At a CAGR of 14.02% over the forecast period, the over-the-top (OTT) market is anticipated to increase from USD 58.92 billion in 2020 to USD 167.48 billion in 2028. The OTT industry is anticipated to develop as a result of the quick uptake of smartphones and other portable devices, the extremely cheap cost of using over-the-top services, and a rising trend toward original content and live video streaming. Other factors predicted to contribute to market growth include rising internet usage, the availability of high-speed internet, free OTT service trials, an increase in cloud media processing adoption, experiments with new content monetization models, consolidation, and strategic alliances between rivals.
Due to rising smartphone adoption for over-the-top service streaming and expanding potential markets for larger screen smartphones in developing economies, the smartphone segment dominated the overall over-the-top market share in 2019 and is anticipated to maintain its dominance during the forecast period. The introduction of reasonably priced Android-based smartphones, which have democratized online gaming and made games accessible to millions of smartphone users, is another factor contributing to the segment’s predicted strong growth rate in the next years.
Due to an increase in the number of consumers of digital video, the media and entertainment sector held the majority of the over-the-top market share in 2019 and is predicted to continue doing so during the forecast period. The demand for OTT services in the media & entertainment sector is anticipated to rise as a result. However, due to a rise in demand for over-the-top services in the telecommunications industry for video calling, phone, and messaging services, the IT & telecom sector is anticipated to see the greatest CAGR throughout the projected period.
Further key findings from the report suggest
During The Anticipated Period, The Online Gaming Market Will Be The Largest.
One of the application areas with the fastest growth is online gaming. Businesses in this sector employ OTT services to successfully release and deliver games online, with scalability for numerous players in various places. Users favor gaming material in HD resolution. Lack of high-quality gaming material combined with subpar website performance, sluggish frame rates, subpar visuals, and unwelcome webpage latency times might reduce the number of online gamers using a company’s website.
During The Anticipated Period, The Transaction-Based Online Gaming Industry Is Expected To Increase At The Fastest Rate.
The Over-the-Top Services Market’s subscription-based model will be less prevalent in the online gaming market, which will be more transactional-based. Users’ need for a sense of content ownership in online gaming will drive a rapid expansion of the transaction-based monetization model. They wish to buy the complete piece of information so that it can be used with comfort and flexibility at any moment.
Increased smartphone use has made it simple for users to access OTT services online, allowing for convenient usage of these services at any time and location and significantly contributing to industry expansion. The OTT market is anticipated to increase as a result of the extremely cheap cost of using OTT services and a growing trend toward original content and live video streaming. Other factors predicted to contribute to market growth include rising internet usage, the availability of high-speed internet services, free OTT service trials, an increase in the use of cloud media processing, testing out new methods for monetizing content, consolidation, and strategic alliances among competitors, a high propensity for social media use, and the ability to upgrade OTT services without having to make capital investments.
Type of Content (Revenue, USD Million; 2018–2028)
- Voice over IP
- Text and Image
- Audio and Video
Platform (Revenue, USD Million; 2018–2028)
- Smart Devices
- Laptops and Desktops
- Set Top box
- Gaming Consoles
Business Model (Revenue, USD Million; 2018–2028)
- In-app purchase/content
- Software Licensing
- Unit Pricing
Regional Outlook (Revenue, USD Million; 2018–2028)
- North America
- the Asia Pacific
- Rest of the World