Over The Top (OTT) Market is expected to reach US$ 158.4 Billion by 2025

5G to Provide Growth Opportunities for OTT Market During 2017–2025

According to our latest market study on “Over the Top (OTT) Market Forecast to 2025 – Global Analysis – by Content Type, Platform, and Revenue Model,” the market is expected to grow from US$ 36.7 billion in 2016 to US$ 158.4 billion by 2025; it is estimated to grow at a CAGR of 17.2% during 2017–2025.

Growth in high-speed internet and the affordability of smart devices have amplified the global Over the Top (OTT) market size. The Over the Top (OTT) market trends such as 5G-enabled 4K resolution video streaming on mobile devices are anticipated to gain further traction. The global OTT market size is further expanding as the consumers are willing to pay a premium for 5G to get a better quality video at increased speed. Further, the advent of connected TVs has increased mobile OTT viewership enabling the service providers to penetrate remote areas. In urban regions, 5G internet has become standard as the next-generation cellular network technology provides faster and reliable internet speeds of roughly 100 times faster than the 4G LTE networks. Such market trends will increase the demand for live sports and event streaming. The OTT market leaders are continuously investing and innovating in their new product launches to provide the best experience to their customers. Carriers plan to bypass the barriers that tend to interfere with 5G signals with extensive networks of smaller network access points, which are estimated to boost the global Over the Top (OTT) market share.

Many market leaders are offering immersive live streaming possibilities including the live broadcasting of sports, award ceremonies, and other events on their platforms which is increasing the Over the Top (OTT) market share. For instance, Disney+ Hotstar is broadcasting live cricket league, and Facebook is broadcasting live award ceremony which is encouraging new media houses and publishers to experiment with this type of content format giving customers the cable TV experience. The 360-degree live streaming will further be more accessible by the use of 5G and virtual reality (VR) technology. An increase in video bandwidth enables to stream 4K video with defining features making the streaming experience much more immersive. This is propelling the global Over the Top (OTT) market share. Democratization of TV-quality content and reduced technology and distribution costs have increased the adoption of OTT.

Rapid Innovation in OTT Monetization

The Over the Top (OTT) market leaders are focusing on collaborative subscription packaging to create channels that will continue to grow tremendously. OTT technology enables connected TV (CTV) to stream on televisions. The expansion of 5G technology and accessibility of seamless 4K streaming solutions are further accelerating the home entertainment industry. The rise of digital technologies ensures a seamless experience, which tends to increase the investment in a variety of locally relevant content. Such factors are bolstering the global Over the Top (OTT) market size.

Based on content type, the Over the Top (OTT) market is characterized into VoIP, text & image, and video. The video segment was valued at a significant share in 2016. Based on platform, the Over the Top (OTT) market is segmented into smart devices, gaming consoles, set top box and laptop, and tablet & desktop. The smart devices segment held a significant share of the OTT market in 2016. Based on revenue model, the market is characterized into digital advertisement, subscription, rentals, and others. The digital advertisement segment was valued at a significant share in 2016.

Akamai Technologies, Inc.; Amazon.com, Inc.; Apple, Inc.; CBS Corporation, Inc.; Facebook, Inc.; Google, Inc.; HBO NOW; Hulu L.L.C.; Netflix, Inc.; and Roku, Inc. are a few major companies operating in the Over the Top (OTT) market.

OTT Market - by Geography, 2017 and 2025 (%)