Production switcher market rises with move to IP, report notes

The market for broadcast production switchers is expected to hit $250 million in 2019 due in part to the move to IP production, Futuresource Consulting notes in a new report.

“2018 was a landmark year for the industry,” said Chris Evans of Futuresource Consulting.

“Tier one broadcasters drove an uptick in investment, stemming from the ratification of SMPTE ST 2110 unlocking budget for new deployments. We also saw a significant number of projects for new flagship OB trucks in Europe and APAC, driven by demand for more live events coverage.”

Evans also notes that early adopters have proved the market for IP products, helping to build confidence in the broadcast industry technology.

“Despite the positive industry effects of the move to IP, the future is not so clear-cut,” adds Evans.

“Feedback from the industry suggests that the costs of installing a ST 2110 system are largely prohibitive for anyone except the high-end broadcasters. Right now, middle-market and lower-end customers are playing a waiting game, as the effective cost of implementing ST 2110 is still too great for them to achieve a return on their investment.”

Futuresource notes APAC represents the biggest opportunity but shows China will peak around 2021 as broadcasters conclude their upgrades to 4K technology.