Broadcast equipment sales are expected to top $6.2 billion globally this year and are on track to double in value by 2031.
That’s the positive headline from Persistence Market Research‘s latest sector-wide analysis.
It suggests the broadcasting equipment industry will grow 7.7% this year to attain over $15 billion by 2031. Demand for distributed broadcasting equipment is one of the drivers with remote production gear forecast to rise 9.4% CAGR over the decade.
North America continues to lead the global market in terms of spend, accounting for 38.5% market share. This is set to expand at a CAGR of 8.9% with a market value of over $1.6 billion by 2031. The European market will grow faster though at a CAGR of 9.4% over the decade.
Increasing demand for UHD content production and transmission is identified as one of the primary factors driving market growth in North America.
Other high value markets include the Germany, UK, China and Japan. The market in the UK is anticipated to be valued at $1.4 billion by 2031. The Chinese market is expanding at a rate of 10% a year between now and 2031 albeit from a relatively low cap of $385 million today.
In the wake of the pandemic, there has been an increase in demand for digitization to run businesses across the globe, the analyst says. Growing demand for automation is anticipated to fuel demand. Companies across China are focused on implementing digital technologies in order to resume business operations through 2021 and beyond.
Demand for broadcasting kit in Japan and South Korea is expected to account for 36.8% and 18.6% value share, respectively, in the East Asia market.
The market in India could triple in size from $216.8 million in 2020 to $744 million by 2031. Demand for digital broadcasting equipment has increased rapidly in major economies of South Asia and Pacific, including India, and Australia and New Zealand, which has created key potential growth opportunities for market participants, per the research.
In India specifically, there has been steady growth in the adoption of broadcasting equipment across radio and television applications. Also, India happens to be a potential market for digital broadcasting technology, owing to rise in demand for digital content across various broadcasting channels.
READ MORE: Broadcasting Equipment Market (Persistence Market Research)
Splitting the market into product categories, the report finds encoders dominating sales with a massive 32.7% total market share. Other categories are dish antennas, amplifiers, switches, video servers, transmitters & repeaters, modulators, and others.
Growth in encoder share is attributed to rising demand for cost-effective and advanced broadcasting equipment along with increasing demand for UHD content production and transmission, per the report.
There has also been an increase in traction for video servers broadcasting equipment, and the segment is expected to surge at the highest CAGR of 11.5% over the decade.
The largest kit vendors are Cisco, Evertz, Harmonic, Ericsson and Belden, which together account for more than half of the global market.
Per the report, the market for broadcast gear is being driven by factors such as increasing focus on production automation, transition from analog to digital broadcasting, growing acceptance of HD content across the globe, and rising number of digital channels.
Furthermore, requirement of HD content, and increasing use of this equipment in sports broadcasting, news production, worship places, and conferences are also responsible for driving growth.
Rising adoption of smartphones and tablets and advancing technologies have further resulted in increased spending on cost-effective and advanced broadcasting equipment, as such, driving broadcasting equipment sales across the world.