Over the Top Devices and Services Market Size, Trends | 2031

Report Description

Over the Top Devices and Services Market Outlook 2031

The global over the top devices and services market size was valued at USD 190.5 Billion in 2022 and is projected to reach USD 1.34 Trillion by 2031, expanding at a CAGR of 24.3% during the forecast period, 2023-2031. The growth of the market is attributed to the substantial growth of the media & entertainment industry and the increasing demand for high-quality streaming content over smart devices.

Over the top (OTT) refers to the delivery of information and software over a network such as smartphones, smart TVs, and game consoles that are not under the regulatory control of the content or service provider.

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OTT was formerly restricted to the dissemination of audio and video material over the internet; but thanks to new technological advancements, the scope has been broadened to include any service or software accessible on the internet. The price of unique content would not have to be paid by the customer and users can access a variety of content thanks to the personalized contents.

In comparison to conventional cable and satellite providers, OTT media services have greater access, connectivity, flexibility, and portability. Furthermore, the deployment of advanced technologies by service providers as well as the provision of customized content, has increased the industry’s appeal and is expected to boost revenue generation over the next seven years.

Artificial Intelligence (AI) integration by a number of different service providers is a prominent development that has pushed to the market growth. Over the last few years, several players have focused their efforts on using such advanced technology for identifying consumer tastes and providing personalized and premium content.

Over the Top Devices and Services Market Trends, Drivers, Restraints, and Opportunities

• Rising demand for personalized content has resulted in a high rate of OTT device adoption. This is expected to boost the market.
• Increasing use of mobile devices and high access to faster internet speeds are anticipated to fuel the market expansion.
• Introduction of advanced data-capable devices and high-bandwidth services including live video streaming are propelling mobile data traffic to new heights. This is projected to propel the market growth.
• Increasing number of consumers willing to pay for premium services and providing free access to certain contents by OTT service providers are projected to spur the market.
• The COVID-19 pandemic resulting to imposition of lockdown has pushed to increase the number of consumers for OTT networks.
• Relatively high price of OTT service is a key challenge that can hamper the market growth during the forecast period.

Scope of Over the Top Devices and Services Market Report

The report on the global over the top devices and services market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Over the Top Devices and Services Market Segment Insights

Content Segment Analysis

Based on contents, the global over the top devices and services market is segmented into VoIP, text & images, and video. In 2019, the video segment held a key share accounting more than 45.9% of the global market and is expected to continue during the forecast period.

The growing number of OTT subscribers has been a significant contributor to the segment’s revenue. Breakthroughs in broadcast technology have pushed the rapid development of cutting-edge video streaming devices. Adding features such as adaptive bitrate streaming has made online streaming network services including Netflix and Hulu extremely appealing.

However, the VoIP segment is expected to exhibit at a fast growth rate during the forecast period owing to wide subscribing to VoIP services and applications provided by OTT service providers, impacted by a large growth of smartphone users worldwide.

Revenue Sources Segment Analysis

On the basis of revenue sources, the market is categorized into AVOD, SVOD, TVOD, and others. In 2019, the ad-based video on demand (AVOD) segment constituted a high revenue share of more than 35.8% of the global market and is expected to continue the trend in the coming years.

Over the last few years, AVOD OTT channels have gotten a lot of coverage, which has aided revenue generation. However, the prevalence of subscription-based video on demand (SVOD) services, on the other hand, is projected to overshadow the segment growth. The SVOD segment is projected to hold a key market share during the forecasted period owing to the providing of an optimum balance of value to both the consumer and the business.

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Platform Segment Analysis

On the basis of platform, the global over the top devices and services market is segmented into mobile devices & computers, smart TVs & set-top box, and gaming consoles. In 2019, the mobile devices and computers segment held a high market share representing more than 50.5% and is anticipated to grow significantly during the forecast period.

Due to the significant increase in global smartphone video viewership, content providers such as Netflix are gradually prioritizing mobile functionality for their subscribers. Moreover, launching of mobile-only subscription tiers in countries with strong viewership such as India is another key driver for the segment.

Furthermore, OTT video providers are continuously adding new functionality to boost the in-app experience, which leads to a rise in subscriptions, which fuels the segment's expansion.

During the forecasted period, the gaming console segment is projected to become a fast-growing segment. One of the main drivers driving the segment's growth is the growing number of connected gaming consoles around the world.

Deployment Segment Analysis

Based on deployments, the global over the top devices and services market is categorized into on-premise and cloud. Due to the strong focus on streaming infrastructure and facilities over the past decades, the on-premise segment accounted for a high market share accounting for over 55.7% in 2019.

Meanwhile, the cloud segment is expected to constitute a substantial market share in the coming years owing to easy database management while still saving time and money. On the other hand, the deployment of on-premise service takes more investment and time. Thus, the cloud segment is projected to expand at a rapid pace in the coming years.

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Device Type Segment Analysis

Based on device Types, the market is segmented into streaming media players and streaming sticks. The streaming media players segment is further divided into streaming box, connected gaming console, OTT set-top box, and others. With a market share of over 56% in 2019, streaming media players emerged as the most profitable segment.

In the last few years, there has been a huge increase in the market for streaming media players. During the forecast period, the segment growth is expected to be fueled by a growing number of product innovations. However, the streaming sticks segment is projected to hold a key share of the market due to small size and low cost.

In order to improve their market position, companies are focused on introducing their own brands with innovative features at a lower cost. Such features appeal to constantly evolving market demands around the world, resulting in a larger user base and faster product demand.

Regional Outlook

In terms of regions, the market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a market share of 46.2% in 2019 and is projected to hold this position during the forecast period due to rising investment in emerging IT technology in developed countries especially the US.

However, Asia pacific is anticipated to be one of the fastest regional market in the coming years owing to growing number of international service providers and their rising capitalized on the growing popularity of subscription OTT.

Due to the continuously increasing number of users, countries such as china and India are main contributors to regional revenue. Due to the popularity of mobile video viewing in emerging markets, leading service providers are introducing mobile-based subscription models, which is expected to boost the regional market growth.

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