The Rise of Streaming Devices: Role of 5G and AI in Reshaping Industry Dynamics

 Rise in penetration of the Internet has led to the creation of new tools that have helped entertainment companies provide digital content to their customers. Streaming services, for instance, is a technology that allows businesses to offer their online audio/video content through various electronic devices such as laptops, computers, smartphones, and tablets. To deliver these services, streaming devices have been developed to help connect televisions or home theaters to the Internet, thus allowing users to access online content seamlessly. Over the years, various technology companies have launched specialized hardware systems, such as dongles and streaming boxes, to address the evolving demands of their consumer base.

 Technological Advancements Creating New Investment Opportunities 

Recently, Allied Market Research published a report on the streaming devices market, which states that the industry accounted for $8.00 billion in 2018. The study further highlights that the sector is anticipated to gather a sum of $18.97 billion by 2027, rising at a CAGR of 13.2% during 2020-2027. The launch of 5G technology in several developed and developing countries has played an essential role in the growth of the market in recent times. 5G technology aids companies such as Netflix, Amazon, and Hulu in providing audio/video services via streaming devices at ultra-low latency. This reduces the chances of video lagging, thus offering an immersive experience to the viewer. 

At the same time, integration of advanced technologies such as artificial intelligence and machine learning have contributed to the expansion of the streaming devices industry. Video service providers have started using AI tools to enhance the quality of lower-resolution videos by reducing noise and improving clarity. Furthermore, these technologies aid in compressing videos in real-time, thus allowing viewers to access the content even in poor network conditions. AI-based solutions also enable companies to add automatic subtitle generation features to videos, thereby helping users watch movies and documentaries in different languages. Most importantly, AI assists in analyzing user preferences, browsing history, and viewing patterns to provide personalized content, ultimately increasing engagement and retention rates significantly. 

Novel Product Launches Strengthening the Position of the Sector 

Over the years, several technology companies have launched advanced products in the market, thus expanding the scope of the industry considerably. For instance, in August 2024, Google, a multinational technology giant, announced the revamp and expansion of its product portfolio by unveiling the new Gemini-AI-powered TV streamer. Set to replace the Google Chromecast, this streaming device has been designed to provide the ultimate smart home viewing experience. The system provides users with access to more than 700,000 movies and 800 free channels. Also, popular streaming apps including Netflix, YouTube, Apple TV, Disney+, and others, can be easily accessed through this device, making it one of the most advanced products in the market. 

On the other hand, in January 2025, Streamlabs, a software company managed by its parent firm Logitech, announced the launch of an Intelligent Streaming Assistant at CES 2025. Powered by multimodal AI and agentic frameworks, this high-tech solution offers users the chance to stream video games like Fortnite and provide live commentary for contextual understanding of the game. The solution allows content creators to add and process different inputs from different stakeholders, thus helping to gain full control of the stream. Furthermore, the technical assistant integrated into this system aids in streamlining the transitions and animations that are essential components of a stream, thereby running the video smoothly. 

To summarize, growth of the streaming devices industry is attributed to rise in penetration of Internet services across the globe. Furthermore, launch of 5G technology in developed and developing countries around the world has improved the revenue share of the market. The advent of AI and the launch of innovative products have further augmented the growth rate of the sector significantly.