Indonesia OTT Market to Reach $4.45 Bn, Globally, by 2027 at 33.1% CAGR: Allied Market Research
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Major determinants of the market growth
Rise in popularity of direct carrier billing in the over-the-top market, increase in adoption of smartphones and their compatibility with OTT applications, high internet speed, and surge in subscription of over-the-top videos in Indonesia have boosted the growth of the Indonesia OTT market. Moreover, economical charges of OTT services supplemented the market growth. On the contrary, challenges in consumer engagement and dominance in piracy of digital streaming ecosystem hamper the market growth. On the contrary, shift in focus toward generation of local content and integration of advanced technologies in OTT services are expected to open lucrative opportunities for the market growth in the future.
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The solution segment dominated the market
By component, the solutions segment held the largest share in 2019, accounting for nearly two-thirds of the Indonesia OTT market, due to rise in demand for innovative over-the-top solutions for media sharing by consumers. However, the services segment is projected to portray the highest CAGR of 35.1% during the forecast period, owing to increase in adoption of services among end users and effective functioning of software and platform throughout the process.
The commercial segment held the largest share
By user type, the commercial segment held the lion's share in 2019, contributing to more than half of the Indonesia OTT market, due to numerous benefits provided by these services and rise in number of enterprises in Indonesia that started using their own OTT services. However, the personal segment is estimated to register the highest CAGR of 34.3% during the forecast period, as several individual users are adopting OTT services to launch their own videos.
The e-commerce segment is projected to register the highest CAGR through 2027
By end user, the e-commerce segment is anticipated to showcase the highest CAGR of 40.9% during the forecast period, as the companies in the e-commerce industry are not only using over-the-top services, but also launching their own on-demand video streaming platforms. However, the media & entertainment segment held the largest share in 2019, accounting for more than one-third of the Indonesia OTT market, as the increase in popularity of over-the-top content has transformed processes and operations of media and entertainment companies.
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Major market players
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