Video transcoding is the process of converting a video file from one format to another. It involves processing digital video files so that they can be viewed across various devices like smartphones, tablets, televisions etc. With the growth in online streaming platforms and increasing internet connectivity, demand for on-demand video content has increased significantly. Services like Netflix, Amazon Prime Video, Disney+ Hotstar and other OTT platforms offer wide variety of video content that can be accessed on-the-go through mobile and smart TV apps. This has propelled the demand for transcoding video files into various formats that are optimized for different screen sizes and bandwidth capabilities. The global video transcoding market is estimated to be valued at US$ 1,600 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing demand for on-demand video streaming: As mentioned in the heading, growing popularity of over-the-top (OTT) video streaming platforms and increasing internet penetration is a major driver fueling the video transcoding market. Various streaming platforms require videos to be transcoded into multiple formats for smooth playback on diverse range of devices. This large scale conversion of files is propelling the demand for video transcoding solutions.
Adoption of cloud-based transcoding services: With the capability to handle huge volumes of video data, cloud-based transcoding services are gaining increased acceptance from media and entertainment companies. The cloud infrastructure allows on-demand provisioning of transcoding resources and economies of scale. It also offers benefits like access from anywhere, no upfront infrastructure costs and automatic scaling. Leading players in the market like Telestream, Amazon etc. offer cloud-based video transcoding services to cater to the burgeoning demand from OTT platforms.
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Segment Analysis
The video transcoding market can be segmented based on type, deployment, verticals, and regions. Based on type, the market is dominated by the live and near-live transcoding segment that accounts for around 60% of the overall market share. This segment is dominating as live streaming and video-on-demand platforms require content to be transcoded and delivered in multiple formats on multiple devices in real-time.
PEST Analysis
Political: Data privacy laws and regulations are being strengthened globally which are impacting how video platforms handle and process consumer data during transcoding.
Economic: Increasing internet penetration and adoption of smart devices are fueling the need for adaptive bitrate streaming and multi-format content delivery, driving investments in video transcoding infrastructure.
Social: Rising social media usage and time spent on video streaming platforms are increasing the demand for high-quality, easily accessible video content across different devices.
Technological: Advancements in encoding technologies like AI/ML, GPUs, and cloud computing are enabling higher quality and real-time transcoding of large volumes of videos. Transition to formats like HEVC is further promoting adoption of video transcoding solutions.
Key Takeaways
The global video transcoding market is expected to witness high growth over the forecast period led by increasing consumption of OTT video services on various devices.
Geographically, the North American region currently dominates the market owing to early adoption of advanced video technologies by media and entertainment industry players in the region. However, the Asia Pacific region is anticipated to be the fastest growing market during the forecast period with increasing investments by transcoding solution providers and hyper-scalers in the region.
Key players operating in the video transcoding market are Telestream, Brightcove Zencoder, Coconut, Qencode, Encoding, HaiVision Systems, Harris Broadcast, VBrick Systems, Anvato, Wowza Media, Akamai. These players are focused on developing capabilities for low latency, high-quality transcoding of 4K and 8K videos to gain market share. They are also expanding their transcoding-as-a-service offerings across public/private cloud infrastructures.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
