Conditional access systems (CAS) are content protection solutions used for controlling unauthorized access to audio as well as video content. These systems are deployed at the receiving end i.e. set-tops boxes of consumers. The card-less conditional access systems are being increasingly adopted by consumers. Card-less conditional access systems have the capacity to eliminate logistical expenses and complexity associated with smart card distribution and replacement. Card-less conditional access system is a lucrative segment that is projected to expand during the forecast period. This is largely due to the rise in adoption of these systems among consumers.
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The most significant factor fuelling the expansion of the conditional access systems market is the rapid transition from analog to digital transmission. With a rise in demand for digital television set-top boxes, the conditional access systems market is expected to expand at a rapid pace in the coming years. Apart from this, continuous advancements in the broadcast and media industry are expected to create new opportunities for the conditional access system market. The global conditional access system market was valued at US$ 2,909.0 Mn in 2017 and is anticipated to expand at a CAGR of 6.9% during the forecast period.
With a rise in adoption of advanced television services such as high definition (HD) and ultra-HD (UHD) television services, the conditional access systems market is likely to expand at a rapidly in the coming years. A majority of households from regions such as North America and Europe receive high definition (HD) television broadcast. Demand for next-generation conditional access solutions is estimated to rise substantially during the forecast period due to a technological shift in the television industry.
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Furthermore, the increase in adoption of Internet services such as IPTV and OTT is another factor that is expected to fuel the expansion of the conditional access systems market during the forecast period. IPTV and other Internet streaming services are popular, especially in North America and Europe, making these regions favorable locations for the deployment of conditional access solutions. However, the global conditional access systems market is likely to be hampered by the high initial and operational costs of conditional access system in regions with a small customer base. The transition to digital television is still in the nascent stages in regions such as Central Africa, North Africa, Latin America, and South Asia.