Over-The-Top Services Market: Current Analysis and Forecast (2022-2028)
Emphasis on Services (Communication, Media, Applications, Cloud); Service Verticals (Media & Entertainment, Education & Learning, Gaming, Service Utilities); Type (online gaming, music streaming, video on demand, communication, others); Business Model (subscription-based, advertising-based, transaction-based); Streaming Devices (smartphones & tablets, desktops & laptops, IPTV & consoles, set-top box, others); End-User (Healthcare, media & entertainment, e-commerce, it & telecom, education, others); and Region/Country
Global Over-The-Top Services Market is expected to grow at a significant rate of around 18% during the forecast period. An Over-The-Top service (OTT) refers to any streaming service that delivers content over the internet. OTT application is any app or service that provides a product over the Internet and bypasses traditional distribution. These services are most typically related to media and communication. In addition, they are usually lower in cost than the traditional method of delivery of media and communication. In recent years, the demand for OTT has risen dramatically due to the rising demand for smart TV as well as the growing adoption of online streaming services. For instance, in January 2021, Firstlight Media collaborated with the over-the-top service provider Struum to deploy a cloud-native streaming platform. This collaboration focused on offering multiple platforms’ content using a single Stream subscription.
Facebook, Netflix, Amazon Prime Video, Microsoft Corporation, Google Chat, YouTube, Kakao, Hulu, IndieFlix, and blinkBox Entertainment Limited are some of the key players in the market. Several M&As along with partnerships have been undertaken by these players to facilitate customers with hi-tech and innovative products/technologies.
Insights Presented in the Report
“Amongst service, media category to witness higher CAGR during the forecast period”
Based on services, the market is segmented into communication, media, applications, and cloud. The media category is to witness a higher CAGR during the forecast period. This is because of the rising number of platforms providing live streaming, such as music, online games, sports, and concerts. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, in May 2021, Amazon India introduced an ad-supported, free video streaming service called mini tv available in the Amazon shopping app. It has professionally curated and created content across fashion, comedy shows, beauty, web series, and tech news.
“Amongst service verticals, the service utilities to hold a significant share in the market”
On the basis of service verticals, the market is categorized into media & entertainment, education & learning, gaming, and service utilities. Among these, the service utilities held a significant share in the market in 2020. This refers to a service network in which the service provider primarily controls the network capacity for providing services, and online services rely on the public Internet for content delivery. Additionally, the service utility segment is expected to grow steadily in the coming years owing to the availability of high-speed internet and the proliferation of electronic devices.
“Amongst type, online gaming category to witness higher CAGR during the forecast period”
Based on type, the over-the-top services market has been classified into online gaming, music streaming, video on demand, communication, and others. The online gaming category is to witness higher adoption of OTTs during the forecast period. As this is one of the highly growing application areas. Many major players are operating to utilize OTT services to release and deliver games online successfully, with scalability for multiple users across different locations. Additionally, many users prefer HD quality for gaming content. Moreover, the online gaming market will be more transactional than subscription-based which is driving the growth of the market
“Amongst business model, transaction-based business model to witness higher CAGR in the market”
Based on the business model, the market is segmented into subscription-based, advertising-based, and transaction-based. Transaction-based business model category to witness higher CAGR during the forecast period. This is mainly because the users want to experience content ownership when gaming online. The consumer wants to purchase the entire content so that they can use it flexibly and comfortably at any time. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, YouTube is launching its OTT platform in 2022 to create dominance in the market
“Amongst streaming devices, smartphones & tablets category to hold significant share during the forecast period”
On the basis of streaming devices, the market is categorized into smartphones & tablets, desktops & laptops, IPTV & consoles, set-top boxes, and others. Among these, smartphones & tablets segment to hold a significant share in the market. This is mainly due to the increase in the adoption of mobile devices and tablets to stream over-the-top services and growth in the desired market for larger-screen smartphones in developing economies is accelerating the demand for the smartphones and tablets segment. Also, many continuous innovations in mobile devices and computers have resulted in the development of advanced apps that allow easy downloads, access to live videos and music, and streaming of live content on laptops, tablets, smartphones, and computers, irrespective of location and time. Thus, smartphones & tablets offer better control capability and performance in the field
“Amongst business model, transaction-based business model to hold a significant share in the market in 2020”
Based on the business model, the market is segmented into subscription-based, advertising-based, and transaction-based. Transaction-based business model category to witness higher CAGR during the forecast period. This is mainly because the users want to experience content ownership when gaming online. The consumer wants to purchase the entire content so that they can use it flexibly and comfortably at any time. Furthermore, the entry of global players into emerging markets adds to the growth of the market. For instance, YouTube is launching its OTT platform in 2022 to create dominance in the market
“Amongst end-user, media & entertainment category to witness higher CAGR during the forecast period”
Based on end-user, the market is segmented into healthcare, media & entertainment, e-commerce, it & telecom, education, and others. The media & entertainment category is to witness higher CAGR during the forecast period. This is increasing due to the rise in the number of digital video consumers. As many major key players are emerging from a variety of traditional media services, including broadcasters, rights holders, network providers, connectivity providers, and electronic device providers. Moreover, new providers are bypassing traditional cable and pay-TV solutions to offer subscription-based content streaming services. For instance, NBCUniversal Media, LLC is launching streaming platforms dedicated to the original content and live streaming. Similarly, rights-holder providers like Disney+ and HBO reserve original content for their own platforms.
