Over-the-Top (OTT) Market Outlook 2031
The global over-the-top market size was valued at around USD 131.26 billion in 2022 and is estimated to reach more than USD 426.85 billion by 2031, expanding at a CAGR of 14% during the forecast period, 2023 – 2031. The growth of the market is attributed to the COVID-19 situation as audience consumed more creative content at home via over-the-top platforms and smart devices during the pandemic.
Over-the-Top (OTT) is defined as a streaming service that delivers content such as music, video, podcasts, and others over the internet directly to consumers. It bypasses broadcast, cable, and satellite television platforms, who traditionally control and distribute content. OTT platforms are gaining popularity over the years due to their easy availability and accessibility.
Several companies are entering the OTT space that provides wide variety of content to consumers and increases quantities of advertisements inventory for marketers. Growing shift of consumers from traditional broadcast, cable, or satellite platforms to OTT streaming platforms is expected to boost the market during the forecast period. The Walt Disney Company reached 10 million subscribers upon their OTT service launch in the United States.
Netflix OTT platform has around 70 million subscribers in the US. OnePlus, a China-based consumer electronics company, launched OnePlus TV in the smart TV market of India. The device provides interconnectivity with smartphone and home networks and integration of several OTT platforms such Eros, Zee5, YouTube, and others on its dashboard.
Over-The-Top Market Trends, Drivers, Restraints, and Opportunities
- Availability of smart devices such as smartphones and tablets where OTT platforms are accessible drives the market.
- Accessibility of high-speed internet boosts the market.
- Increasing variety of creative content such as videos, music, podcasts, and others available on OTT platforms is expected to drive the market during the forecast period.
- Rising demand for customizable content offered by OTT platforms leads the market.
- Unavailability of high-speed internet, which is a requirement to watch OTT content seamlessly, in remote areas of developing countries can hinder the growth of the global OTT market.
- Increasing demand for smart TVs is expected to provide lucrative opportunities advertisers and content creators, which will drive the market during the forecast period.
Scope of Over The Top (OTT) Market Report
The report on the global over-the-top (OTT) 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 (OTT) Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Device Types (Smartphones, Smart TVs, Laptops, Tablets, Gaming Consoles, and Set-top Boxes), Content Types (Audio, Video, Communication, Games, and Others), Revenue Sources (Advertisements, Subscriptions, Transactional, Hybrid, and Others), User Types (Personal and Commercial), End-Users (Media & Entertainment, E-Commerce, Education, Health & Fitness, and IT & Telecom)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Amazon.com Inc.; Netflix Inc.; The Walt Disney Company; YouTube; Google, LLC; Roku Inc.; Apple Inc.; Hulu, LLC; Rakuten, Inc.; Microsoft Corporation; Facebook, Inc.; Sling TV; and Others
Over The Top (OTT) Market Segment Insights
Smartphones dominate over-the-top market
On the basis of device types, the market is divided into smartphones, smart TVs, laptops, tablets, gaming consoles, and set-top boxes. The smartphone segment is expected to drive the market during the forecast period due to increasing adoption of smartphones to stream OTT content.
Growth in potential large-screen smartphones market and increasing demand for affordable android-based smartphones are expected to boost the global OTT market.
Video segment is expected to grow at a rapid pace
Based on content types, the market is segmented into audio, video, communication, games, and others. The video segment is expected to grow at a rapid pace during the forecast period. Availability of surplus video content across numerous easily accessible OTT platform and devices drive the market.
Rising demand of subscription-based revenue source offers growth opportunities to the market
On the basis of revenue sources, the market is segregated into advertisements, subscriptions, transactional, hybrid, and others.
The subscription segment is expected to hold a large market share during the forecast period. Subscriptions provide service providers a direct line of revenue from consumers without any help from advertisements as secondary revenue source.
Subscription pricing are customizable according to needs of consumers, making the subscription-based revenue a preferred option among providers and consumers alike.
Increasing numbers of personal users of OTT services drive the market
Based on user types, the market is bifurcated into personal and commercial. The personal user segment is forecasted to drive the market. Growing use of smartphones and tablets and easily accessible internet increases views of OTT services for personal entertainment and knowledge, which boosts the market.
Media and Entertainment industry dominated the market
Based on end-users, the market is divided into media & entertainment, e-commerce, education, health & fitness, and IT & telecom.
The media & entertainment segment is expected to grow at a significant pace due to rising number of digital video consumers. The IT and telecom industry is anticipated to boost the global OTT market due to surging demand for OTT services for video-calling, voice-calling, and other communication services.
North America dominates the global OTT market
On the basis of regions, the market is segmented into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to hold a large market size during the forecast period.
Countries like the United States and Canada have well established economies, which enable investments in new technologies and advanced IT infrastructure for growing data traffic.
The global over-the-top (OTT) market has been segmented on the basis of
- Smart TVs
- Gaming Consoles
- Set-top Boxes
- Media and Entertainment
- Education and Training
- Health and Fitness
- IT and Telecom
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Amazon.com Inc.
- Netflix Inc.
- The Walt Disney Company
- Google, LLC
- Roku Inc.
- Apple Inc.
- Hulu, LLC
- Rakuten, Inc.
- Microsoft Corporation
- Facebook, Inc.
- Sling TV
The global OTT market share is highly competitive with key players adopting strategies like mergers, acquisitions, collaborations, partnerships, and product launches to strengthen their hold on the market. The kay players are Amazon.com Inc.; Netflix Inc.; The Walt Disney Company; YouTube; Google, LLC; Roku Inc.; Apple Inc.; Hulu, LLC; Rakuten, Inc.; Microsoft Corporation; Facebook, Inc.; Sling TV; and Others.
- In October 2020, Netflix, Inc. entered into a partnership with Microsoft Corporation to help coders learn data science and Artificial Intelligence (AI). Microsoft Corporation launched a global skill initiative inspired by a new Netflix original animated movie, Over the Moon (2020).
- In 2022, the Ministry of Information and Broadcasting in India is expected to enter into a collaboration with Netflix, Inc. to develop creative ecosystem of India by organizing training programs for visual effects (VFX), animation, music production, and post-production.