In response to the proliferation of smartphones and their compatibility with OTT applications, the demand for OTT services is poised to rise exponentially in the coming years. Likewise, affordable rates of high-speed mobile Internet have bolstered the adoption of OTT market at large.
The global OTT services market was valued at USD 925.87 billion in 2016 and is estimated to expand at a CAGR of 16.4 percent from 2017 to 2025, reaching a value of USD 3,538.04 billion in 2025.
The OTT service providers have emerged as tough competitors for telecom service providers and cable operators. The mobile network operator messaging revenue has already declined to a great extent in the last five years and the impact has started to show up in their voice revenues as well. Also, the number of cord cutters and cord trimmers has gone up due to on-demand media content available and reasonable rates as compared to traditional cable operators.
North America led the OTT services market in 2016 and is expected to remain dominant throughout 2017 to 2025, according to the Transparency Market Research. The primary drivers for the growth of OTT services market in North America region are the highest mobile Internet penetration levels as compared to other regions with Internet speed from 13.1 to 14 Mbps in the USA and Canada. Apart from North America, Europe and Asia-Pacific are expected to experience significant growth in the OTT services market during the estimated period. The OTT services market in Asia-Pacific is expected to grow at the highest CAGR of 16.1 percent between 2016 and 2023.