South America Set Top Box Market

The South America Set Top box Market is estimated to surpass its market size of $3.7 billion by 2027, growing at an estimated CAGR of more than 5.8% during the forecast period 2022 to 2027. One of the major factors driving the growth of the set-top box market is the proliferation of internet services and broadband, coupled with on-demand video content & HD channels are expected to support the market growth during the forecast period. This is expected to drive demand for Internet Protocol Television (IP TV), Integrated Receiver Decoders and Optical Network based solutions. Also, the increasing growth of the end-use industry with rising investments and developments in the region is one of the reasons behind the upliftment of the set top box market; owing to the increase in need-and-demand for a set-top box. For instance, according to the International Trade Administration (ITA), the Peru government launched a National Infrastructure Plan (PNIC), highlighting a US$110 billion need over the next 20 years to bridge Peru's long-term infrastructure gap In 2019. This gap distributed among various sectors and telecommunications would hold around 6% of the total investment. Also, in the PNIC, the Peru government prioritized 52 infrastructure projects, two-thirds of which are in the transportation and communications sector with an investment of US$28.5 billion and completion by 2025. Thus, the rise in the telecom sector would positively impact the growth of the set-top box market with the growing communication sector during the forecast period. Rising OTT content streaming on electronic devices such as laptops, tablets, smartphones and other display devices is adversely affecting set-top box demand.

Report Coverage

The "South America Set Top box Market Report - Forecast (2022-2027)" by IndustryARC, covers an in-depth analysis of the following segments in the South America Set Top box Industry.

• By Type: Cable Box STB, Satellite STB, Digital Terrestrial Television (DTT) STB, Internet Protocol TV (IP) STB, Over-The-Top (OTT) STB.

• By Content Quality: SD, HD & Full HD, Ultra HD, others.

• By Service Type: PayTV, Free-to-Air.

• By Distribution: Online, Offline.

• By Technology: DVB-C, DVB-S, DVB-T, Hybrid, MPEG-2, MPEG-4, ANDROID, USB Storage, others.

• By End-Use Industry: Commercial, (Hotels & Restaurants, Retail Stores & Shopping-Malls, Media & Entertainment, Healthcare, Education, Others), Government And Public Sector, Residential.

• By Geography: Brazil, Argentina, Chile, Colombia, Peru, Ecuador, Uruguay and Others.

Key Takeaways

Most South American countries are not much aware of e-commerce platforms to purchase products through the online platform. The inculcation of the people is also another major factor responsible for offline sales channels.

Robust demand for valuable and favorite contents streaming over the pay TV is boosting demand for pay TV services in the South America set top box industry. Also, rising government investments in the housing programs would increase the Pay TV usage in houses, which in turn drives the market growth in the South American region. Additionally, the increasing launches of advanced set top boxes for Pay TV, is driving the market growth during the forecast period.

The usage of DVB-S in both Single channel per carrier and Multiple Channel Per Carrier (MCPC) modes for direct-broadcast satellite services and for broadcast network feeds is driving the market. Also, the rise in launches of South Americas satellite television is driving the DVB-S technology growth. For instance, in 2022, Hispasat, the Spanish satellite solutions provider, is partnering with NAGRA, an independent content solutions provider, to develop a wholesale OTT (over-the-top) television solution, to enable Pay TV operators, an internet service provider in South America. Thus, the new launch in satellite television is surging the demand for DVB-S technology and also in turn driving the growth of the South America set top box market.

South America Set Top Box Market Segment Analysis - by Industry Vertical

Residential segment dominated the South America Set Top Box market size with a revenue share of 62.5% in 2021 and is expected to rise at a CAGR of 3.0% during the forecast period of 2022-2027. The rise in the development of residential construction are driving the South America set top box market owing to its demand for home entertainment purpose. For instance, Jundiai Reserved Alta Vista Residential Complex construction work commenced in third quarter of 2021 with the investment of US$50 million to provide enhanced living facilities in Jundiai, Sao Paulo; and expected to complete by 2023. This would eventually increase the need and demand for set top box. Thus, with the rising segmental growth, the demand for South America set top box market rises.

South America Set Top box Market Segment Analysis - by Type

The cable box segment dominated South America Set Top Box market size with a revenue share of 55.5% in 2021 and is expected to rise at a CAGR of 3.0% during the forecast period from 2022-2027. The demand for the set top box in the cable box segment is rising mainly due to Its need and demand to interpret and feed signal to a TV, DVD, etc. These basic units often include modems and memory to download and store program guide information and enable pay-per-view functions. For instance, Sagemcom and SFR launched the set top box 8 TV of SFR, a new extremely powerful set-top box that delivers very high-quality pictures, sound and also associates a voice assistant to control the video and audio entertainment experience with the voice & integrated loudspeakers; thus, anticipating the segmental growth of South America set top box market.

South America Set Top box Market Segment Analysis - by Geography

Brazil dominated the South America Set Top Box market size with a revenue share of 42.4% in 2021 and is expected to rise at a CAGR of 2.9% during the forecast period from 2022-2027. Rapid urbanization, coupled with economic improvement in the region has resulted in high demand for household appliances like TV, boosting the demand for a set-top box in turn. Also, the development and investment in the growing end-use like a residential, commercial and other sectors are escalating the market growth. For instance, the construction sector GDP in Brazil increased to US$3198.41 million in the fourth quarter of 2021 from US$3194.69 million in the third quarter of 2021. The rise in GDP will help to increase the investment in construction projects in the country. Thus, a rise in the residential and commercial units will increase the need and demand for set-top boxes, escalating the overall market growth of the South America set-top box market.

