The global Over the Top Market size is projected to grow from USD 202.5 billion in 2022 to USD 434.5 billion by 2027, at a CAGR of 16.5% during the forecast period, according to a new report by Markets and Markets.
Smartphones and Tablets segment to hold the highest market share during the forecast period
The penetration of smart devices has enabled OTT players to leverage internet connectivity with fast services, such as broadband and mobile data connection, 4G, and 5G technologies. Due to the rise of smartphone and tablet usage, viewers are more easily consuming digital content. The demand for OTT new OTT content is rising in proportion to the rise in the penetration of smartphones and tablets globally. Most smartphones and tablets have dedicated OTT entertainment apps depending on their operating systems i.e. Android or iOS. These devices have the largest market share as the average time spent over these by an average user is increasing daily.
Subscription-based segment to hold the highest market share during the forecast period
The subscription model is beneficial to both the company and the customer. Subscription based pricing attracts more customers because the subscription payments are lower for the customer and proves to be more economical. For the company, subscription based model offers a recurring and predictable revenue for the company. Hence for both company and customer this model proves to be beneficial. Also, subscription provides businesses a direct line of revenue from the consumers. As the consumer opts for a higher duration of subscription from monthly to quarterly or yearly etc. there are discounts offered to the customer that again motivates them to opt for longer duration services.
North America to hold the largest market size during the forecast period
North America is estimated to account for the major share of the Over the Top Market in 2022. This region has major production houses and content creators surging the OTT VoD platform. SVoD platforms are the major drivers in the film and entertainment sector. The region is further expected to have the highest R&D, along with the highest adoption of OTT technology during the forecast period. These are the major reasons for the increasing adoption of OTT services in the region. The early adoption of technology, high penetration of smartphones and smart devices etc. are few major reasons of the growth of OTT in this region in future as well. North America consists of developed countries namely US and Canada; the reason for the dominance of these countries is their well-established economies that enable investments in new technologies.