The broadcast industry is transforming how content is created, distributed, and consumed. Broadcasters are shifting from traditional linear workflows that are bound by fixed-function devices to flexible, software-defined, and standards-compliant hybrid systems that enable the future of live streaming with artificial intelligence (AI) and ultra-low-latency broadcast infrastructure.
The global broadcast equipment market size is estimated at USD 5.16 billion in 2023, and is expected to reach USD 6.88 billion by 2028, growing at a CAGR of 5.91 percent during the forecast period (2023–2028), according to Mordor Intelligence.
This includes studio transmitter link, FM stereo generators, composite switchers, FM exciters, FM transmitter power amplifiers, antenna combiners, antenna arrays, and antenna switchers, the key factors in the growth of the broadcasting equipment market. In 2022, dish antennas accounted for 18.2 percent of the global market share and are expected to maintain their position over the next ten years. The increase in demand for lightweight, energy-efficient, and advanced antennas that are cost-effective, reliable, and have an improved life span is likely to fuel market growth.
Some major market players include Blackmagic Design, Cisco Systems, Ericsson, Harmonic EVS Broadcast, Grass Valley, and LiveU. Companies are collaborating and partnering with other organizations.
Vendors are constantly introducing new products. A new line of ATEM production switchers with a 3G-SDI connection has been introduced by Blackmagic Design. With standards converters on all inputs, a built-in Fairlight audio mixer with six bands parametric EQ, compressors, and limiters on all inputs, internal DVEs, chroma keyers, and professional transitions, the new ATEM SDI series of switchers have been intended to be quick to set up and simple to operate. The ATEM SDI live production switcher could be ideal for broadcasters searching for highly portable and advanced professional functionality.
Over the last few decades, consumer demand for better-quality video and audio has rapidly upgraded broadcast equipment products and technology. With content being produced in UHD and 4K formats, transmission in the same format for improved viewing quality has led to IP live-production technology. This is significant for live production, where a premium is placed on flexible and efficient system control.
The shift to IP video transport is paramount to achieving efficient scale in today’s digital landscape and is a necessary foundation for reaching new international markets. Organizations are pivoting to an IP-first future as they shift away from restrictive satellite and fiber-based models. Pioneering IP video transport technology empowers media owners to deliver high-value content reliably and cost-efficiently to untapped markets, extending reach and elevating monetization potential. Whether for remote production, remote collaboration, or remote operation, broadcast professionals leverage IP streaming technology to collaborate closely with their peers in real time.
Technological advancement has further driven broadcasters to provide UHD output to their premium users, fueling the market growth. In addition, the increase in the number of digital channels and the growing adoption of advanced broadcasting equipment, with 8K video quality in sports coverage and 4K quality in news coverage, provide impetus to market growth.
The sports section is the biggest market of TV viewers worldwide, finding ways to deliver video content at scale. The increasing number of devices and formats presents several challenges for broadcasters, service providers, content owners, and rights holders. The rental sports broadcast equipment sector is another significant revenue generator for the broadcast equipment market. The increasing number of international sports tournaments drives the rental market for broadcast equipment.
The rapidly evolving nature of digital audio and video formats and the need for open, national, or international consensus standards for creating and preserving digital audio and video are challenging the market’s growth. Standards for digital audio and video formats and compression methods are evolving with every new advancement in digital technology.
Asia-Pacific is expected to witness the highest growth rate. Home to densely populated countries, India and
China, the region is one of the fastest adopters of technology with increasing high-speed internet penetration. With 2.3 billion internet users, with 50.3 percent of global internet penetration, Asia accounts for half of the internet users worldwide.
Countries, such as Vietnam, Iran, Bhutan, and Bangladesh, are showing the most significant mobile penetration gains. The adoption of smart devices in the region is another factor creating the demand for high-definition video and audio in the region. According to GSMA, 64 percent of the residents in APAC already have smartphones, and the adoption is expected to cross the 80-percent market by 2025. Local vendors are also investing heavily to capitalize on the opportunities brought by the pandemic.
Japan and Korea are expected to emerge as a highly lucrative market owing to the next-generation information system. Progress from top quality (HD) to super superior quality (UHD) has become normal.
North America held a leading market share of 27.6 percent in the global landscape in 2022, and is expected to retain its leading position. Meanwhile, demand for broadcasting equipment in the Europe region will hold around 22.1 percent of the market in 2022. The availability of advanced broadcasting equipment services enabled the growing adaptation of new technology in Germany that held a market share of 10.5 percent in 2022. The broadcasting equipment market is utilizing AI for making the content visually more interesting and interactive.
The production and media businesses are realigning their capital investment in broadcasting equipment. Modern technology supports open architecture and is made up of cutting-edge software. These solutions give media and entertainment companies more flexibility because they are more compatible with various standards. Pay-per-usage is also in high demand, which enables media and entertainment companies to save on upfront installation fees for broadcasting equipment.
Looking ahead, broadcasters and their technology partners are identifying pioneering methods to harness new monetization streams amid increasing complexity and media fragmentation.
Notwithstanding the uncertainties of Covid-19, the market is well-positioned to benefit from an economic revival and the industry transition to cloud-based solutions. The industry has reached a stage where new habits and means of working have settled for most broadcast and media organizations. Cloud infrastructure is expected to support remote workflows and eliminate dependency on on-premises systems. For broadcasters, the pandemic has accelerated the adoption of distributed workflows for greater operational agility.
Media companies of all shapes and sizes are beginning to understand the full potential of the cloud for broadcast and streaming. Cloud and hybrid environments have been on the agenda of visionary media technology providers for some time, but they will continue to find their way into the mainstream of video production and distribution in 2023, as cloud has become fundamental to product strategy and the unlocking of new revenue streams. Cloud innovation is empowering technology partners to enhance almost every area of their product portfolio to design more agile, scalable, and affordable solutions to help media brands achieve evolving business goals in the digital-first era.
Cloud technology is fundamental to powering growth in the global esports market. We will now see esports scaling even further, reaching more digital platforms, markets, and geographies. While digital-native esports has been quick to embrace cloud-based production methods, we are now seeing greater adoption of cloud workflows for traditional event production as the media industry moves out of the experimentation phase and pioneers real-world, feasible cloud use cases.
Cloud-based production is now capable of producing live events of every caliber and scale, and in 2023 more content owners and broadcasters will use it for both core and overflow production work. Cloud-based production is now mature enough to be used for large-scale, mainstream productions – however, many broadcasters continue to use on-site and remote production for Tier-I live broadcasts, which often involve more complexity around the end-to-end workflow. This will likely continue for 2023, but cloud will increasingly be used to deliver lower-cost productions for second- and third-tier and online events.
With the rapid audience shift from television to digital, staying relevant in broadcast media is challenging but necessary for long-term viability. Broadcast television is not dead – but it is evolving rapidly, and there is a need to transform to avoid becoming irrelevant. Transforming means shifting from serving a TV audience to serving audiences no matter where they are – essentially, going from a TV broadcaster to an overall broadcaster.
Broadcasting by its nature involves a continuous stream of fragmented content that might vary widely in its nature and technical quality. It is easy to understand the appeal of AI, which shines in making sense out of large amounts of unstructured data finding its way into this industry.
The need for these new efficiencies in broadcasting has perhaps never been greater, as the industry continues to evolve to remain competitive with non-traditional entertainment sources, including streaming services and other OTT, or over-the-top, providers. What might have been a single radio or TV station a couple of decades ago in all likelihood now incorporates additional sideband channels and any number of digital platforms, including website and social media. That is a lot more content to be produced, and all in the face of greatly increased competition for ad revenues.