Video on Demand Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Video on Demand Market Analysis

The Video-on-Demand Market size is estimated at USD 127.87 billion in 2025, and is expected to reach USD 212.18 billion by 2030, at a CAGR of 10.66% during the forecast period (2025-2030).

The video on demand landscape continues to undergo a fundamental transformation in consumption patterns and service delivery. According to Cisco's projections, online digital video is expected to constitute approximately 82% of all internet traffic, with live video accounting for 13% of total video traffic. The shift from traditional broadcasting to on-demand viewing has reshaped content distribution strategies, with platforms increasingly focusing on personalized viewing experiences. This transformation has led to the emergence of diverse business models, including subscription-based, transactional, and advertising-supported services, each catering to different viewer preferences and consumption habits.

The industry has witnessed significant evolution in monetization strategies, with platforms adopting hybrid approaches to maximize revenue streams. Recent data indicates that U.S. audiences typically engage with upwards of seven video streaming platform services through both ad-supported and ad-free subscriptions, highlighting the market's maturity and consumers' willingness to maintain multiple service subscriptions. The advertising component has gained particular traction, with ad views increasing by 45% as viewers increasingly embrace ad-supported digital video content, demonstrating the viability of diverse revenue models in the streaming media ecosystem.

Content strategy has emerged as a critical differentiator in the competitive landscape, with major platforms investing heavily in original programming and exclusive content rights. The market has seen a surge in regional and language-specific content production, particularly in emerging markets, to cater to diverse audience preferences. In 2023, significant developments included StarzPlay Arabia's launch of its first Arabic-language original series, Kaboos, highlighting the growing emphasis on localized content creation and the importance of cultural relevance in content strategy.

Technological innovation continues to drive market evolution, with platforms exploring new distribution channels and viewing experiences. In March 2023, Porsche announced the integration of streaming video capabilities in 56 countries, allowing vehicle owners to access live TV and subscription services like Disney+ and Amazon Prime through their cars. Similarly, Paramount+ introduced new mobile-only subscription plans in Mexico and Brazil in 2023, demonstrating the industry's adaptation to evolving consumer preferences and technological capabilities. These innovations in digital content delivery and platform accessibility reflect the industry's commitment to enhancing user experience and expanding market reach through technological advancement.

Video on Demand Market Trends

Developments in the Digital Video Landscape

Traditional video consumption patterns are experiencing a fundamental transformation as digital platforms revolutionize content delivery and consumption methods. According to Cisco's projections, online video is expected to constitute up to 82% of total internet traffic, with live video accounting for approximately 13% of all video traffic on the internet. This shift is driven by significant improvements in digital video technology, offering superior quality and efficient storage capabilities while capturing less space even for large amounts of data. Digital video provides enhanced benefits in terms of superior quality over analog video by reproducing images with greater accuracy to their original source, enabling content providers to deliver premium viewing experiences across multiple platforms.

The digital video landscape is witnessing substantial investments in original content production by streaming video services, reflecting the evolving demands of modern consumers. Streaming platforms are no longer content with being viewed merely as repositories for movies and TV shows, leading to direct competition with traditional TV and video industry players. Major streaming services are heavily investing in content production and licensing, with platforms like Netflix planning to invest USD 26 billion annually in content by 2028 to produce original digital streaming series. This trend is complemented by the increasing availability of diverse content suiting various demographic needs, improved bandwidth capabilities, and the growing monetization of video content through innovative advertising and subscription models.

Surge in Mobile-based Internet Users

The exponential growth in mobile data traffic is primarily driven by the proliferation of data-capable devices and high-bandwidth applications such as streaming media and gaming. According to the GSMA Report 2022, mobile internet penetration has reached a significant milestone with more than 55% of the global population now using mobile internet services. By the end of 2021, approximately 4.3 billion people were utilizing mobile internet, marking an increase of about 300 million users since the end of 2020. This growth is particularly notable in low- and middle-income nations (LMICs), where mobile internet usage has reached 50% of the population for the first time, indicating the expanding reach of internet video content to previously untapped markets.

The future of mobile internet usage appears even more promising, with Ericsson projecting 2.6 billion 5G subscriptions by 2025, covering up to 65% of the world's population and generating 45% of the world's total mobile data traffic. This projection is supported by the World Advertising Research Centre (WARC) report, which anticipates over 1.3 billion people accessing the internet via smartphones and PCs by 2025. The surge in mobile internet users is further accelerated by operators' increasing adoption of 5G networks, attractive data plans offered by service providers, and millennials' changing video viewing habits. The continuous integration of various content across mobile devices with high-speed internet has enabled users to watch content anywhere and anytime, making instant satisfaction a powerful force in the consumer world.

Segment Analysis: By Business Model

Subscription Video-on-Demand (SVOD) Segment in Video-on-Demand Market

The Subscription Video-on-Demand (SVOD) segment has emerged as the dominant force in the global video on demand market, commanding approximately 85% market share in 2024, while also maintaining the fastest growth trajectory with a projected growth rate of nearly 11% through 2029. This segment's supremacy is driven by major streaming platform providers like Netflix, Amazon Prime Video, and Disney+, who continue to invest heavily in original content production and licensing agreements. The SVOD model has gained significant traction due to its consumer-friendly approach, offering unlimited access to vast content libraries for a fixed recurring fee. The segment's growth is further propelled by increasing internet penetration, rising smartphone adoption, and changing consumer preferences towards on-demand entertainment. Leading SVOD providers are also expanding their service offerings through innovative features such as multiple user profiles, offline viewing capabilities, and AI-powered content recommendations, while simultaneously exploring new market opportunities in emerging economies.