“Asia-Pacific to hold a significant share in the market”
In 2020, APAC is anticipated to grow at a substantial CAGR during the forecast period. The growth is mainly due to smart devices, broadband, and internet connectivity, which is augmented by the emergence of advanced technologies, such as 5G, and 4G, developed payment infrastructure, and a dynamic local content ecosystem that is driving the over-the-top services market forward. Additionally, the countries such as China and Japan, are home to major companies, such as Sega and Namco, which contribute hugely to Personal Computer (PC) gaming revenues and have huge potential to grow in the coming years. Furthermore, due to the excessive increasing mobile video viewing in emerging markets, top service providers are also introducing mobile-based subscription models, hence boosting the regional market growth.
Reasons to buy this report:
- The study includes market sizing and forecasting analysis validated by authenticated key industry experts.
- The report presents a quick review of overall industry performance at one glance.
- The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolio, expansion strategies, and recent developments.
- Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.
- The study comprehensively covers the market across different segments.
- Deep dive regional level analysis of the industry.
Customization Options:
The global over-the-top services market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to connect with us to get a report that completely suits your requirements.
Table of Contents
Research Methodology for the Over-The-Top Services Market Analysis (2022-2028)
Analyzing the historical market, estimating the current market, and forecasting the future market of the global over-the-top services market were the three major steps undertaken to create and analyze the adoption of over-the-top services in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global over-the-top services market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Analysis of Historical Market Size
Step 1: In-Depth Study of Secondary Sources:
Detail secondary study was conducted to obtain the historical market size of the over-the-top services market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the over-the-top services market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report as services, service verticals, type, business model, streaming devices, and end-user. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the over-the-top services market. Further, we conducted factor analysis using dependent and independent variables such as various services, service verticals, types, business models, streaming devices, and end-users of over-the-top services. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the over-the-top services market sector across the globe.
Current Market Size Estimate & Forecast
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global over-the-top services market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2028 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
- The industry’s market size, in terms of revenue (USD) and the adoption rate of the over-the-top services market across the major markets domestically
- All percentage shares, splits, and breakdowns of market segments and sub-segments
- Key players in the global over-the-top services market in terms of products offered. Also, the growth strategies adopted by these players to compete in the fast-growing market
Market Size and Share Validation
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Split of Primary Participants in Different Regions
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global over-the-top services market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of services, service verticals, type, business model, streaming devices, and end-user in the global over-the-top services market.
The main objective of the Global Over-The-Top Services Market Study
The current & future market trends of the global over-the-top services market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
- Analyze the current and forecast market size of the over-the-top services market in terms of value (USD). Also, analyze the current and forecast market size of different segments and sub-segments
- Segments in the study include areas of services, service verticals, type, business model, streaming devices, and end-user.
- Define and analysis of the regulatory framework for the over-the-top services
- Analyze the value chain involved with the presence of various intermediaries, along with analyzing customer and competitor behaviors of the industry.
- Analyze the current and forecast market size of the over-the-top services market for the major region.
- Major countries of regions studied in the report include Asia Pacific, Europe, North America, and the Rest of the World.
- Company profiles of the over-the-top services market and the growth strategies adopted by the market players to sustain in the fast-growing market
- Deep dive regional level analysis of the industry
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