Over the Top Services Market: Global Industry Analysis and Key Trends (2023-2029)

Over the Top Services Market size was valued at US$ 121.53 Bn. in 2022 and the total revenue is expected to grow at 14.2 % through 2023 to 2029, reaching nearly US$ 307.85 Bn.
Over the Top Services Market Overview:
Over-the-top (OTT) services are movies and television shows that are supplied directly to digital viewers without the need for a cable or satellite television subscription. OTT content can be downloaded and viewed directly by the user. Movies and TV services are examples of this form of material, which is provided directly over the internet to connected devices such as PCs, tablets, smartphones, and consoles. Over-the-top services are now in their infancy and are largely accepted as a trending technology around the world. The over-the-top market is expected to undergo innovative and complex transformations, allowing users to obtain whatever they desire from a single location.



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Global Over the Top Services Market Dynamics:
Some of the primary reasons driving the market are the significant growth of the media and entertainment industry, as well as the increasing demand for high-quality streaming content via smart devices. Traditional cable and satellite services cannot compete with OTT media services in terms of accessibility, connectivity, ease, and portability. Furthermore, the adoption of current technology by service providers, as well as the provision of personalised content, has increased the industry's appeal and is likely to fuel revenue growth during the forecast period.

Artificial Intelligence (AI) application by various service providers is a major trend with enormous market growth potential. The use of such advanced technology for evaluating client preferences and providing tailored and premium content has been the primary focus of industry participants in recent years. Furthermore, ongoing advancements in communication infrastructure, as well as increased internet penetration globally, have resulted in enormous demand for such services. This is likely to boost industry growth during the forecast period.

On the other hand, a lack of information about the benefits of over-the-top services, as well as restrained demand in developing countries due to limited internet access, are expected to stymie the growth of the over-the-top services industry in the near future.

Important OTT Video-On-Demand Growth:

In the first half of 2021, the ratings of the entertainment industry increased by 30% compared to 2021. According to research, by 2025, SVOD subscribers in Western Europe will reach 197 million, more than double the 88 million at the end of 2021. 2021. Due to COVID-19, approximately 45 million customers will be added in 2021 alone. OTT usage in India has soared, subscriptions of international brands such as Amazon Prime and Netflix have increased by 67% and 65%, and so on.

According to current projections, the average time spent on subscription OTT Video-on-Demand content in the United States has increased by 23% over the previous year and is predicted to exceed 62 minutes per day in 2021.

Potentials for the growth of the OTT Video Services Market:

 Broadband penetration is rising: The considerable increase in broadband penetration is a crucial driver in propelling the growth of the OTT video category globally. COVID 19 in particular has made governments see the need of advanced connectivity and its application in use cases such as advanced telemedicine, remote working, and education via augmented and virtual reality. Through greater mobile usage and expanded high-speed broadband internet access via fixed wireless connectivity, 5G has the ability to enable mobile technology use cases (FWA). As a result, governments around the world are investing in high-speed internet initiatives in order to increase broadband coverage and adoption.

 Smartphone adoption and high-speed mobile internet connectivity: Today, there are 4.78 billion mobile phone users worldwide, accounting for around 62 percent of the global population. Smartphones are used by 3.5 billion of these 3.5 billion people. Viewers receive access to content anytime, anywhere, and on their preferred device by simply connecting their smart devices to the subscribed OTT services. This is also facilitated by the fact that Mobile Network Operators (MNO), notably in rising APAC and MENA countries, have hastened the installation of mobile broadband and LTE.

 Technological advancements in media streaming: The cord-cutting mindset gave birth to OTT video. People did not want to be restricted to viewing stuff at specified hours. Instead, they desired to access material at any time, from any location, and on any device of their choosing. As a result, the OTT video on demand as we know it today was born. Technology has been critical in the spread of OTT video services. OTT systems are simple to use due to features such as cloud-based streaming services, support for live-content with Video-on-demand (VOD), a vast content repository, zero-buffering, adaptive bitrate streaming, and intuitive content discovery.

 Pricing models that are novel: Several OTT operators have used innovative pricing tactics to attract and retain subscribers on their OTT platforms. OTT Video on Demand can be monetized using a variety of models, including SVOD, TVOD, and AVOD. However, there is another popular strategy that OTT platform players are using these days, and that is the Freemium model. While prospective subscribers choose whether or not to sign up for an OTT service, OTT Players have devised this "freemium" model.

 The desire for exclusive data is increasing: The increasing popularity and demand for OTT is a ray of optimism at a time when production has ceased and no new material is being developed. Streaming on OTT platforms hasn't stopped, and users are yearning for more content. While linear TV viewership climbed by about 6-7 percent during the COVID issue, OTT VOD viewership increased by 38 percent. As a result, production companies are venturing into the digital sector to monetize their existing material.

COVID-19 Impact: OTT platforms are at an all-time high in their quest of a pandemic:

COVID-19 caused a condition similar to a house lockdown at first, and slowed the economy like never before, taking its toll in the form of business closures, widespread unemployment, an increase in the death toll, isolation, and an overall slowing of all things.

However, as a result of the strict lockdown, media consumption rose. The over-the-top (OTT) platform took off, soon becoming a popular source of entertainment for viewers. In India, platforms such as Arre, Disney+ Hotstar, Eros Now, BigFlix, Hooq, Netflix, Hungama Play, and a plethora of others have flourished and are popular among the majority of households. According to a recent news item in a major daily, there are about 40 providers of OTT services, which deliver streaming video over the internet.

