Conditional Access System Market: Snapshot
Conditional access systems (CAS) are content protection solutions used for controlling unauthorized access to audio as well as video content. These systems are deployed at the receiving end i.e. set-tops boxes of consumers. The card-less conditional access systems are being increasingly adopted by consumers. Card-less conditional access systems have the capacity to eliminate logistical expenses and complexity associated with smart card distribution and replacement. Card-less conditional access system is a lucrative segment that is projected to expand during the forecast period. This is largely due to the rise in adoption of these systems among consumers.
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The most significant factor fuelling the expansion of the conditional access systems market is the rapid transition from analog to digital transmission. With a rise in demand for digital television set-top boxes, the conditional access systems market is expected to expand at a rapid pace in the coming years. Apart from this, continuous advancements in the broadcast and media industry are expected to create new opportunities for the conditional access system market. The global conditional access system market was valued at US$ 2,909.0 Mn in 2017 and is anticipated to expand at a CAGR of 6.9% during the forecast period.
A conditional access system usually comprises a set of various devices utilized in Television broadcast or internet to limit any kind of unauthorized access to the content of digital platforms. The service providers provide this content on various digital platforms. With this, subscribers are able to gain access only to gain those content for which the person has paid and not any other content. As such, revenue is realized from the value chain of the conditional access system. This factors are estimated to work in favor of the global conditional access system market in the forthcoming years.
CAS or a conditional access system refers to a program that is designed and made for the protection of content. It is then provided to a device that would receive data, such as a set-top box.
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These days, people have been extremely busy with work and life and they are left with little or no time for family entertainment. In addition, it has become for difficult for people to put aside some time for data and media. As such, a hybrid ser top box comes up as promising solution offering broadband and broadcast services, such as function via internet access. Such technological upgradations are likely to support expansion of the global conditional access system market in the years to come.
There has been a surge in the offerings from different models of UHD TV, which have been drawing attracting the attention of consumers and increasing the sale of models of UHD TV. The price of flat panel televisions, cumulative utilization of HD TVs along with rising demand for Hybrid STBs is likely to foster growth of the global conditional access system market in the near future.
With the ongoing global pandemic, Covid-19, the global conditional access system market has suffered a setback, and it is likely to continue until life returns to normalcy following an invention of effective drug and vaccine. Nationwide lockdowns imposed by governments of several countries has adversely impacted the production activities, supply chain of conditional access system sector across the globe.
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With a rise in adoption of advanced television services such as high definition (HD) and ultra-HD (UHD) television services, the conditional access systems market is likely to expand at a rapidly in the coming years. A majority of households from regions such as North America and Europe receive high definition (HD) television broadcast. Demand for next-generation conditional access solutions is estimated to rise substantially during the forecast period due to a technological shift in the television industry. Furthermore, the increase in adoption of Internet services such as IPTV and OTT is another factor that is expected to fuel the expansion of the conditional access systems market during the forecast period. IPTV and other Internet streaming services are popular, especially in North America and Europe, making these regions favorable locations for the deployment of conditional access solutions. However, the global conditional access systems market is likely to be hampered by the high initial and operational costs of conditional access system in regions with a small customer base. The transition to digital television is still in the nascent stages in regions such as Central Africa, North Africa, Latin America, and South Asia.
Furthermore, the demand for conditional access systems for television is driven by replacement trends and upcoming advanced television services. The revenue generated from providing content security to high-quality television services is higher than that from standard television services.
The conditional access systems market offers significant expansion opportunities with the development of cloud-based CAS for multiple devices. Cloud-based CAS includes content security management, which if offered remotely through a hosted conditional access solution. This reduces the upgrade and other operational costs related to CAS. Cloud-based CAS are designed to provide high-level content security for any type of content and on any type of network. Partnership with different service providers and telecommunication companies and development of conditional access solutions for high-quality television services have emerged as key trends in the market. Companies such as Viaccess-Orca and Volicon, Inc. are focused on introducing advanced conditional access solutions in order to cater to the growing subscriber base in the region. Moreover, South American countries plan to complete the digital television transition in the next couple of years. This is expected to substantially drive demand for digital televisions in these countries along with that for CAS systems.
Key players in the global conditional access systems market include Cisco Systems, Inc., Kudelski Group (Nagravision SA), China Digital TV Holding Co., Ltd., Verimatrix, Inc., Irdeto, Inc., Viaccess-Orca (Orange Group), Austrian Broadcasting Services GmbH & Co. KG (ORS Group), Coretrust, Inc., Wellav Technologies Ltd., Alticast Corporation, ABV International Pte. Ltd., Sumavision Technologies Co., Ltd., Sumavision Technologies Co., Ltd., and ARRIS Group, Inc.
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