The global broadcast equipment market was valued at USD 4.43 billion in 2020
It is expected to reach a value of 6, 13 billion USD by 2026, registering a CAGR of 5. 66% in 2021-2026. The growing number of devices capable of supporting digital media, together with increasing access to high-speed internet, give users access to the media content of their choice in terms of information, entertainment or social activity anywhere, anytime.
New York, July 20, 2021 (GLOBE NEWSWIRE) – Reportlinker.com announces the release of the report “Broadcast Equipment Market – Growth, Trends, Impact of COVID-19 and Forecasts (2021 – 2026)” – https://www.reportlinker.com/p06106050/?utm_source=GNW
– In the last few decades, the demand for higher quality video and audio from consumers has led to the rapid upgrading of the products and technologies of broadcasting equipment. Because the content is produced in UHD and 4K formats, transmission in the same format for improved viewing quality has led to IP technology for live production. This is important for live production, where a premium is given for flexible and effective system control.
– Broadcasting companies are increasingly focusing on product innovation to replace conventional SDI-based environments with live production systems that offer system control and high efficiency. Also, the growing popularity of high-performance video coding (HEVC) standards has stimulated market demand for equipment, such as encoders. In addition, the introduction of multi-channel video encoders has allowed users to generate many different streams, resulting in hardware reductions. HEVC can provide up to 50% better data compression than AVC or H.264 with the same or significantly improved video quality, at the same bit rate. This feature allows the transmission of 4K and HDR video over existing supply networks.
– Despite the uncertainty due to COVID-19, the market is well placed to take advantage of the economic recovery and the industry’s transition to IP and cloud-based solutions. The industry has reached a stage where new habits and ways of working have been established for most television and media organizations. The cloud infrastructure is expected to continue to support remote workflows and eliminate dependence on local systems.
– Regardless of the specially built hardware, any broadcasting infrastructure on site must be able to support peak demand. Therefore, only virtualization of features in local hardware does not provide the expected cost savings or flexibility that a SaaS model can bring. Even if the vendor retains ownership of the hardware and charges the customer for use through a paid model, he will have to reimburse the hardware costs. In addition, the customer relies on the service provider. This puts the consumer in a weak market position and cannot keep the rent from increasing from year to year. Therefore, there is a shift in the market from hardware to SaaS models.
– The rapidly evolving nature of digital audio and video formats and the lack of any open, national or international consensus standards for the creation and storage of digital audio and video are driving market growth. Standards for digital audio and video formats and compression methods are evolving with each new development of digital technologies.
Main market trends
Digital broadcasting is expected to witness significant growth
– The practice of using digital signals instead of using analog signals for broadcasting over the radio frequency band is called digital broadcasting. The technology has evolved over the years, with various governments around the world focusing on digital switching and analog switching off. In addition, the technology has moved from BVB-T + MPEG2 to DBV-T2 + MPEG7.
– The technology includes mainly three modes of broadcasting for television, such as DTH-Direct to Home, also called satellite TV, IPTV-terrestrial or Internet protocol TV and cable TV, which mainly involves customers to pay and use. In addition, the technology proved to be worthy of transmitting radio frequency signals for FM and podcast channels.
– The market is witnessing various mergers, acquisitions, partnerships and cooperation, which increases the need for digital broadcasting infrastructure, which includes antennas, switches, servers, encoders, transmitters, repeaters, among others. For example, in February 2021, iHeartMedia, an audio company that mainly publishes podcasts in America, acquired Triton digital, a technology provider for the digital audio and podcast industry, for $ 230 million. The acquisition is expected to improve broadcasting, audio, on-demand, digital streaming radio and podcasting methods.
– Various investments are made by sports associations to broadcast various sports activities such as rock climbing, cricket, football tennis, among others, on linear TVs. For example, the International Sport Climbing Federation has announced a partnership with four broadcasting partners such as RAI Sport, Sport5, SRG-SSR and Zhibo.tv to broadcast World Cup and IFSC World Championships in 2021, the finals of the 12 competitions. The World Cup, and the World Cup in Meiringen, Switzerland, either with a live or live delay. This further increases TV operators’ investment in infrastructure to target a larger audience.
