NEW YORK, June 20, 2023 /PRNewswire/ — The over-the-top (OTT) market is estimated to grow at a CAGR of 24.85 from 2022 to 2027. The market size is forecast to increase by USD 439.12 billion. For Comprehensive details on the market size of the historic period(2017 to 2021) and the forecast period (2023-2027) – View a Sample Report
Over The Top (OTT) Market – Market Dynamics
Technavio has announced its latest market research report titled Global Over the Top Market
Key Drivers
The growing preference for cloud streaming services is notably driving market growth. Technological advancements in wired and wireless technologies and telecommunication standards, such as 3G, 4G, and 5G, are boosting the adoption of cloud streaming services across the world. Cloud streaming services help prevent the illegal downloading and sharing of video and audio files. However, consumers are gradually shifting toward paid premium services to gain access to additional features, including shuffle play, advertisement-free, downloading, high-quality audio, and the skipping function. They have shifted from the use of iPods and music systems to cloud-based streaming services, which allow users to store, download, stream, and share content. Cloud computing provides users legal access to online music, even from remote servers, irrespective of the device used hence it is rapidly being adopted by firms. The growing Internet penetration, adoption of push strategies by market players, and better cloud streaming services will promote consumers to adopt cloud streaming services during the forecast period.
Significant Trends
The growing adoption of wearables with music streaming is a major trend in the market. Wearable technology is a rapidly growing segment of the global consumer electronics market. End-users are increasingly adopting smartwatches, such as Apple Watch, Moto 360, LG G Watch, and SAMSUNG Gear. Smartwatches replicate the smartphone experience by acting as a schedule manager and notification hub. For instance, in September 2020, the Garmin smartwatch launched Venu Sq and the Venu Sq Music Editio in India. However, It offers on-device music storage with health monitoring and fitness features that inspire you to keep moving. Other vendors of smartwatches, such as TomTom Spark3 Cardio + Music, Fitbit Versa, and Garmin Forerunner 645 Music, are also focusing on music as a selling point. Upcoming technological adaptations in smartwatch technology and wireless connectivity are expected to allow live OTT services to be compatible with these devices. Thus, the rising launch of wearables with offline and live OTT streaming services will drive the growth of the market in focus during the forecast period.
Major Challenges
The growing threat of cyberattacks is the major challenge hindering market growth. Consumers use the Internet to access OTT content for several purposes. The service providers collect through different channels such as personal data by tracking cookies to customize advertisements and reach the target audience. The data contains customer behaviour patterns, and it is used for customer profiling as well as data mining. Vendors are highly dependent on computer-based networks and the Internet, making the market prone to security-related issues. As this data gathered by service providers is highly sensitive, its indiscriminate use can infringe on customer privacy, thereby hindering the consumer’s confidence in a brand. Apart from consumer behaviour and profiling, service providers also collect geo-based information related to consumers to facilitate location-based services. This further intensifies the challenge regarding data security and cyberattacks, as the data collected, processed, and stored by the vendors can be misused. Hence, this increasing threat of data security and cyberattacks will impede the growth of the market during the forecast period.