The media and telecommunications sector has witnessed significant growth over the last decade. The broadcast equipment market is mainly driven by strong commissioning from public service broadcasters (PSBs). In recent years there has been an increase in commissioning and co-production deals; furthermore, the investments in over the top (OTT) services such as Amazon Prime and Netflix are increasing. Moreover, the use of broadcasting equipment in sports events, news production, and corporate conferences is fueling the growth of the market. Also, direct-to-consumer (D2C) offerings through OTT services and multi-channel networks has increased considerably, especially in developed countries. The players in this market are increasingly launching affordable, scalable, and future-proof turn-Key Solutions for broadcasting. The companies are focusing on providing enhanced products to retain their existing customers and acquire new ones. However, the growth of market players depends on market conditions, favorable government regulations, and industry development.
Cisco Systems, Inc., Belden, Inc., Telefonaktiebolaget LM Ericsson, Harmonic Inc., and EVS Broadcast Equipment, are among the major players holding a prominent share in the broadcast equipment market. These players are focusing on expanding and enhancing their product offerings to remain competitive and expand their customer bases. Furthermore, these players are focusing on partnerships and collaborations to expand their business to strengthen their market position. Although the international players are dominating the market, regional and foreign players with small market shares also have a prominent presence. Apart from the development and enhancement of the existing product portfolios, the major players have entered into various partnerships and strategic alliances with locally existing companies to expand their geographic presence.
Cisco Systems, Inc. designs, manufactures, and sells internet protocol-based networking products and services related to the communications and information technology industries. The company’s strategic priorities include accelerating the pace of innovation, increasing the value of the network, and transforming the business model. The company follows an organic approach and has been involved in R&D and innovations to ensure a strong market presence and enhanced product portfolio.
Belden, Inc. through its broadcast solutions segment engages in the production and distribution of connectivity systems for television broadcast, satellite, cable, and Internet protocol television (IPTV) industries. The company has gained a competitive advantage over other key players by establishing partnerships and collaborations with players from various industries. Moreover, the company also focuses on cost competitiveness to maintain its global position.
Telefonaktiebolaget LM Ericsson specializes in providing telecommunications equipment and related services to mobile and fixed network operators. The company sees growth opportunities in its network’s division owing to widespread investments and adoption of 5G. It expects to achieve this growth through selective market expansion strategies, increased investments in R&D, and implementation of cost-effective leadership. Moreover, the company focuses on acquisitions and mergers to expand the customer base by innovating customer-based solutions; this helps the company strengthen its global presence.
Harmonic Inc. designs, manufactures, and sells video infrastructure products and system solutions worldwide. The company’s products enable customers to create, prepare, and deliver a range of video and broadband services to consumer devices such as televisions, personal computers, laptops, tablets, and smartphones. The company believes that its growth depends on market acceptance of several broadband services, new broadband technologies, and on several other broadband industry trends.
EVS Broadcast Equipment specializes in providing live video technology for broadcast and new media productions. The company’s strategic approach is to innovate its solutions and also focuses on maintaining the quality of products and believes in strategic partnerships. The company’s technological expertise has created an opportunity for the company to hold its position in different markets.
Although these players dominate the broadcast equipment market, other local and international players also have a considerable presence in the broadcast equipment market. The players in this market focus on collaborating with other businesses with strong market presence to expand their market reach, thus diversifying their product portfolio
THREAT OF NEW ENTRANTS
The broadcasting equipment is a highly capital intensive and well-regulated business which is limited by factors such as foreign institutional investor (FII) and foreign direct investment (FDI), number of directors, and minimum share capital needed for compliance. Furthermore, the development of broadcast equipment requires a comprehensive set of technical expertise and continuous technological innovation in line with the evolving broadcasting technologies which restricts the entry of new players to the market. Therefore, the new entrants present a low threat to the major stakeholders of the market.
BARGAINING POWER OF SUPPLIERS
The bargaining power of suppliers of broadcast equipment market is low and it is expected to remain the same during the forecast period. There is a huge competition among the broadcasting equipment manufacturers owing to their higher concentration in the market which makes the switching cost of buyers low. Furthermore, the buyers of broadcast equipment are well-educated about the product and opt for bulk purchase of standardized products which further influences the bargaining power of suppliers in the market.
BARGAINING POWER OF BUYERS
The major end-users of broadcasting equipment are free to air broadcasters, local cable providers, satellite providers, internet service providers, satellite broadcasters, radio broadcasters, and similar other broadcast service providers. The buyers of broadcast equipment are limited; they possess considerable product-related information which they use for comparison with similar available options as the purchase volumes of these is high. Therefore, the bargaining power of buyers is high, and it is expected to remain the same during the forecast period.
THREAT OF SUBSTITUTES
The threat of substitutes for broadcast equipment is low owing to the lack of available substitutes in the market. The only threat for market players within the industry is due to the product innovation by competitors. The market could witness heavy investments by players to develop innovative products for various broadcasting applications during the review period.
INTENSITY OF RIVALRY
The rivalry between existing players in the global broadcasting equipment market is expected to be high due to the limited number of manufacturers. The existing market players are continuously aiming to tap the same consumer base and enter into contracts with them. Players adopt strategies such as product differentiation and diversification to gain market share. Furthermore, these companies are constantly focusing on research and development to overcome the technical challenges faced by the broadcast equipment for transmission of high-resolution content such as 4K and 8K. In this regard, the competition among existing players is expected to be high during the assessment period.
