With the advances in technology, the demand for high-quality video content has increased exponentially. To make sure that videos are delivered in the best possible quality, different types of CODECs are used to compress and decompress digital streams. In this article, we will explore the various types of Video CODECs available in the market today, their applications, and their impact on video production.
Drivers of the Video CODECs Market
The drivers of the Video CODECs Market are:
1. Increasing demand for high-quality online video streaming: The increasing demand for high-quality online video streaming has been a major driver of the Video CODECs Market. Consumers today want access to HD (high definition) and Ultra HD (4K) content, which require advanced compression technologies like H.265 and VP9. As internet speeds increase, people are increasingly relying on streaming services such as Netflix, Hulu, and YouTube to watch their favourite shows and movies. This trend is expected to continue in the future, driving up demand for better video codecs that can deliver higher quality with lower bandwidth usage.
2. Growing adoption of IP video surveillance systems: video Surveillance systems are becoming an integral part of business operations for many companies in order to keep track of employees and customer activities. As these systems migrate from analogue to digital formats, there is an increased need for advanced Video CODECs to enable efficient transmission over IP networks such as Ethernet or Wi-Fi connections. This is driving the growth of the Video CODECs market as businesses look to adopt newer technologies that offer superior performance and efficiency.
Advantages of the Video CODECs Market
Some of the advantages of the Video CODECs Market are as follows:
1. Increased Efficiency: Video CODECs can drastically reduce the size of video files by compressing them to a fraction of their original size. This allows for faster streaming and downloading times, as well as easier sharing between different devices such as computers, phones, and tablets.
2. Improved Quality: With the advances in technology, Video CODECs are able to provide higher-quality video with increased resolution and frame rates. This provides viewers with an enhanced viewing experience that is usually only seen on high-end TVs or movie theatres.
3. Cost Savings: Since Video CODECs can significantly reduce the amount of data needed to transmit a video file, companies can save money on bandwidth costs when streaming or downloading content from their servers. This allows businesses to focus on creating better content instead of worrying about expensive server costs.
Market value and CAGR of the Video CODECs Market (2022-2032)
The market value and CAGR of the Video CODECs Market are expected to reach USD 7.45 billion by 2032, growing at a CAGR of 9.8% from 2022 to 2032.
.png "The Global Video CODECs Market (USD Billion)")
The market is driven by the increasing adoption of streaming services offered by various vendors, the proliferation of smartphones, and advancements in video content creation and delivery technologies.
Challenges of the Video CODECs Market
Some of the challenges of the Video CODECs Market are as follows:
1. Increasing Video Quality Requirements: With the increasing demand for higher resolution and more realistic-looking videos, the video codecs market needs to keep up with these changing requirements while also staying competitive.
2. Growing Competition: As more companies enter the market and develop their own video codecs, competition is becoming increasingly fierce in this space.
3. Adoption of Open-Source Solutions: Open-source solutions are becoming increasingly popular in the video codecs market as they provide a cost-effective solution for many users. This can be challenging for companies that rely on proprietary solutions to maintain their competitive edge.
Key Players in the Video CODECs Market
Some of the key players in the Video CODECs Market are Apple Inc., Cisco Systems, Inc., DivX, LLC., Google LLC., Hai Vision Systems Inc., Huawei Technologies Co. Ltd., Intuitive Ltd., Microsoft Corporation, Nvidia Corporation, Qualcomm Technologies, Inc., SAMSUNG Electronics Co. Ltd. and Sony Corporation.
Market analysis into type, application, end user and region of Video CODECs Market
The most demanded product of the Video CODECs Market is expected to be AVC/H.264, as it is widely used in many video applications such as video conferencing, streaming videos, and live broadcasting. The application segment of the Video CODECs Market is mainly divided into three parts: Broadcasting and TV Streaming, Surveillance, and Video Conferencing.
The broadcast and TV streaming segment is expected to dominate the market, due to the rising demand for high-quality streaming services from consumers coupled with increasing investments in broadcasting infrastructure. This segment will be further driven by the growth of Over-the-Top (OTT) services and the growing adoption of advanced technologies such as cloud computing in the broadcasting & streaming industry.
The surveillance segment is also expected to grow significantly over the forecast period, owing to increasing investment in security & surveillance systems by government agencies and other private organizations across the world. Furthermore, new developments in analytics & software development for surveillance are also driving the growth of this market segment. The video conferencing segment holds a significant portion of the market share and is projected to grow at a steady pace during the forecast period due to the rising demand from corporate organizations for remote work capabilities during pandemic situations.
In terms of end users, commercial end users are expected to dominate the market, with the growth of small & medium-sized enterprises (SMEs) and large corporate organizations. The demand for video CODECs from the commercial segment is expected to remain strong due to the growing need for streaming services, remote working capabilities, and security & surveillance systems.
North America is expected to dominate the global market share over the forecast period owing to increasing investments in broadcasting infrastructure and rising demand for high-quality streaming services. Moreover, Europe is also anticipated to be a major contributor to the market share due to increasing investments in security & surveillance systems by private as well as public agencies in this region. The Asia Pacific region is also anticipated to exhibit rapid growth over the forecast period due to increasing demand from countries such as China and India for video conferencing solutions along with surging online streaming activities.
Impact of Covid-19 on the Video CODECs Market
The outbreak of Covid-19 has had a significant impact on the video CODECs market. The demand for video CODECs has been affected by the slowdown in the global economy and the decrease in spending on non-essential products and services. The broadcast and surveillance applications are expected to be the most affected by the Covid-19 pandemic.
Key developments in the Video CODECs Market
In January 2021, the Video CODECs market saw the introduction of several new technologies and products.
1. Intel launched its new Iris Xe Max GPU with a built-in video encoding engine that supports AV1, HEVC, and VP9 codecs. This enables Intel-based laptops to decode 4K resolution video at 60 frames per second (FPS).
2. NVIDIA announced the launch of their Ampere architecture-based RTX 30 series GPUs with hardware encoding support for AV1, HEVC, and VP9 formats. The GPUs enable 8K resolution video decoding up to 120fps.
Video CODECs Market Scope :
| Metrics | Details |
| Base Year | 2023 |
| Historic Data | 2018-2022 |
| Forecast Period | 2024-2032 |
| Study Period | 2018-2032 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2032 | USD 7.45 Billion |
| Growth Rate | CAGR of 9.8 % during 2022-2032 |
| Segment Covered | by Type, By Application, End Users, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Apple Inc., Cisco Systems, Inc., DivX, LLC., Google LLC., Hai Vision Systems Inc., Huawei Technologies Co. Ltd., Intuitive Ltd., Microsoft Corporation, Nvidia Corporation, Qualcomm Technologies, Inc., SAMSUNG Electronics Co. Ltd. and Sony Corporation |
Key Segment of Video CODECs Market
By Type Overview (USD Billion)
• H.264 & H.265
• HEVC
• Others
By Application Overview (USD Billion)
• Broadcast
• Surveillance
• Others
By End-User Overview (USD Billion)
• Manufacturing companies
By Region Overview (USD Billion)
North America
• USA
• Canada
Asia Pacific
• China
• India
• Japan
• Rest of Asia Pacific
South America
• Mexico
• Brazil
• Rest of North America
Europe
• Germany
• France
• UK
• Rest of Europe
Middle East and Africa
Frequently Asked Questions (FAQ) :
Video CODECs Market is projected to reach USD 7.45 billion by 2032, growing at a CAGR of 9.8%