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Video Encoders: A Global Strategic Business Report

Global video encoders market: $1 billion industry forecast by 2018

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2014-01-29 08:04:04 - Video Encoders: A Global Strategic Business Report - a new market research report on

Global video encoders market is projected to reach US$1 billion by 2018, driven by the rising demand for digital TV services, SD to HD transition, and the launch of advanced encoding formats.

Video entertainment market continues to be transformed with the steady shift from analog to digital format and the growing significance of online medium in content distribution. Expanding network bandwidth, availability of more digital content and devices such as HDTVs, rising popularity of mobile devices such as smartphones and tablets, are helping accelerate this transformation. With this shift, consumers are increasingly seeking access to high quality digital video content that can be availed in multiple formats, from any location and at any time.

As the quality of video streamed is part



dependent on the video encoding process as well as the amount of bandwidth required to watch the video, demand for encoding solutions is rising. Globally, digitization trend that aims to improve quality of video and broadcast services is a major growth driver for video encoders market. Advancements in video CODECs (compression and decompression) have been the key foundations for the delivery of digital video over multiple media applications (broadcast, cable, satellite, IPTV and others). The growing prominence of OTT, smart TV, online music and video content as well as home connected networks in digital TV services and digital STBs has furthered enhanced the demand for encoders. Advanced encoding solutions are finding favor in view of the growing demand for HD channels and VOD services. Increasing adoption of AVC and other advanced compression formats across various countries is also driving demand for encoding solutions.

Europe represents the largest market for video encoders, worldwide. In developed economies such as Europe and North America, demand for video encoders is saturated, as the digital transition process has been completed in most of the countries. As a result, growth in the market is shifting towards emerging countries that are witnessing relatively fast-paced economic development. In the upcoming years, Asia-Pacific and Latin American markets are expected to drive growth in the global video encoders market. Rising income levels, digitization mandates, increasing penetration of mobile devices are all expected to fuel demand for video encoders in emerging markets.

Broadcast & Cable TV represents the largest end-use application in the global video encoders market. Growth in this segment is driven by the implementation of government regulations related to the digitization of TV content, along with measures such as quality of streaming content and number of subscriber base. In addition, continued migration towards efficient compression engines and growth in HD channels are forecast to drive growth in the sector. IPTV with a CAGR of 5.9% over the analysis period, represents the fastest growing end-use application segment. The IPTV segment is expected to grow significantly in the coming years driven by its ability to enable viewing of any content desired by consumers, which is not the case in terrestrial, satellite or cable services. In the IPTV segment, video encoders enable delivery of high-quality streaming video at low bitrates over the Internet. Global Industry Analysts ©

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