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Conditional Access Systems Market Owes Growth to Switch from Analog to Digital Television

Conditional access systems have been identified as the most significant tool used by digital broadcast service providers against loss of revenue. Conditional access systems are used to keep unauthorized subscribers from accessing paid broadcast services and are mounted on receiving devices at the authorized user’s end.


Advancement of Broadcast Media Fueling Growth of the Conditional Access Systems Market


The conditional access systems market is primarily driven by the global transition from analog to digital television services and the advancements in broadcast media. The surging demand for digital television set-top boxes has, in turn, led to the growth of the conditional access systems market. High definition television broadcast has become a household term in developed regions of North America and Europe and soon becoming a common occurrence in Asia Pacific. Conditional access systems are used mainly by internet services, television, and digital radio. High penetration of digital television in developed regions such as Europe and North America drove the television segment to hold the largest revenue share of the global conditional access systems market in 2014. Registering a 10.3% CAGR from 2015 to 2022, this segment is projected to retain its lead over the next few years thanks to rising adoption of digital television in the emerging economies of Latin America, Asia Pacific, and Eastern Europe.


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Highest Growth of Conditional Access Systems Expected in Asia Pacific


The global conditional access systems market, according to a research study published by Transparency Market Research, is set to reach US$4,727.3 million by 2022, presenting a 10.3% CAGR from 2015 to 2022. The market was pegged at US$2,089.3 million last year. The competitive landscape of the worldwide market for conditional access systems is immensely consolidated. ARRIS Group, Inc., Verimatrix, Inc., Nagravision SA (Kudelski Group), Irdeto, Inc., Coretrust, Inc., Viaccess-Orca (Orange Group), Latens Systems Ltd., Alticast Corporation, Cisco Systems, Inc., Wellav Technologies Ltd., Austrian Broadcasting Services GmbH & Co. KG (ORS Group), and China Digital TV Co., Ltd. are some of the significant players operating in the global conditional access systems market. Of these, Cisco, Nagravision, and China Digital TV dominate the conditional access systems market, together accounting for a share of more than 70%.


North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa are the five major regional segments of the global conditional access systems market. With a 31% share of the total revenue in 2014, North America is the leader of the market and is driven by increased adoption of highly advanced services such as internet protocol television (IPTV) and high-definition television (HDTV).


Asia Pacific, on the other hand, is likely to grow at a 12.2% CAGR from 2015 to 2022, making it the fastest developing regional market for conditional access systems. The APAC market is fueled by the rising penetration of internet-based services and the switch from analog to digital television, especially in China and India.However, high operating costs in regions such as Africa, where the customer base is rather small, threatens to restrict the growth of the global conditional access systems market.


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