Increasing adoption of online streaming services are the major factors driving the growth of the over-the-top services market
The global over-the-top services market size is anticipated to reach nearly USD 210 billion by 2025. In addition, it is expected to exhibit a CAGR of over 15% during the forecast period 2018-2025. Over the Top (OTT) service denotes any type of streaming of media or video which offers access to TV shows or movies directly over the internet to the viewers. The major providers of Over-the-Top service providers are Amazon Prime Video, Hulu, and Netflix. Some of the major features that OTT services provide are original content, premium content at low cost, and compatibility wide range of devices.
The existing and future over-the-top services market developments are defined to define the attractiveness of the market. Key impacting factors highlight the over-the-top services market opportunities throughout the forecast period. Factors such as the advancements in consumer electronics devices are driving the market growth. Also, the growing adoption of smartphones and the proliferation of internet services across the globe is the key factor in boosting the global over-the-top services market growth. Moreover, increasing adoption of online streaming services is also fuelling the market growth of over the top services. However, the availability of freemium over the top service models is expected to hamper the market growth. Furthermore, the advent of 5G connectivity is expected to be opportunistic for the market in the forthcoming years.
The report also highlights numerous aspects of the global over-the-top services industry by evaluating the market through value chain analysis. Besides, the over-the-top services market report covers various qualitative aspects of the over-the-top services industry in market drivers, restraints, and key industry opportunities. Furthermore, the report offers a complete assessment of the market competitiveness along with company profiling of local as well as global vendors.
The over-the-top services market has strong competition among the pre-established and new emerging players. Also, the over-the-top services industry players are targeting prospective markets to capture a competitive advantage over the other industry players by forming agreements, mergers & acquisitions, acquiring new startups & other companies, forming collaboration and partnerships, and expanding their business presence.
Based on the content type segment, the market is segmented into video, music, gaming, communication, and others. The video segment is anticipated to experience the highest market growth in the forthcoming years due to the growing demand for online content and video-on-demand services among teenage and young populations. On the contrary, the gaming segment leads the market growth in 2019 and it is expected to keep its dominance throughout the forecast period. The growth of this segment is mainly attributed to the growing adoption of OTT services among gaming companies to release and deliver games online.
The Asia-Pacific region is projected to experience the highest growth throughout the forecast period. The growth of this region is majorly based on the growing adoption of smartphones and the increased enhanced speed of internet connection in this region. However, the North American region dominated the overall market in 2019 and it is expected to hold its position throughout the forecast period 2018-2025. The dominance of this region mainly attributed to the significant investments made by the government in new technologies.
The major players of the global over-the-top services market are Amazon.com, Google, Microsoft, Apple, Roku, Netflix, YouTube, Facebook, Hulu, and Roku. Moreover, the other potential players in the over-the-top services market are Home Box Office, Indieflix, Tencent, Vudu, and Rakuten. The recognized companies are coming up with innovative and new over-the-top services and solutions. For instance, in September 2019, Apple announced the launch of Apple TV+ in India. Apple TV+ is an on-demand video subscription service that is available through the Apple TV app to the users at less than $2 per month.
Segment Overview of Global Over-The-Top Services Market
Streaming Device Overview, 2018-2025 (USD Billion)
- Personal Computer and Tablets
- Smart TV
- Gaming Consoles
Content-Type Overview, 2018-2025 (USD Billion)
Revenue Model Overview, 2018-2025 (USD Billion)
End Users Overview, 2018-2025 (USD Billion)
- Media and Entertainment
- IT & Telecom
Regional Overview, 2018-2025 (USD Billion)
- North America
- Rest of Europe
- Asia Pacific
- Rest of Asia-Pacific
- Middle East and Africa
- South Africa
- Rest of Middle East and Africa
- South America
- Rest of South America