Albany, NY -- (SBWIRE) -- 07/18/2017 -- The global IPTV market is fueled by declining cost of IPTV services, rise in global Facebook subscribers, demand for video-on-demand and HD channels, introduction of interactive services across several end-user segments, and supportive government initiatives to increase broadband penetration. In contrast, lack of proper infrastructure in developing countries, competition from cable and satellite TV operators, and need for large investments threaten to hamper the growth of the IPTV market.By type, the IPTV market is bifurcated into enterprises and residential. The former is further divided into small, medium, and large enterprises and in 2013, this segment dominated the overall IPTV market. Enterprises across several industries such as hospitality, finance, energy, education, media, healthcare, and transport have been depending on IPTV as a tool to communicate with employees, improve training, satisfy compliance requirements, minimize travel costs, and set up additional revenue outlets. IPTV services in these enterprises are also used to distribute on-demand content, company-wide briefings, events, and live as well as archived news.

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On the basis of geography, the global IPTV market is divided into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. Globally, Europe dominated the IPTV market in terms of revenue and in 2013 accounted for 38% of the overall market. The growth in this region is supported by increased IPTV subscribers, driven by development of supportive infrastructure, reduced IPTV subscription prices, increased broadband penetration, and rising demand for improved viewer experience.

Asia Pacific, on the other hand, is anticipated to be the most rapidly developing regional IPTV market by 2020. Asia Pacific excluding Japan is projected to register at a remarkable 21.10% CAGR from 2014 to 2020. The major contributors in this region are India, China, Indonesia, and South Korea, where expanding broadband infrastructure, proliferation of IPTV subscribers, growth of the middle-income group, and declining service cost have greatly supported the IPTV market.

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Growth of the IPTV market is also driven by factors such as the rising demand for video on demand, high-definition channels and hybrid services along with IPTV services. Instead of several driving factors, the IPTV market faces several challenges especially in the developing regions such as lack of infrastructure to offer a service free of delays and jitters, and maintaining the quality of IPTV services with the offered prices. In regions such as MENA, there is very little local or regional premium content production, due to which most shows are produced outside this region. Operators require huge investments to secure exclusive content, which involves enormous effort on their part. This becomes cost inefficient adding further expense and becomes a daunting issue, particularly considering the widespread practice of piracy in this region. Thus, protection of content and the prevention of piracy remains a significant challenge for the operators.

The global IPTV market is fragmented and the revenue generated in the IPTV market is shared by the leading players across the IPTV supply chain. It includes IPTV operators, software solution providers, middleware providers, content delivery network providers, and set-top-box vendors. Some leading IPTV service providers include China Telecom Corporation Limited, AT&T Inc., Orange S.A., Deutsche Telekom AG, NTT Communication, Verizon Communications, Iliad S.A., Etisalat Group, and Century Link. IPTV is anticipated to grow at a fast pace in the coming years. This is because the major telecommunication service providers are exploring IPTV as a defensive measure against intrusion from conventional cable television service providers and also as a new revenue opportunity.