BROADCAST SWITCHERS MARKET ANALYSIS

Market Challenges And Opportunities

Market Dynamics- Restraints

1. High capital investments for procurement of broadcasting equipment is expected to restrain growth of the global broadcast switchers market during the forecast period

The major restraining factor before the adoption of broadcast switchers is their high procurement cost. Procuring new broadcast facility includes massive initial investment for various equipment such as lighting equipment, mobile video studios, cables, on-field recorders, encoders, mobile vide studios, and digital audio mixers.  As a result of this, small private broadcasters that operate over-the-air find it challenging to enter into the competitive market. Therefore, these factors are expected to restrain growth of the market in the near future.

2. Lack of proper standardization in content distribution is expected to hinder the global broadcast switchers market growth over the forecast period

Generally, multimedia content is delivered through IPTV, internet, mobile, and broadcast networks. The methods for delivery include unicast, broadcast, multicast, and peer-to-peer. The broadcast and telecom industry have their own standards track, based on different commercial requirements. Content providers bear high costs to offer content in different formats to several distribution pipes. Thus, inability to provide cross-platform solutions and interoperability for digital medial distribution leads is expected to hinder growth of the global broadcast switchers market in the near future.

Market Opportunity

1. Further digitalization to 3D and 4K technology can present lucrative growth opportunities

4k is a digital video format designed by NHK Science & Technology Research Laboratories and defined and approved by the International Telecommunication Union (ITU). 3D and 4k technology are expected to be the future of digital broadcasting. Constant investment by companies such as Sky and 3net on 4K Ultra HD, generating higher resolution is expected to boost the broadcast market over the forecast period. Moreover, Sony is putting its R&D and marketing efforts to produce 4K content. During the FIFA World Cup 2010 in South Africa, 25 matches were produced in 3D for testing format.

2. Large untapped market can provide major business opportunities

ITU (International Telecommunication Union) has mandated the conversion of digital television broadcasting globally because of its spectrum efficient transmission technology. Digitalization allows broadcast stations to provide more programming opportunities through multiple broadcast streams with improved picture and sound quality. In 2006 at Geneva, at a conference of the ITU, 120 countries signed a treaty to migrate to digital television. In accordance with this treaty, African, European and Middle-East regions have to migrate to digital television before June 17, 2015.

Market Dynamics- Drivers

1. Increasing transition from analog to digital broadcasting is expected to drive growth of the global broadcast switchers market during the forecast period

Digital broadcasting makes it easy for broadcasters to select source video feed and route it, thereby improving the process of digital broadcasting workflow. The broadcast industry has moved from analog to digital transmission that offers high-quality video production for customers, known as High Definition Television (HDTV). For instance, in 2009, the Federal Communications Commission (FCC), a U.S. government agency made it mandatory to have broadcast signals digitized. This has compelled broadcasters to invest in digital equipment including switchers, which in turn, is expected to drive growth of the global broadcast switchers market during the forecast period.

2. Growing emphasis on production automation is expected to propel the global broadcast switchers market growth over the forecast period

The requirement for enhanced efficiency and reduction in broadcasting costs have become crucial, owing to increasing number of TV broadcasters opting to broadcast programs and television channels in high-definition format. Growing focus on production automation is expected to boost the usage of production automation systems and its main components namely switchers. Furthermore, switchers allow program directors to swing from one camera to another and cue in graphics in an automated environment. Therefore, these factors are expected to propel the global broadcast switchers market growth during the forecast period.