Live IP Broadcast Equipment Market

Broadcasting is the process of disseminating information or messages to the audience in the audio/video format with the help of broadcasting equipment. Live IP broadcast equipment include routers, switches, encoders, decoders, transmitters, modulators, and amplifiers among others. Live IP broadcast support video formats from SD, HD to 4K, to UHD. It is more efficient and reliable for broadcasting of live studio and sports production. 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 factors contributing to the growth of the broadcasting equipment market. However, rapid change in broadcasting technologies is expected to hamper the market growth during the forecast period.

The traditional broadcast system includes single-purpose devices with a more complex design. It uses content-specific cabling to form a chain from source to destination. Owing to the advancement in the broadcasting technology, a shift can be seen of hardware-based architecture to a software-based setup. 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.

Broadcasting using software-based architecture facilitates reconfiguration by few clicks allowing more flexibility to produce more content in less amount of time. Software-based architecture running on IP infrastructure allows more efficient resource management and helps in planning and controlling broadcast workflow and better managing the overall broadcast. It includes software modules for streaming, embedding, video and audio processing, and monitoring.

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.

In February 2018, NewTek, Inc. launched NewTek IP Series, a software-driven, modular video production system with unlimited access to video sources and video mixing options. Using this video production system current and future resources can be integrated through an interconnected production workflow using commercial-off-the-shelf network infrastructure.

The advent of 5G technology is expected to influence almost every field of communication and content delivery. With advances in 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 over greater distances thus ensuring a stronger network reach. The networks utilizing this infrastructure offer 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, with better image quality, reception, and audio improvements from ATSC 3.0 standard to transform the broadcast transmission.

For instance, during FIFA U-20 world cup 2017 held in South Korea, KT Corporation tested interactive broadcasting of soccer games using 360-degree VR and time-slice technology offered through 5G connections. The 5G trial system includes core and radio access network, along with the 5G trial devices.

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.

Technology has undergone a series of changes since its inception in broadcasting. All the television and radio broadcast services in the 1990s used analog transmission. Over the years, there has been a shift of analog transmission of audio and video signals to digital transmission, which uses physical links and digital signals for sending and receiving content. The growing use of the Internet, smartphones, smart TVs and changes in viewing habits have driven the demand for digital transmission.

This digital disruption has accelerated developments in the distribution of audio-visual content in advanced digital formats such as 4K UHD and 8K. Furthermore, consumers are increasingly demanding improved live content delivery. To cater to the same, the content producers rapidly move towards an evolved production-distribution model which has created a pressure on the OEMs present in the broadcasting industry. The OEMs continuously need to upgrade the existing 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 OEMs 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 live IP broadcasting equipment market.