Broadcast Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Broadcast Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Broadcast Equipment Market was valued at USD 4.65 billion in 2021, and it is expected to reach USD6.48 billion by 2027, registering a CAGR of approximately 5.79% from 2022 to 2027.

Key Highlights

• With consumers' shift from television to digital media, staying relevant in broadcast media is challenging but necessary for long-term viability. Broadcast television is evolving significantly, and there is a requirement to transform to avoid becoming irrelevant.
• Over the last few decades, consumers' demand for better-quality video and audio has rapidly upgraded broadcast equipment products and technology. With content being produced in UHD and 4K formats, transmission in the same format for improved viewing quality has led to IP live-production technology. This is significant for live production, where a premium is placed on flexible and efficient system control.
• Technological advancement has further driven broadcasters to provide UHD output to their premium users, fueling market growth. In addition, the increase in the number of digital channels and the growing adoption of advanced broadcasting equipment, with 8K video quality in sports coverage and 4K quality in news coverage, provide impetus to market growth.
• The rapidly evolving nature of digital audio and video formats and the lack of open, national, or international consensus standards for creating and preserving digital audio and video are challenging the market's growth. Standards for digital audio and video formats and compression methods are evolving with every new advancement in digital technology.
• Notwithstanding the uncertainties of COVID-19, the market is well-positioned to benefit from an economic revival and the industry transition to IP and Cloud-based solutions. The industry has reached a stage where new habits and means of working have settled for most broadcast and media organizations. Cloud infrastructure is expected to support remote workflows and eliminate dependency on on-premises systems.
• For broadcasters, the pandemic has accelerated the adoption of distributed workflows for greater operational agility. Whether for remote production, remote collaboration, or remote operation, broadcast professionals leverage IP streaming technology to collaborate closely with their peers in real time.

Key Market TrendsEncoders is Expected to Witness Significant Growth

• Video encoders convert analog or digital video to another digital video format for delivery to a decoder. Video encoders input SDI as an uncompressed digital video signal into H.264 or HEVC for television broadcasting. These encoders are designed for ISR, and IPTV typically accepts analog composite video, SDI, or Ethernet, along with application-specific metadata, for transporting to different viewing or storage devices over a wireless or IP-based network viewing via computer monitors or for being captured by storage devices.
• The purpose of encoding a video is to create a digital copy transmitted over the internet. Broadcasters can choose between a hardware or software encoder, depending on the purpose of the stream and the budget. Most professional broadcasters use hardware encoder, but due to the high price point, most beginner-level to mid-experienced broadcasters go with live streaming encoder software.
• Hardware and software encoders function very similarly, as they both take RAW video files and convert them into digital files. Hardware encoding devices have the sole purpose of encoding, while software encoders work with a computer’s operating system; thus, encoding is not the primary function. Software encoders have graphic interfaces to manage the conversion process and allow control over elements, such as bitrate and stream quality.
• In January 2021, Magewell launched its new Ultra Encode family of universal live media encoders, providing H.264, H.265, and NDI|HX encoding with multi-protocol support for a wide range of professional applications, live streaming, remote contribution to IP-based production, and AV-over-IP.
• For broadcasting remote videos, low-latency video encoding is a requirement. Video latency is the amount of time it takes for a video signal to be transmitted from one place to another, sometimes called delay. Satellite is a significant contributor to video delay.
• As broadcasters move from satellite to low-cost internet connections, they need to minimize any delays introduced by the encoder or the network, which can be achieved by combining low-latency encoding with stream delivery, optimized to minimize the delay.

Asia-Pacific is Expected to Hold Significant Market Share

• Asia-Pacific is home to some densely populated countries such as India and China. The region is one of the fastest adopters of technology with increasing high-speed internet penetration.
• According to Cisco estimates, it is expected that the number of internet users (%) will reach 72% in 2023. Also, broad average speeds are expected to reach 157.1 Mbps, fueling the market's growth.
• Furthermore, according to a recent financial news portal learn bonds report, Asia accounts for half of the internet users worldwide. The region has about 2.3 billion internet users, with 50.3% of global internet penetration.
• Countries such as Vietnam, Iran, Bhutan, and Bangladesh are showing the most significant mobile penetration gains, according to a GSMA report. The adoption of smart devices in the region is another factor creating the demand for high-definition videos and audio in the region. According to GSMA, 64% of the residents in APAC already have smartphones, and the adoption is expected to cross the 80% market by 2025.
• Local vendors are also investing heavily to capitalize on the opportunities brought by the pandemic. For instance, in March 2021, Signiant Inc. announced the acquisition of Kyno, which provides embedded media processing software. The acquisition helps Signiant Inc. extend the functionality of the Software-Defined Content Exchange (SDCX) SaaS platform, adding tools for interaction with media assets. With nearly one million users worldwide, the platform connects more than 50,000 Media & Entertainment companies of all sizes.

Competitive Landscape

In the Broadcast Equipment market studied, the competitive rivalry between various firms depends on price, product, or market share, along with the intensity with which they compete.

• June 2021 - Sencore Inc. launched a new transcoder in its ATSC 3.0 broadcast solutions product line. Sencore TXS 3800 is a transcoder appliance that converts multiple ATSC 3.0 services into ATSC 1.0-like formats for reuse and retransmission in existing translator, cable, and MVPD systems.
• June 2021 - AT&T Business partnered with Cisco to bring Webex Calling with AT&T -Enterprise to Cisco's trusted Unified Communications Manager Cloud (UCMC), which will help businesses optimize operations and accelerate digital transformation in nearly any environment.
• June 2021 - ETV Bharat selected a range of Grass Valley solutions to underpin its upgraded production and editing operations. The set-up includes the video production and content management tool, GV STRATUS, integrated with non-linear editing software EDIUS. It gives the service provider, owned and operated by Ushodaya Enterprises Pvt., future-ready capability, allowing it to scale its operations both on-premise and remotely off-site.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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