SAN FRANCISCO--The global OTT/IPTV market will reach $117.07 billion by 2025 according to a new report from Grand View Research.
The report suggests market CAGR will progress at 13.7 per cent. It says increasing demand for application-based services based on the internet will be the key factor driving industry growth.
Growing investments in network infrastructure due to the increasing number of OTT subscribers are likely to work in favor of the market, says the report, while rapid advancements in compression, transmission, and watermarking technologies are encouraging telecom providers to add IPTV to their service offerings.
Another reason for the predicted revenue growth in the market is improvements in the internet infrastructure and widespread internet connectivity in the home. In addition, the market is undergoing what the report calls vertical integration—telecom operators are collaborating with TV manufacturers to develop screens with built-in set-top-boxes. Such collaborations are being complemented with joint marketing agreements between TV manufacturers and telecom operators to promote OTT services.
Other key findings include:
- The subscription-based segment is expected to witness the highest CAGR of 11.1 per cent over the forecast period. The growth can be attributed to increasing demand for VoD services
- Asia Pacific is poised to dominate the overall IPTV market in terms of number of subscribers. The region is projected to witness a CAGR of over 8.0 per cent from 2017 to 2025. Growing internet penetration and increasing awareness about internet-based TV services are contributing to the growth in the region.
This article originally appeared in TV Technology sister publication TVB Europe.