According to a recent report published by Allied Market Research, titled, "Over-the-top Market by Component, Device Type, Content Type, Revenue Model, User Type, and End User: Global Opportunity Analysis and Industry Forecast, 2018–2025," the global OTT market size was valued at $97.43 billion in 2017 and is projected to reach $332.52 billion by 2025, growing at a CAGR of 16.7% from 2018 to 2025.
Rise in OTT demand in the developing regions, increase of SVoD services in emerging markets, expansion in the variety of contents, surge in the demand of live streaming channels, emergence of new OTT markets, and new developments in OTT technology are the factors that majorly boost the growth of the market. However, lack of data network infrastructure and latency issues are expected to hamper the OTT market growth.
Based on device type, the smartphones segment dominated the overall OTT market share in 2017 and is expected to remain dominant during the forecast period. This is owing to rising use of smartphones to stream OTT services and growing market for larger screen smartphones in the developing economies. Also, the segment is expected to witness the highest CAGR during the forecast period due to ongoing gradual replacement of TVs with smartphones and mobile app streaming via OTT, which might open doors to innovation in the OTT market.
The subscription revenue model was the highest contributor to the global OTT market in 2017 and is projected to remain dominant during the forecast period as the adoption of smartphones and tablets has increased among the target consumers base for vendors that offer SVOD and VOD services, whereas the availability of high-speed internet and smartphone applications has improved access to SVOD services. However, the advertisement revenue model is expected to witness highest growth due to rise in popularity of VOD ads.
The video content type segment dominated the overall over-the-top market share in 2017 and is expected to continue this trend during the forecast period, owing to progressive rollout of new technologies, which lead to video consumption. Also, the segment is expected to witness the highest growth rate during the forecast period due to the major shift of consumers toward online video streaming because of ongoing price wars.
Furthermore, the media & entertainment industry dominated the over-the-top market in 2017 and is expected to remain dominant during the forecast period, due to rise in numbers of digital-video consumers. This is expected to increase the demand of OTT services in media & entertainment industry. However, the IT & telecom industry is expected to witness highest CAGR in the OTT market forecast period due to the growth of over-the-top services in telecommunication industries for video calling, voice, and messaging services.
North America dominated the overall OTT market share in 2017, as the region is equipped with high broadband access as well as number of services, which have already moved on to providing several videos in HD and 4K. Also, new services such as AT&T, ESPN, Turner Sports and Crown Family Media Networks experienced strong traction in the U.S., which fuels the growth of the market.
Key Findings of the Over-the-top Market:
- By component, the solution segment dominated the market. However, the services segment is expected to exhibit significant growth in the global OTT industry during the forecast period.
- Based on device type, the smartphone segment accounted for the highest revenue of OTT industry in 2017 and is expected to witness significant growth in the upcoming years.
- Based on content type, the video segment generated the highest revenue in 2017 and is expected to witness significant growth in the upcoming years.
- Based on industry vertical, the media & entertainment industry generated the highest revenue of OTT market in 2017. However, IT & Telecom industry is expected to witness highest growth rate in the forecast period.
- Based on region, North America dominated the over-the-top industry in 2017. However, the Asia-Pacific is anticipated to exhibit substantial growth during the forecast period.
Some of the key market players profiled in the report include Amazon Web Services (AWS), Netflix, Hulu, LLC, Google LLC, Apple Inc., Facebook, Telestra, Rakuten Inc., Microsoft Corporation, and Tencent Holdings Ltd. This study includes OTT market trends, analysis, and future estimations to determine the imminent investment pockets.