Indonesia OTT Market Size Expected to reach $16,386.82 Million by 2031

According to a recent report published by Allied Market Research, titled, “Indonesia OTT Market by Component, Device Type, Content Type, Revenue Model, User Type, and Industry Vertical: Opportunity Analysis and Industry Forecast, 2022-2031,” The Indonesia OTT market size was valued at $870.35 million in 2020, and is projected to reach at $16,386.82 million by 2031, growing at a CAGR of 31.3% from 2020 to 2031.”

The Indonesia OTT market share was valued at $870.35 million in 2020, and is projected to reach $16,386.82 million by 2031, registering a CAGR of 31.3% from 2022 to 2031. In the current scenario, over the top service providers extensively offer their services through mobile apps to assist customers by providing an easy and convenient shopping experience, online gaming, online payment, and banking. Rise in adoption of smartphones and electronic devices is a major factor that propels growth of the over-the-top market. In addition, factors such as surge in income of customers, availability of low-cost smartphones, availability of high speed & cost-effective internet, rise in number of netizens, and rise in investments in communication network infrastructure considerably contribute toward growth of the Indonesia over the top market.

On the basis of component, the solution segment dominated the Indonesia over-the-top market in 2020, and is expected to continue this trend during the forecast period. This is attributed to rise in demand for innovative over-the-top solutions for media sharing by consumers. Over-the-top streaming service providers allow users to directly transmit media anywhere at any time. However, the services segment is expected to witness highest growth as there has been an increase in adoption of services among end users, as they ensure effective functioning of software and platforms throughout the process. Moreover, increase in adoption of OTT software and platforms is expected to boost demand for these services. Depending on device type, the smartphones segment dominated the Indonesia over-the-top market share in 2020, and is expected to continue this trend during the forecast period. The growth of the segment is attributed to increase in use of smartphones to stream OTT services. There is a potential market for larger screen smartphones in Indonesia. In addition, advent of affordable Android-based smartphones have democratized online gaming and brought gameplay to millions of smartphone users across the country.

Depending on content type, the video segment dominated the Indonesia over-the-top market share in 2020, and is expected to continue this trend during the forecast period as online video streaming is a more feasible option available for consumers with rapid commoditization of data and ongoing price wars. This has led to influx of various global, local, and independent platforms across Indonesia in the past year that focuses on capitalization in the Indonesia over-the-top market market.

Post COVID-19, the Indonesia OTT market forecast is estimated to grow from $1,108.91 million in 2021, and reach $16,386.82 million by 2031, at a CAGR of 31.3%.

Various industries around Indonesia are severely affected by the COVID-19 induced recession; however, impact on the technology sector during the crisis was comparatively lesser than the rest of the sectors. Lockdowns have encouraged proliferation of OTT subscription businesses such as streaming services, digital media, e-learning, and communication software. OTT subscriptions have observed a surge during the pandemic, in terms of both time spent as well as newer audiences. Owing to this growing popularity of OTT platforms, various streaming service providers are observing growth in their subscriptions as well as revenues. COVID-19 has accelerated OTT adoption. More than half (57 %) of OTT users say they are streaming more OTT content during the pandemic. These habits are expected to continue even after COVID-19 with 73% planning to maintain or increase OTT consumption after the pandemic ends. For instance, Netflix reached about 15.8 million paid subscribers from January to March 2020 amid the coronavirus pandemic and it has made a profit of around $709 million on revenue of $5.8 billion during that period.

KEY FINDINGS OF THE STUDY

• By component, in 2020 the solutions segment dominated the Indonesia OTT Market size. However, the services segment is expected to exhibit significant growth during the forecast period.
• On the basis of device type, the smartphones segment accounted for the highest revenue in 2020.
• Depending on content type, in 2020, the video segment generated the highest revenue in Indonesia OTT Industry.
• On the basis of revenue model, the advertising segment accounted for the highest revenue in 2020.
• On the basis of user type, the commercial segment accounted for the highest revenue in 2020, however, the personal segment is expected to witness highest growth rate in the forecasted period.
• Depending on the end user, the media & entertainment segment accounted for the highest revenue in 2020.

Some of the key Indonesia OTT industry players profiled in the report include Amazon Prime Video, CatchPlay, Iflix, Mola TV, PT. Media Nusantara Citra Tbk. (MNC Media), Netflix Indonesia, PT Telekomunikasi Selular (Telkomsel), PT. Telekomunikasi Indonesia, Tbk (Telkom Indonesia), Vidio.com, and Viu. This study includes Indonesia OTT market trends, Indonesia OTT Market analysis, and future estimations to determine the imminent investment pockets.