other benefits.
• There are many distributors and STB providers which give better offers and benefits at a very cheap rate and in case of any problems these service providers are easily available to resolve the issue.
• Thus, the analysis concludes that the offline segment due to its available options, customer service, and others is driving the Android STB and TV market opportunities.

The online segment is anticipated to register the fastest CAGR growth during the forecast period.

• Factors such as changing consumer preferences, more consumers researching products online before purchasing, and the adoption of e-commerce are boosting the online sales channel.
• In July 2024, ZTE and Telkomsel marked a significant milestone in-home terminal device distribution. They celebrated the successful deployment of two million Set-Top Boxes (STBs) powered by Android TV and one million Customer Premises Equipment (CPE) internet modem devices at IndiHome users in Indonesia.
• Thus, the changing consumer behavior and technological advancements in the product are anticipated to drive the need for Android STB and the TV market.

By End User:

Based on the type, the market is bifurcated into residential and commercial.

Trends in the End User:

• There is a strong preference for Android STB and TVs in homes due to their capability to support streaming services such as Netflix, Amazon Prime, and others.
• The increasing integration of Android STB with Smart Home devices due to the emergence of IoT.

The residential accounted for the largest revenue share in 2023 and is anticipated to register the fastest CAGR growth during the forecast period.

• The rise of smart homes has led to an increased adoption of smart devices such as Android STBs and TVs, which offer enhanced user experiences and convenience.
• The availability of high-speed internet services in residential areas has facilitated easy access to high-quality content, driving the application for these devices.
• The surge in Over-The-Top (OTT) platforms has also increased their appeal in the residential sector, as they provide an efficient way to access these platforms on television.
• Additionally, they have become more affordable over the years, making them accessible to a larger consumer base in the residential sector.
• As per the analysis, continuous technological advancements in these devices, such as improved user interface, voice control, and integration with other smart devices, have made them more appealing to residential users.
• In April 2024, Vantiva, a worldwide tech leader in connecting consumers via Network Service Providers (NSPs), announced its sale of 22 million Android TV-powered set-top boxes (STBs), reinforcing its 25% market share by the end of 2023. Since the inception of Android TV, Vantiva has been at the forefront, executing over 30 upgrades and earning the highest number of certifications for Netflix, Amazon Prime Video, and Disney+ in the industry.
• These factors contribute to the expansion of the residential segment in the market.

Regional Analysis:

The regions covered are North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

North America is estimated to reach over USD 85.58 Billion by 2031 from a value of USD 30.10 Billion in 2023 and is projected to grow by USD 33.77 Billion in 2024. The market for Ultra-High-Definition (UHD) devices is mainly driven by to growing inclination of consumers towards accessing content via subscription-based over-the-top (OTT) platforms such as Netflix and HBO significantly contributes to the expansion.

• In February 2023, ADB a global provider of solutions for Video and Telco operators, unveiled Cheetah, its first multi-gigabit XGS-PON Wi-Fi 7 gateway. This new broadband solution incorporates all the major advantages of Wi-Fi 7, including a 320 MHz ultra-wide channel, 4k-QAM modulation, and Multi-Link Operation. It offers extremely high throughput (up to 19 Gbps), ultra-low latency, and increased capacity.

Furthermore, factors including increasing high-speed internet penetration and advancement in streaming platforms are projected to drive the market in North America during the forecast period.

The market in the Asia Pacific region was valued at USD 22.24 Billion in 2023. Moreover, it is projected to grow by USD 25.02 Billion in 2024 and reach over USD 65.39 Billion by 2031. Out of this, China accounted for the maximum revenue of 35.2%.

The region's growing streaming platforms and OTT are driving Android STB and TV market growth. Additionally, the growing internet usage and penetration offer Android STB and TV market opportunities for the key market players.

• In August 2021, Sumitomo Electric's Android TV-powered BS4K*1 set-top box, a device that converts broadcasting signals from cable TV, internet, and satellite into a TV-friendly format, hit a milestone of one million units in domestic shipments in May 2021. Since 2004, Sumitomo Electric has supplied around 4 million set-top boxes to domestic video service providers. The growing need for such devices has led to the evolution of the Android STB and TV market trends.

As per the Android STB and TV market analysis, Europe is anticipated to witness a substantial rise that is backed by the demand for UHD content across the globe. The growing inclination towards at-home entertainment via large-screen TV displays to cater to the surging Android STB and TV across the region.

The Android STB and TV market in the Middle East & Africa is poised for moderate growth, driven by factors such as increasing internet usage and smart TV penetration, fueling applications for OTT streaming services, especially in countries such as the UAE, Turkey, and South Africa.

The rising number of operators and service providers in countries including Brazil, Argentina, and Mexico is depicting the cumulative expansion of the Android STB and TV market in the Latin American Region.