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Over-The-Top (OTT) Communication Market Size, Share - Industry Trend and Forecast 2017 - 2025
This exclusive report will provide you with the market size and forecast (US$ Mn) for the global market and its segments for the period from 2015 to 2025 along with the growth rate (CAGR) from 2017 to 2025, considering 2016 as base year. In addition, drivers, restraints and opportunities, competitive landscape have also been covered under the current proposed table of contents, which will in due course help you to take strategic decisions with respect to the market.
Delivery of content, application, or services over internet protocol networks that are not directly provided by internet service providers is referred to as over-the-top communication. Over-the-top communication is sometimes referred to as value added services. Over-the–top communications apps have bypassed the traditional network distribution approach. OTT apps and services are those provided by Skype, FaceTime, and WhatsApp for voice/video call and messages on a mobile device.
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Decline in SMS service was largely after the introduction of over-the-top communication services. In the year 2011, OTT messaging service traffic was less than 5% of the overall messaging, globally. However, by 2013, OTT messaging outshined SMS as the primary source of messaging, and currently SMS represents less than 10% of the traffic globally.(source: Synchronoss Technologies Inc.). The statistics clearly displays the exponential adoption of over-the-top communication services and its growth trend.
OTT communication providers largely rely on global internet and network speed (ranging from 256 kilobits for messaging to speed in the range of megabits for video) to reach the user base. Services offered by OTT players are either free of cost or are provided at much lower cost to users. The business model of OTT communication providers are largely advertisement, in-app purchase/ content, unit pricing, subscription, and software licensing. Advertisement includes all those services funded by viewing advertisements. In-house purchase/content includes revenue generated when the user purchases extra features such as stickers or some premium service. Unit pricing includes revenue derived from off-net calls or terminating incoming calls. Players such as Skype and Microsoft base their business model on unit pricing. The subscription model includes the revenue generated from recurring charges for additional services offered by the company. The software licensing model is largely the revenue generated by purchase of software services by users.
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Three vital factors driving the growth of the over-the-top communication market are continuous improvement in devices whether television, smartphones, or laptops among others; consumer communication demand; and availability and easy accessibility of network technology. Device intelligence particularly in smartphones has grown exponentially in the last 5-10 years. The most prominent revolution in the smartphone market was the introduction of iPhones in the year 2007 that completely changed the end-user outlook toward the use of mobile technology. Since then, improvement in data speed, chip performance, camera technology, integrated sensors, and enhanced battery power has changed the mobile phone industry. Huge transition in IP network that has enabled an enriched communication experience has given a tremendous boost to all OTT apps and services. Additionally, growth in network investment by operators has improved the quality of services. The investment has led to faster broadband speed which has improved the OTT services experience among the consumers.
Barriers to OTT communication service usage is poor network quality largely in remote areas. However, continuous improvement in broadband accessibility and speed is expected to dilute the barrier of poor network completely.
The over-the-top communication market can be segmented on the basis of communication service type and end-user. The communication service type can be categorized into messaging and voice services, application eco-system, and video service. Messaging and voice services are largely the services provided by apps such as WhatsApp, Line, Viber, and Gmail among others. The application ecosystem is largely non-real-time and is linked to social network or e-commerce. These services are provided by Facebook, LinkedIn, Twitter, and Instagram among others. The end-user segment can be segmented into individual and commercial.
Key players in the over-the-top communication market are Akamai Technologies, Facebook Inc., Google Inc., Tencent Holdings, Microsoft Corporation, Mara Group (Nimbuzz), Dropbox, Inc., Limelight Networks, Inc., Rakuten, Inc., and Yahoo Inc. among others
The report offers a comprehensive evaluation of the market. It does so via in-depth qualitative insights, historical data, and verifiable projections about market size. The projections featured in the report have been derived using proven research methodologies and assumptions. By doing so, the research report serves as a repository of analysis and information for every facet of the market, including but not limited to: Regional markets, technology, types, and applications.
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The study is a source of reliable data on:
Market segments and sub-segments
Market trends and dynamics
Supply and demand
Market size
Current trends/opportunities/challenges
Competitive landscape
Technological breakthroughs
Value chain and stakeholder analysis
The regional analysis covers:
North America (U.S. and Canada)
Latin America (Mexico, Brazil, Peru, Chile, and others)
Western Europe (Germany, U.K., France, Spain, Italy, Nordic countries, Belgium, Netherlands, and Luxembourg)
Eastern Europe (Poland and Russia)
Asia Pacific (China, India, Japan, ASEAN, Australia, and New Zealand)
Middle East and Africa (GCC, Southern Africa, and North Africa)
The report has been compiled through extensive primary research (through interviews, surveys, and observations of seasoned analysts) and secondary research (which entails reputable paid sources, trade journals, and industry body databases). The report also features a complete qualitative and quantitative assessment by analyzing data gathered from industry analysts and market participants across key points in the industry’s value chain.
A separate analysis of prevailing trends in the parent market, macro- and micro-economic indicators, and regulations and mandates is included under the purview of the study. By doing so, the report projects the attractiveness of each major segment over the forecast period.
Highlights of the report:
A complete backdrop analysis, which includes an assessment of the parent market
Important changes in market dynamics
Market segmentation up to the second or third level
Historical, current, and projected size of the market from the standpoint of both value and volume
Reporting and evaluation of recent industry developments
Market shares and strategies of key players
Emerging niche segments and regional markets
An objective assessment of the trajectory of the market
Recommendations to companies for strengthening their foothold in the market
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