– Digital TV operators are also investing in content improvement for D2C line TVs such as Primary +, Disney +, Discovery + and OTT, which stimulates the development of infrastructure broadcasting. Some of the TV operators’ strategies are to ensure that the entire content of the D2C platform is broadcast on linear TV channels. However, broadcasters are still questioning and planning whether to show D2C content and then air it for free after a certain period of time, or to show some free content on air and then show the full content of D2C. Such cases are the reason for the growth of the market.
North America is expected to have significant market share
– The North American region is expected to witness significant growth over the forecast period. The rapidly growing number of satellite and cable TV channels, reinforced by the increasing penetration of the Internet, has given TV operators the opportunity to offer high-quality content to viewers, which is one of the most important factors behind the demand for broadcasting equipment. Online platforms in the region are expanding at a rapid pace and include new innovative technologies designed primarily to enhance the personalized user experience.
– The growing use of smart devices, such as smartphones, tablets, laptops and others, is also contributing to market growth. According to the Pew Research Center, a non-profit organization, the percentage of adults in the United States who own smartphones has doubled since 2011. By February 2021, 85% of adults in the United States said they owned a smartphone. This was an increase of 4% compared to February 2019. The adoption of such portable devices, combined with high Internet penetration, leads to high video consumption.
– One of the main drivers for the market in the region is the rapid adoption of OTT services. The rapid growth of OTT subscriptions in the region is leading to the adoption of broadcasting equipment, especially encoders, which allow appropriate video quality and density by compressing video stream. The use of OTT encoders also provides continuous streaming with outputs from various formats to service various viewing devices such as laptops, smartphones, tablets and others.
– The transition of broadcasting equipment to software as a service (SaaS) also shaped the market during the forecast period. The SaaS-based infrastructure reduces the cost of the infrastructure, thus providing an integrated solution. In addition, the shift to pay-as-you-go from the load of TV equipment creates opportunities for the market.
– Local suppliers are also investing heavily to take advantage of the opportunities provided by the pandemic. For example, in March 2021, Signiant Inc. announced the acquisition of Kyno, which provides embedded media processing software. The acquisition helps Signiant Inc. to extend the functionality of the SaaS Software Exchange Platform (SDCX) by adding tools for interacting with media assets. With nearly one million users worldwide, the platform connects more than 50,000 media and entertainment companies of all sizes.
The competitive environment
The broadcasting equipment market is highly competitive due to the presence of many small and large market players operating in both the domestic and international markets. The market appears to be moderately concentrated, with key players adopting strategies such as product innovation, strategic partnerships and mergers and acquisitions, mainly to expand their product portfolio and expand their geographical scope in order to gain a competitive advantage in the market. Some of the major players in the market are Evertz Microsystems, Ltd., EVS Broadcast Equipment, Grass Valley, among others.
– June 2021 – Sencore Inc. has launched a new transcoder in its ATSC 3.0 product line. The Sencore TXS 3800 is a transcoder that converts multiple ATSC 3.0 services to ATSC 1.0-like formats for reuse and retransmission in existing translator, cable, and MVPD systems.
– April 2021 – Otelco, a cable operator in the United States, cooperates with Harmonic Inc., a well-known provider of software for the delivery of video, products, system solutions and services. Otelco uses Harmonic Cloud-Native Core’s CloudOS-Native Core platform and CableOS Central’s analytics service to provide gigabit speeds and an enhanced rural subscriber experience.
– March 2021 – Evertz Microsystems Ltd. partners with AWS Media solutions to offer broadcasters and media streaming services, advanced image and video analysis, and text-to-speech transcripts for use in the Evertz Mediator-X content management platform. In addition, Mediator-X can store speech files in time code text to allow video indexing and time code transition for QC, replay and post-production.
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