Remaining Segments in Video-on-Demand Market

The Transactional Video-on-Demand (TVOD) and other business models represent important complementary segments in the video on demand ecosystem. The TVOD segment serves consumers who prefer pay-per-view options for accessing premium content, particularly new movie releases and special events, without committing to monthly subscriptions. This model is particularly popular among occasional viewers and those seeking early access to theatrical releases. Other business models, including advertising-based video-on-demand (AVOD) services, are gaining traction by offering free content supported by advertisements, thereby catering to price-sensitive consumers. These segments play a crucial role in providing diverse monetization options for content providers while ensuring accessibility to different consumer segments with varying preferences and spending capabilities. The hybrid approach of combining multiple business models is becoming increasingly common as providers seek to maximize their market reach and revenue potential.

Video-on-Demand Market Geography Segment Analysis

Video-on-Demand Market in North America

The North American video on demand market, comprising the United States and Canada, continues to dominate the global landscape with approximately 42% market share in 2024. The region's leadership position is driven by high digital infrastructure maturity, widespread smartphone adoption, and advanced 5G network implementation. The flexibility, comfort, and content personalization capabilities have largely driven consumer adoption of video on demand services in this region. The market is characterized by robust competition among major streaming platforms, with providers continuously innovating their content offerings and user experience. Consumer preferences in the region increasingly favor subscription-based models, particularly for premium content and original productions. The transition from traditional cable TV to streaming services continues to accelerate, supported by high-speed internet penetration and growing consumer comfort with digital payment systems. The region's market dynamics are further shaped by the strong presence of major content producers and technology companies, fostering an environment of continuous innovation and service improvement.

Video-on-Demand Market in Europe

The European video on demand market has demonstrated robust growth, experiencing approximately 10% annual growth from 2019 to 2024. The market's evolution is characterized by diverse consumer preferences across different countries, with particularly strong adoption in markets like Germany, France, and the United Kingdom. The region's regulatory framework, particularly regarding content quotas and data protection, has shaped unique market dynamics compared to other regions. Major streaming platforms have adapted their strategies to meet local content requirements while maintaining competitive pricing structures. The market has witnessed significant transformation in viewing habits, with traditional broadcasters increasingly pivoting towards hybrid models that combine linear TV with streaming services. Consumer behavior in the region shows a strong preference for local content alongside international productions, driving platforms to invest in region-specific content creation. The market's growth is further supported by improving digital infrastructure and increasing smart TV penetration across both established and emerging European markets.

Video-on-Demand Market in Asia-Pacific

The Asia-Pacific video on demand market is positioned for exceptional growth, with projections indicating approximately 12% annual growth from 2024 to 2029. The region's market is characterized by its vast diversity in terms of consumer preferences, digital infrastructure development, and pricing sensitivity across different countries. China, India, and Japan emerge as key growth drivers, each with unique market characteristics and consumer behaviors. The market's evolution is shaped by increasing smartphone penetration, improving internet infrastructure, and growing disposable income in emerging economies. Local content production has become a crucial differentiator, with platforms investing heavily in region-specific programming to capture market share. The competitive landscape is marked by a mix of global streaming services giants and strong regional players, creating a dynamic market environment. Mobile-first consumption patterns, particularly in emerging markets, are driving innovations in content delivery and user experience design.

Video-on-Demand Market in Middle East and North Africa

The Middle East and North Africa video on demand market is experiencing significant transformation driven by rapid digital infrastructure development and changing consumer preferences. The region's market is characterized by unique viewing patterns, with a strong preference for both local Arabic content and international programming. The United Arab Emirates and Saudi Arabia lead the region's adoption of streaming services, supported by high smartphone penetration and advanced telecommunications infrastructure. The competitive landscape is evolving with both international streaming platforms and regional services vying for market share through specialized content offerings. The market's growth is supported by increasing investment in local content production and the development of region-specific streaming platforms. Consumer behavior shows a strong preference for mobile viewing, driving platforms to optimize their services for smartphone consumption. The region's young, digitally-savvy population continues to drive market expansion and innovation in content delivery.

Video-on-Demand Market in Rest of the World

The Rest of the World video on demand market, encompassing Latin America, South Africa, and other regions, presents diverse growth opportunities shaped by varying levels of digital infrastructure development and consumer preferences. Brazil emerges as a key market in Latin America, with streaming platforms adapting their strategies to local market conditions and consumer preferences. The market is characterized by increasing investment in local content production and the development of region-specific pricing strategies to drive adoption. Mobile-first consumption patterns are particularly prominent in these regions, influencing platform development and content delivery strategies. The competitive landscape is evolving with both global and regional players introducing innovative business models to capture market share. Consumer behavior shows increasing acceptance of digital payment systems and subscription-based services. The market's development is supported by improving internet infrastructure and growing smartphone penetration across these regions.