Broadcast Equipment Market

Broadcasting is the process of disseminating information or messages to the audience in the audio/video format and the equipment used for this process are known as broadcasting equipment. Some examples of broadcasting equipment are TVs, radios, and close-circuit television devices. Factors such as the transition of hardware-oriented products to software-based architecture and the growing demand of over the top (OTT) content via different digital platforms are contributing to the growth of the broadcasting equipment market. However, the inability of the active original equipment manufacturers (OEMs) to cope with the rapid changes in the underlaying technologies is expected to hamper the market growth during the forecast period

A shift can be seen, owing to the advancement in the broadcasting technology, of hardware-based architecture to a software-based set up. In the past, content would be broadcasted through limited devices including radios and TV sets that followed a fixed schedule that was decided unilaterally at the channel headquarters. However, over time, the traditional hardware-oriented linear broadcasting has witnessed a shift in the content distribution paradigm with the introduction of non-linear and hybrid broadcasting. The non-linear broadcasting provides viewers the ability to watch what they want, when they want, on the device they want.

As per MRFR analysis, globally the viewing time for linear broadcasting has been declining by nearly 3 hours a week since 2012 while the non-linear broadcasting has been increasing by 4 hours per week by 4 hours. To cater to the same, the original equipment manufacturers (OEMs) are creating solutions that are more software-based, high speed, IP connected, and support open architectures that enable working with multiple standards. These solutions provide content broadcasting over IP using software-defined networks, virtualized cloud processing, and software-defined infrastructure. The entire production operation which includes creation and management of broadcast-specific acquisition, editing, distribution and storage functions are carried out using specialized software that run on cloud-based servers.

Many companies such as Arista, Cisco, and HP have developed broadcast-specific software that run on these systems, alongside traditional SDI-based equipment. However, the focus of the OEMs has shifted from traditional broadcasting equipment such as audio/video switchers, traditional editing suites, and signal routers to SDNs and IP in general to create flexibility in broadcast plants.

During the forecast period, the adoption of non-linear broadcasting and hybrid IP-broadcasting is expected to lead to wide adoption of software-based architecture and drive the market growth during the forecast period

5G technology is expected to influence almost every field of communication and content delivery. With advancement of IP-based delivery for both video and data content, 5G technology is expected to transform the future of broadcasting industry. 5G is a wireless standard that operates on a wide variety of frequencies; it is mainly divided into spectrum of two groups as FR1 (450 MHz – 6 GHz) and FR2 (24 GHz – 52 GHz) (millimeter wave spectrum). The mainstream wireless networks operate on the low & mid-band spectrum associated with FR1, which travels greater distances thus ensuring a stronger network reach. The networks utilizing this infrastructure offers higher speed, capacity, and lower latency as compared to the existing networks.

Within the broadcasting industry, the adoption of 5G technology is expected provide a wide range of frequencies that will enable increased use of traditional wireless spectrum for the distribution of audio and video content as well as digital radio. The use of 5G-HTHP (High-Power High-Tower) technology for broadcasting can offer widescale distribution of content in the existing broadcast frequency range without the requirement of any additional frequency spectrum. Furthermore, the broadcasters can use the broadband capabilities of 5G, coupled with the image quality, reception, and audio improvements from ATSC 3.0 to transform the broadcast transmission.

During the forecast period, the introduction and advancement of 5G network is expected to witness high investment from broadcasters to gain a better understanding of viewing preferences and consumer behavior. Subsequently, the early innovators in the broadcast equipment industry are expected to witness growth in market opportunities

The digital disruption in the global broadcast industry has accelerated the advances in the distribution of audio-visual content. Advent of digital formats including 4K UHD and 8K and the adoption of IP for broadcasting create a pressure on OEMs present in the broadcasting industry. The OEMs continuously need to upgrade the equipment to cater to the ever-evolving broadcasting platforms, which require extensive research & development and high investments. Furthermore, the growing competition and pressure to maintain profit margins pose a challenge for the OEM’s to establish where to focus time and investments. Therefore, rapid changes in the broadcasting technology can be a major restraining factor, slowing down the growth of broadcasting equipment market.