Showing precisely what a rich seam the industry is, new research from IHS Technology has revealed that the global market for professional broadcast equipment and services reached $63 billion in 2013.
This says the IHS Technology Professional Video Research practice represents 52% growth from $41 billion in 2007, and has been driven by the digitisation of pay-TV subscribers, spurring a significant rise in shipments of customer-premises equipment (CPE). The analyst adds that the market's expansion also has been propelled by a rise in transport services, driven by an increasing number of linear channels and nonlinear views by consumers.
In all, the research found that the top 10 professional video vendors accounted for just over a quarter (28%) of all market revenue in 2013. IHS calculated that Cisco was the leading provider in 2013 was Cisco, which participates in diverse industries such as conditional access, set-top boxes, encoders, Internet Protocol and optical equipment and systems integration. Other major players–which says the analyst tend have a primary focus on a single market segment, such as transport, set-top boxes or broadband CPE—include Arris/Motorola, Pace, SES, EchoStar and Samsung. Sony was recognised for its ventures in the professional camera and the storage/server industries.
"Owing to the multitude of broadcasters and pay-TV operators in each country, there is a very diverse market of small to medium companies offering solutions in the industry," said Tom Morrod, senior director for Consumer Electronics and Video Technology at IHS. "As a greater share of industry revenue shifts toward services, we're also seeing new entrants from the information technology, telecommunications and equipment industries trying to capture some of the new video service revenue."
Looking forward, the analyst says the next wave of expansion through 2017 will be driven by the provision of media-managed services, particularly those involving the transport, processing and management of digital content. By 2017, the managed service segment will grow to $32 billion, accounting for nearly half of the expected $69 billion total for the professional video market.
Yet even though the factors that have powered the growth of the market are expected to remain in force through 2017, total spending on equipment is expected to slow significantly. Indeed it warns that core markets in North America, Western Europe and East Asia are facing slower CPE shipment growth.
North American CPE shipments are expected to decelerate in the region until 2017 leaving Asia-Pacific to become the largest single market for broadcast technology in 2017. Western Europe, is expected to maintain stable revenues, as an increase in outsourced processing and transport services is balanced by a decline in the value of CPE and content capture equipment.