Video Streaming Market to Grow at 20.36% CAGR by 2027: Technavio
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The video streaming market is rapidly growing and is becoming an integral part of the entertainment industry. Consumers are increasingly turning to streaming services to access their favourite TV shows, movies, and other video content. In response to this trend, companies are investing heavily in the development of new streaming platforms and services to meet the growing demand.
According to a recent market research report by Technavio, the video streaming market is expected to experience significant growth over the coming years. The report estimates that the market will accelerate at a CAGR of 20.36% and register an incremental increase of USD 310.44 billion during the forecast period 2023-2027. This growth is driven by the high demand for encoders to support multiple broadcasting formats, rising live-streamed content, and technological advances.
It’s worth noting that the video streaming market is not the only one experiencing growth, other industries such as the audio-video-on-demand and video games market are also predicted to grow, with estimations of audio-video-on-demand market size to increase by USD 165.39 billion from 2021 to 2026, and the video game market size to grow by USD 73.62 billion at a CAGR of 7.59%. But it’s clear that streaming represents the biggest growth sector in the entertainment space now.
This article aims to provide an overview of the global video streaming market, including its size and growth, key players, market dynamics, and future outlook. By understanding the current state of the market and its future trajectory, companies, and consumers can make informed decisions about how to navigate this rapidly evolving industry.
Global Market
North America is expected to account for 35% of the growth of the global market over the forecast period. The development of the market in the region is attributed to factors such as the rapid proliferation of streaming services that operate in the cloud, the high average disposable income of the population in the region, and the number of investments in opening new video streaming platforms.
APAC, Europe, South America, the Middle East, and Africa are also expected to see growth in the video streaming market, but at a lesser rate than in North America.
Factors such as the increasing adoption of streaming services, rising disposable income, and the growing popularity of OTT platforms are expected to drive growth in these regions.
Key Players and Competitive Landscape
The video streaming market is highly competitive, with several major players operating in the industry. These include companies such as AgileContent SA, Akamai Technologies Inc., Alphabet Inc., Amazon.com Inc., Apple Inc., Brightcove Inc., Cisco Systems Inc., Dacast Inc., and Haivision Systems Inc.
These companies have adopted various strategies to stay competitive in the market, such as new product launches, partnerships, and acquisitions.
For example,
- AgileContent SA offers video streaming services such as a management suite, delivery suite, and adtech suite.
- Akamai Technologies Inc. offers video streaming services for iOS and Android platforms.
- Alphabet Inc. offers video streaming services under the subsidiary Google LLC.
- Amazon.com Inc. offers video streaming services such as Prime Video.
- Apple Inc. offers video streaming services for Mac, iPad, and iPhone.
The market is also witnessing an increase in new market entrants, with companies entering the market with innovative solutions and technologies. Additionally, there have been several mergers and acquisitions in the market, which is expected to increase the competitiveness of the market.
These new market players and mergers/acquisitions will also bring new challenges to the established companies, and they will have to come up with new strategies to maintain their market share and stay competitive.
The intense competition in the market is expected to lead to the development of new and advanced products and services, which will benefit the end-users in the form of improved experience and more options to choose from. Although they probably said that about the 24h news cycle that led to a handful of companies controlling the entire ecosystem by the 2010s. Hey ho!
Market Dynamics
The market is segmented based on different factors such as type, deployment, and geography. The type segment is further divided into live and non-linear.
- The live segment includes live-streaming of events, sports, and other programming.
- The non-linear segment includes video-on-demand, catch-up TV and other services.
- The deployment segment is segmented into cloud and on-premises.
- The cloud segment includes services that are delivered and accessed over the internet.
- The on-premises segment includes services that are delivered and accessed over a private network.
Market split
The live segment accounted for the largest share of the market in 2022, and it is expected to continue to grow at a steady rate over the forecast period. The non-linear segment is also expected to grow over the forecast period, driven by increasing demand for on-demand video services.
The cloud segment is expected to see the highest growth among the deployment segments, driven by factors such as scalability, cost-effectiveness, and ease of deployment.
Evolution
The live segment is expected to continue to grow as more and more events, sports, and other programming are streamed live online. The non-linear segment will continue to grow, driven by the increasing demand for on-demand video services.
The cloud segment is expected to see the highest growth among the deployment segments, driven by factors such as scalability, cost-effectiveness, and ease of deployment. Companies in the market are expected to continue to invest in these segments to meet the growing demand and stay competitive.
Market Dynamics
The market is driven by several factors such as high demand for encoders to support multiple broadcasting formats, rising live-streamed content, and technological advances. The high demand for encoders is driven by the need to support multiple broadcasting formats such as 4K, 8K, and others.
The rising live-streamed content is driven by the increasing popularity of live-streaming events and sports. Technological advances such as the increasing adoption of cloud-based services, advancements in video compression technology, and others are also driving the growth of the market.
However, the market growth is hindered by an increase in cases of cyberattacks. Cyberattacks such as hacking, piracy, and others can damage the reputation of the companies, lead to financial losses, and result in the loss of customers.
The COVID-19 pandemic has had a significant impact on the market, with many people staying at home and relying on streaming services for entertainment. This has led to a surge in demand for streaming services, and companies have seen an increase in the number of subscribers and revenue. The pandemic has also accelerated the shift towards streaming services, as more and more people are opting for streaming services over traditional TV and cable services.
Future Outlook
The video streaming market is expected to continue to experience significant growth in the coming years; however, there are some potential challenges and obstacles that may arise in the future. These include increasing competition from new market entrants, rising costs of content production, and the need to adapt to new technologies and consumer preferences. With the potential for an increase in cyberattacks, companies will need to invest in security measures to protect their platforms and customers’ data.
Predictions 🔮
The video streaming market is expected to continue to grow at a steady rate over the coming years, driven by increasing demand for streaming services and technological advancements.
The market is expected to continue to evolve, with new technologies such as 5G and VR/AR expected to have a significant impact on the market. Companies are also expected to invest in AI and machine learning to improve their services and personalize the content for their customers.
The growth of the video streaming market is expected to have a significant impact on companies and consumers. Companies will need to adapt to the changing market trends and invest in new technologies to stay competitive. They will also need to invest in security measures to protect their platforms and customers’ data.
Consumers will have access to a wider variety of content and services and will be able to access the content on multiple devices. As a result, they will have more options to choose from, and the overall experience of streaming is expected to improve.
Our Conclusion
The global video streaming market is expected to grow at a CAGR of 20.36% during the forecast period 2023-2027, with an incremental growth of USD 310.44 billion. The market is driven by high demand for encoders to support multiple broadcasting formats, rising live-streamed content, and technological advances.
North America is expected to account for 35% of the growth of the global market over the forecast period. However, the market growth is hindered by an increase in cases of cyberattacks. The market is also segmented into live and non-linear, cloud and on-premises, and different regions around the world.
The video streaming market is an integral part of the tech industry and has a significant impact on society as a whole. With the increasing popularity of streaming services, companies are investing in new technologies and services to meet the growing demand.
This is driving innovation in the industry and improving the overall experience for consumers. The market also has a significant impact on the entertainment industry, as more and more people are turning to streaming services for their entertainment needs.
Interested to learn more about streaming technology? See these industry websites for more info:
- Streaming Media: www.streamingmedia.com – Offers news, analysis, and education on streaming media technologies and business models.
- NAB Streaming: www.nabstreamingsummit.com – A website that covers the latest news and trends in the streaming industry, including video streaming, audio streaming, and live-streaming.
- Streaming Learning Center: www.streaminglearningcenter.com – A website that offers resources and tutorials on streaming media technologies and best practices.
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