The OTT market is set to reach US$86.8 billion by 2026.
According to new figures from Fortune Business Insights, this will represent a CAGR of 14.3% between 2019-26, with the market being worth US$30.23 billion in 2018.
The report notes that this growth will largely be driven by the constantly rising number of smartphone users around the world. By the end of 2018, smartphones represented 47.5% of all OTT video consumption.
Another significant factor contributing to growth identified by the report is the increasing number of company collaborations. The report noted that several large scale companies are looking to acquire small and medium enterprises, with one collaboration highlighted in particular being Netflix’s collaboration with Abla Fahita.
North America currently holds the highest OTT market share. The massive investment by leading OTT service providers such as Netflix will aid the growth of the regional market. As of 2018, the market in North America was worth US$12.97 billion and this value is likely to increase further in the coming years.