Market Trends of Video Encoder Industry
Increasing Popularity of Video Streaming Platforms is Expected to Drive the Market Growth
- The rising popularity of video streaming services such as Netflix, Amazon Prime, and YouTube has heightened the appetite for high-quality, low-latency streaming. Consequently, this trend drives the demand for advanced video encoders. These encoders are tasked with compressing videos efficiently, maintaining quality, and guaranteeing seamless viewing, especially at resolutions as demanding as 4K and 8K. According to Inplayer, among OTT users, 18.4% fall in the 25 – 29 age bracket, with 11.5% in the 30 – 36 range. Notably, approximately 15% of OTT users are under 17 years old.
- The rise of user-generated and professional content has led to a boom in video production for streaming. Consequently, there is a growing demand for efficient video encoding solutions. These solutions are crucial for increasing content volume, ensuring swift uploads, and seamless streaming experiences. This trend serves as a significant driver of the video encoder market.
- Moreover, the surge in live streaming across events, gaming, sports, and social media has heightened the need for real-time video encoding solutions, driving the video encoder market. Encoders that can process live content swiftly, ensuring minimal delays, are pivotal for delivering a smooth and engaging viewer experience.
- Also, the surge in smartphone, tablet, and smart TV usage for video streaming has underscored the necessity for adaptive video encoding. Encoders, pivotal for tailoring videos to diverse screen sizes and network speeds, are driving the video encoder market.
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Asia-Pacific is Expected to Hold the Largest Market Share
- The advent of terrestrial digital television broadcasting in China has improved existing services and paved the way for new applications. The DTT broadcast standard enables wide-area fixed reception on HDTV and multiple SDTV programs. New services also include mobile, wearable, and high-speed applications.
- The Chinese government is also working to improve people's viewing experience, and China encouraged major cities to start offering free terrestrial HDTV broadcast content. This helps drive growth in the digital terrestrial market and the HDTV industry as a whole, including high-definition flat panels, chipsets, transmitters, software, and content creation.
- Investments by OTT services like Netflix, Amazon, and Disney+ Hotstar in original and acquired content will enable subscription video-on-demand to make up 93% of the total OTT revenue, increasing to 30.7% by 2024, amounting to USD 2.7 billion in India. By January 2024, YouTube emerged as the leading video platform in India, attracting 462 million users, significantly outpacing the United States in viewership.
- South Korean organizations are developing video encoder solutions to drive the broadcasting and streaming market. For example, KT Corp. is driving the pay TV services industry in South Korea regarding subscriptions and supervision, owing to its monopoly in the DTH segment and strong position in the IPTV segment, where it has the greatest share.
- In recent years, technological advances have led to the rapid spread of devices such as cameras, displays, and tablets that can record and display 4K video in higher resolution than high-definition televisions (HDTVs). With the proliferation of these devices, expectations are rising for next-generation video encoding for delivering HD video over broadcast and network delivery in Japan. 4K TVs are becoming increasingly popular in the home, and many models are available from major TV manufacturers.
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