London — The global market for professional broadcast equipment and services reached $63 billion in 2013, up 52 percent from $41 billion in 2007, according to the IHS Technology Professional Video Research practice. The report finds the rapid growth over the past six years has been fueled by increased shipments of customer premises equipment (CPE) thanks to the digitization of pay TV subscribers, and a rise in transport services.
While IHS analysts believe the same factors will be in play through 2017, total spending on equipment is expected to slow significantly. This will directly translate into slower CPE shipment growth in core markets in North America, Western Europe and East Asia.
Here's how IHS sees the market over the next several years in the core regions:
- North America: Dominant in the professional video market in 2013, North America is heavily dependent on CPE shipments, which are expected to decelerate in the region until 2017.
- Asia-Pacific: Because of decreasing CPE shipments in North America, Asia-Pacific will become the largest single market for broadcast technology in 2017 driven by growth in services, including satellite, fiber and teleport transport of increasing digital channels and content.
- Western Europe: Stable revenues are expected thanks to an increase in outsourced processing and transport services, which balances the decline in the value of CPE and content capture equipment.
However, IHS expects the "next wave of expansion" to be driven by media-managed services such as those that involve "the transport, processing and management of digital content." This segment is expected to reach $32 billion by 2017, accounting for almost half of the projected $69 billion in revenues for the professional video market.
“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 HIS, in a statement. “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.”
The report also reveals that the top 10 professional video vendors accounted for 28 percent of all market revenue in 2013 with Cisco leading the pack with business in a variety of industries including conditional access, set-top boxes, encoders, Internet Protocol and optical equipment, and systems integration.
Other major players are typically more specialized in specific areas such as transport, set-top boxes or broadband CPE, according to the report. These players include Arris/Motorola, Pace, SES, EchoStar and Samsung. The exception is Sony, which has large ventures in the professional camera and the storage/server industries.