OTT has undoubtedly had an impact on the entertainment sector. It has made watching movies easier and more convenient. A movie can be viewed from anywhere in the world by anyone having a smartphone and an internet connection.
Global Over the Top Services Market Segment Analysis:
The global Over the Top Services Market is segmented by Type, Streaming Devices, Monetization Model and Service verticals.

Based on the Type, the global Over the Top Services market is sub-segmented into Online Gaming, Music Streaming, VoD, Communication and Others. The Online Gaming segment held the largest market share of xx% in 2022. Online gaming is one of the fastest growing types of applications. Companies in this industry use OTT services to successfully publish and deliver games online, thereby providing scalability for a large number of players in multiple locations. For game material, they prefer high-definition resolution. The lack of high-quality game materials, coupled with poor network performance, slow frame rates, poor graphics, and unfavorable web page delays, may result in a decline in the number of online customers for gaming organizations.

Based on the Streaming Devices, the global Over the Top Services market is sub-segmented into Smartphones and Tablets, Desktops and Laptops, IPTV and Consoles. The Smartphones and Tablets segment held the largest market share of xx% in 2020. Continuous advancements in smartphones and tablets have resulted in the creation of complex apps that provide easy downloads, access to live films and music, and streaming of live material on laptops, tablets, smartphones, and computers regardless of place or time. Because of the substantial increase in smartphone video consumption around the world, service providers such as Netflix are increasingly prioritising mobile features for its users and have created smartphone-only subscription levels in high-viewing nations such as India.
Regional Insights:
North America held the largest market share of 48.3% in 2022. Established economies, such as the United States, are investing heavily in new technology. The region is home to prominent verticals capable of making the necessary investments in innovative and dependable IT infrastructure to accommodate the region's ever-increasing data flow. Furthermore, because of higher disposable income levels, consumer willingness to pay for premium content or a subscription is substantially higher in the region, encouraging regional market growth.

Asia Pacific is expected to grow at a highest CAGR of 23.9% in the global Over the Top Services market during the forecast period. The region has seen an inflow of multinational service providers looking to capitalize on the growing popularity of subscription OTT. Due to the ever-increasing number of users, countries such as China and India are key providers to regional revenue. Due to increased mobile video viewing in emerging markets, top service providers are also introducing mobile-based subscription models, hence boosting regional market growth.

The objective of the report is to present a comprehensive analysis of the global Over the Top Services Market to the stakeholders in the industry. The past and current status of the industry with the forecasted market size and trends are presented in the report with the analysis of complicated data in simple language. The report covers all the aspects of the industry with a dedicated study of key players that include market leaders, followers, and new entrants.

PORTER, PESTEL analysis with the potential impact of micro-economic factors of the market has been presented in the report. External as well as internal factors that are supposed to affect the business positively or negatively have been analyzed, which will give a clear futuristic view of the industry to the decision-makers.

The reports also helps in understanding the global Over the Top Services Market dynamic, structure by analyzing the market segments and project the global Over the Top Services Market size. Clear representation of competitive analysis of key players by product, price, financial position, product portfolio, growth strategies, and regional presence in the global Over the Top Services Market make the report investor’s guide.
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Global Over the Top Services Market


Report Coverage
Details


Base Year:
2022
Forecast Period:
2022-2029


Historical Data:
2018 to 2022
Market Size in 2022:
US $ 106.42 Bn.


Forecast Period 2023 to 2029 CAGR:
14.2 %
Market Size in 2029:
US $ 307.87 Bn.


 Segments Covered:
by  Type
Online Gaming
Music Streaming
VoD
Communication
Others


by Streaming Devices
Smartphones and Tablets
Desktops and Laptops
IPTV and Consoles


by Monetization Model
Subscription-based
Advertising-based
Transaction-based


by Service Verticals
Media and Entertainment
Education and Learning
Gaming
Service Utilities



Global Over the Top Services Market, by Region
North America
Europe
Asia Pacific
South America
Middle East and Africa
Key Players
1. Microsoft Corporation
2. Apple Inc.
3. Yahoo
4. Facebook
5. Netflix
6. Limelight Networks
7. Amazon Inc.
8. Dropbox
9. Google
10.LinkedIn Corporation
11.Evernote Corporation
12.Hulu
13.LLC
14.Rakuten
15.Electronic Instruments Co.
16.YouTube
17.Roku
18.IndieFlix
19.Vudu
20.Tencent
21.Kakao
22.Line

Frequently Asked Questions:

1] What segments are covered in Over the Top Services Market report?
Ans. The segments covered in Over the Top Services Market report are based on Type, Streaming Devices, Monetization Model and Service Verticals.

2] Which region is expected to hold the highest share in the global Over the Top Services Market?
Ans. North America is expected to hold the highest share in the global Over the Top Services Market.

3] What is the market size of global Over the Top Services Market by 2029?
Ans. The market size of global Over the Top Services Market by 2029 is US $ 307.85 Bn.

4] Who are the top key players in the global Over the Top Services Market?
Ans. Microsoft Corporation, Apple Inc., Yahoo, Facebook, Netflix and Limelight Networks are the top key players in the global Over the Top Services Market.

5] What was the market size of global Over the Top Services Market in 2022?
Ans. The market size of global Over the Top Services Market in 2022 was US $ 121.53 Bn.