The broadcast equipment market is expected to be valued at USD 5.82 billion by 2023, growing at a CAGR of 4.87 percent between 2017 and 2023. The market growth can be attributed to the radical shift of products from hardware oriented to software and open architecture based; rising demand for ultra–high–definition (UHD) content production and transmission; and increasing D2C offerings through OTT services and multi-channel networks in developed economies. The incapability to broadcast equipment manufacturers to deliver ultra-high-definition (UHD) or 4K streaming and broadcasting services due to limited bandwidth and stringent rules and regulations by Federal Communications Commission are some of the factors restraining the growth of the market.
The increasing number of broadcasters offering direct-to-consumer (D2C) propositions through OTT services, along with traditional distribution routes, is fueling the growth of the market for video servers. In broadcasting, servers act as hosts and are used to deliver various contents or videos. These servers are used to store and play out multiple video streams without degrading the video signals. Broadcast video servers often store hundreds of hours of compressed audio and video (in different codecs), play out multiple and synchronized simultaneous streams of videos, and also ensure quality interfaces such as SDI for digital video and XLR for balanced analog audio, and AES/EBU digital audio.
North America held the largest share of the broadcast equipment market in 2016. The increasing number of cable and satellite television channels and the rising penetration of the Internet have provided broadcasters with many choices for their own creative and political expression. The growing cultural diversity throughout North America has also led to the increase in the number of broadcast channels, which, in turn, has boosted the demand for broadcast equipment in this region. Europe is also one of the potential markets for broadcast equipment. The overall broadcast equipment market in this region is highly fragmented with the presence of some large and several medium-sized companies that offer solutions pertaining to media and entertainment. Clyde Broadcast (UK), TNP Broadcast Sales Ltd. (UK), Alcatel-Lucent SA (France), Eletec Broadcast Telecom s.a.r.l. (France), EVS Broadcast Equipment (Belgium), and Broadcast & Production Services Ltd. (UK) are some of the major companies that offer broadcast equipment solutions in Europe. Markets Business Insider