Conditional Access System Market : Technological Advancements, Evolving Industry Trends and Insights

Conditional access systems (CAS) are the content protection solutions used to manage and deliver content only to the authorized subscribers. The main function of conditional access systems is to descramble and decrypt the receiving signals into intelligible format. Conditional access systems are used for content protection in pay television (pay TV) services, internet-based services and digital radio.

These CAS solutions are installed on the subscriber’s receiving devices such as set-top box. Conditional access systems, also called as revenue protection, is one of the most important network components for service providers for curbing revenue losses occurring due to piracy.

The most significant factor fuelling the growth of conditional access systems market is the ongoing digital television transition worldwide. Due to mandatory installation of digital television globally, the demand for set-top boxes is predicted to witness high demand in the coming years, thereby driving the market for conditional access systems.

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The demand for conditional access systems is also driven by the rising piracy issues growing across the globe. Another significant factor boosting the market growth is the rising advancements in digital television, internet services and digital radio services.

The global conditional access systems market is also driven by the growing penetration of internet-based services such as internet protocol television (IPTV), on-demand video and others in different geographic regions. The demand for conditional access solutions in these applications is mainly fueled from the developed regions having large penetration of IPTV and on-demand video services.

The global conditional access systems market is segmented into type of solutions, application and geographic regions. On the basis of solution type, the market is segmented into smartcard-based CAS and card-less CAS. In 2014, the smartcard-based CAS segment accounted for the largest share, in terms of revenue and adoption, in the global conditional access systems market.

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This was majorly due to the prolonged existence of these solutions in the market. However, the card-less CAS segment is estimated to witness the highest demand during the forecast period.

The highest market share of television segment is attributed to the rapidly growing penetration of digital television worldwide. In addition, the television segment is predicted to hold its dominant position throughout the forecast period due to ongoing digital television transition in countries such as China, India, Brazil, Argentina, Mexico and others.

In 2014, North America accounted for the largest share of over 31%, in terms of revenue, in the global conditional access systems market. This is due to the high penetration of advanced digital television services such as high definition (HD) television and substantially growing adoption of Ultra HD (UHD) television.

The major companies in the global conditional access systems market include Cisco Systems, Inc., Nagravision SA (Kudelski Group), China Digital TV Co., Ltd., Verimatrix, Inc., Irdeto, Inc., Austrian Broadcasting Services GmbH & Co. KG (ORS Group), Viaccess-Orca (Orange Group), Coretrust, Inc., Latens Systems Ltd., Wellav Technologies Ltd. and Alticast Corporation.

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