South America Set Top box Market Drivers

Government & Private sector initiatives to accelerate the digitalization of TV services

TV is experiencing a fundamental shift from analog to digital broadcasting. TV display devices are becoming digital in all aspects from its infrastructure and its content distribution models to its advertising and audience measurement models. Competition is rapidly growing not only within the broadcast, cable, and satellite markets but also with the addition of on-demand internet television, sling box, and mobile television. The government and private sectors are taking initiatives for the development of infrastructure, and technology which helps in the digitalization of TV display deivce services. For instance, the Government of Brazil is working toward the 5G spectrum in the country. Brazil's 5G spectrum auction was held in October 2021 and raised approximately US$ 8.5 billion. Deployment of 5G in Brazil could have a US$ 1.2 trillion economic impact and an increase in productivity of US$3 trillion by 2035. 5G spectrum winners will be expected to meet various buildout obligations, including providing coverage to 26 capital cities and the federal district by July 2022; coverage to all municipalities with >30,000 inhabitants by 2029; 4G coverage to all towns with >600 inhabitants by 2028; deploying optical fiber network backbone or backhaul networks to municipalities with >20,000 inhabitants by 2025 and to municipalities with <20,000 inhabitants by 2026; deploying optical fiber networks covering federal highways, and deploy a private 5G secure network for exclusive use by the federal government. This will eventually help in the acceleration of TV services in the country, as most of the TV and the set-top box has the Wi-Fi connectivity option to view contents and also helps in live TV reporting.

Emergence of Industrial robots are set to drive the market growth forward

The income and expenditure in South America are set to increase significantly over the coming years. The income gap between rural and urban households is expected to shrink due to increasing flow of foreign direct investment for the development of rural section of the countries. For instance, according to World Investment Report 2021, FDI flow in South America is around US$52 billion in 2020, with flows to Brazil and Peru reaching their lowest level in two decades. Thus, rise in FDI flow will help to boost the economy of the country and in turn increase the income of the people in the country. The rise in consumer spending will showcase the increase in income of the individual in the region. Also, the growth in income of the income will eventually rise the strengthens the individual in the society and the region which will help to increase the consumer spending over the digital products. Thus, rise in consumer spending will increase the need and demand for electronic products like TV, in turn will drives the market growth of the South America set top box market during the forecast period.

South America Set Top box Market Challenges

Rising OTT content streaming on electronic devices, such as laptops, tablets, and smartphones, is adversely affecting set-top box industry outlook

OTT streaming is premium content and a superior experience available over OTT platforms like Netflix and Hulu, with the user not needing cable in order to watch. To stream OTT, an individual only needs a high-speed internet connection and a connected device that supports the apps or browsers. The easy accessibility of OTT content is one of many reasons, it's so popular. There are many ways to access OTT platforms, on computer, phone, tablet, smart TV or gaming console; but one needs a subscription to the OTT platform. The growing digital smart phone users will eventually affect the market, as there are various apps available for free to watch the contents available on TV and can also view premium content on the OTT platform by taking subscription at a very low cost. For instance, according to GSM Association, the mobile technologies and services generated a 7.1% GDP in Latin America with a value of around $340 billion in 2020. Also, 73% of the population will subscribe to mobile services by the end of 2025. Also, the smartphone connections are around 500 million by the end of 2021 in Latin America with an adoption rate of 74%. Almost 100 million additional smartphone connections are expected in the next four years in the region, taking an adoption rate of above 80%. This will spur mobile internet adoption, enabling more people to access digital services for the first time. Furthermore, the economic contribution of the Latin American mobile ecosystem will grow by more than $30 billion by 2025, as the countries in the region increasingly benefit from the improvements in productivity and efficiency brought about by the increased take-up of mobile services. Thus, rise in the smart phone users in the region will help increase digitalization in the country, but it is adversely affecting the set top box industry as most of the TV contents is available free on various apps available over smart phone and browser. The premium contents is also available at very affordable cost. This eventually affects negatively over the set top box industry outlook.

South America Set Top Box Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Set Top Box Industry. The top 10 South America Set Top box companies include:

• America Movil (Claro)
• Technicolor
• ARRIS International
• Cisco
• DirecTV
• Cablevision
• HUMAX
• Samsung Electronics
• Nagravision
• Movistar

Recent Developments

In July 2021, Technicolor announced its agreement with SKY Brazil for the deployment of SKY Connect, a next generation set-top box (STB) that integrates Google Assistant far-field voice technology that allows subscribers in Brazil to navigate entertainment content on their TVs.

In May 2020, EchoStar announced that the company signed an agreement with DISH Network Corporation to transfer its EchoStar Satellite Services business that manages and provides broadcast satellite services primarily to DISH and its subsidiaries.

In April 2020, CommScope announced the completion of ARRIS acquisition, enabling CommScope to drive profitable growth in new markets and shape the future of wired and wireless communications.