The global conditional access systems market accounted for US$ 2.13 Bn in the year 2014 and is expected to grow at a CAGR of 9.1% during the forecast period 2015 – 2025, to account for US$ 5.53 Bn in the year 2025.
A Conditional Access Systems market basically constitutes set of devices that are being used in Internet or Television broadcasts to restrict any unauthorized access to the digital content provided by the service providers. In this way, the subscriber can have access only to the contents for which he has paid for and gets denied of any other benefits. Revenue, thus flows in the value chain of the Conditional Access System. Conditional Access Systems are generally embedded or added as an additional hardware with the devices like set-top box mounted with smart cards. The smart cards act as the encryption, decryption agents where all the customer information is stored. As per the plan subscribed by the subscriber, the smart card filters the digital content to flow in through the device. Thus, any unauthorized access is prohibited using CAS. The South America conditional access systems market region is expected to witness a CAGR growth rate of 8.1% in the coming years.
Exhibit: Conditional Access Systems Market by Region
Conditional Access Systems Market Insights
Surge in demand for hybrid set-top boxes
CAS (Conditional Access System) is a program designed for content protection, furnished into a receiving device such as a set-top box. CAS is specially designed to confine an unauthorized admittance to broadcast services in digital radio, television and internet services. In today’s fast moving lifestyle, people are too busy to take out enough time for indulging into entertainment with family. Moreover, it becomes difficult for them to set aside separate time for media and data. Thus, in that case a hybrid set top box is a promising invention that offers broadcast and broadband at the same time enabling a TV screen to be used as television for reception of digital video broadcasting and for Computer like function through internet access. Supported by the decreasing price of flat panel televisions and cumulative use of HD TVs, the demand for Hybrid STBs is expected to swell, driving the market growth of Conditional Access systems. Thus, by using hybrid set top box the users’ entertainment spectrum increases as it receives media from various sources, including the entire big pool of internet as well as DVB reception. With the availability of such set top box devices in the market, adoption of CAS solutions is more likely to increase as it facilitates the user to pay for only the subscribed channels and services, making it more organized and comfortable for both subscriber as well as service provider. Subsequently, driving the growth for conditional access systems market in the coming years.
Growing popularity of HD and 4K enabled devices to create significant new business opportunities for the market players
While some Television markets transformed into an uninspiring performance, there were some others recording healthy growth, which balanced out the overall performance of the regions. Factors such as rising numbers of offerings from various UHD TV models captivating consumer attention are accelerating the demand of UHD-TV in the market. The second quarter of the year 2016 also recorded a notable increase in the expenditure made by the consumers over home entertainment products. The purchase of new content subscription is also expected to grow along with the continuous shift taking place in the home entertainment industry towards the upcoming 4K Ultra HD TV. The North America region has recorded for the largest share in UHD TV market, China in Asia Pacific region is leading in terms of shipment units raised up to 25% of the local shipments from TCL, Skyworth and Hisense in the year 2015. Talking about the countries in Western Europe are also expected to witness remarkable growth in the Ultra High Definition Television (UHD TV) market. UK and Germany especially are expected to grow beyond five million units of shipments in coming years. Whereas USA and China are expected to break the limit of millions in future. Thus, the growing popularity of HD and 4K enabled devices across different end-user industry is expected to provide numerous profitable opportunities for the conditional access systems market players in the coming years.
Conditional Access Systems Market - Application Insight
In the global conditional access systems market for the television segment by application, the Television Conditional Access Services generally use additional hardware in the form of smart card that is mounted on a set-top box. The chip in the smart card contains all the information about the subscriber and is used to deny or allow access to any particular service. Also the card-less CAS for television services are slowly gaining traction in the market. The television CAS market is spread all over the world and the major players in this business are Conax AS, Verimatrix Irdeto, and Nagravision. The Television services also popularly called as Digital Video Broadcasting is basically a one to many unidirectional broadcasting data network used to send digital signals over different topologies. Due to the increasing competition in terms of services offered by service providers to customers, the revenues from TV license fee is considerably dropping and thus becoming threatening for businesses. Thus, the television segment by application for conditional access systems market is projected to provide numerous lucrative business opportunities for the market players in the forecast period.
Conditional Access Systems Market - Regional Insight
For the global conditional access systems market, currently looking at the current scenario of digital home entertainment products, developed countries like USA have high demand for next generation smart televisions making North America as a leading region in CAS market. U.S.A in North America accounts for approximately one third of the market share with respect to the highest revenue generation of more than 80 percent of the entire region. The country is pioneer in attaining digital television transition. North America being the core market of conditional access subscribers, there are several activities taking place on the back-end side of the market. System developers are collaborating with hardware manufacturers to ease out the reach to its end-users. Also, there has been notable rise in penetration of HD TV services resulting in high cost of conditional access solutions. Furthermore, because of powerful internet services, North America is anticipated to revive its leadership in the market during the forecast period. The North America conditional access systems market is expected to grow at a CAGR of 8.6% during the forecast period.
Exhibit: Conditional Access Systems Market by North America
Conditional Access Systems Market - Strategic Insights
Strategies such as acquisition, market initiative and new development was observed as the most adopted strategy in global conditional access systems market. Few of the recent strategies by some of the players’ operating in the conditional access systems market landscape are listed below-
2016: Nagravision SA acquired NexGuard Labs BV, a company providing solutions for digital content watermarking. This will help the company to expand its end-to end solutions for content protection.
2016: Verimatrix and Access Co., Ltd. has extended their partnership to secure and improve the convergence of IP services and traditional broadcast infrastructure. Access Co., Ltd. is a Japan based company that provides a range of software for mobile and connected devices.
2016: Cisco announced that the company is collaborating with Roku with a motive to enable its solution, Cisco Videoguard Everywhere video service protection on Roku TVs and Roku streaming players. The solution allows pay-TV operators to protect their content distribution.
GLOBAL CONDITIONAL ACCESS SYSTEMS MARKET SEGMENTATIONConditional Access Systems Market – By Application