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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 Overview:
Video transcoding refers to the process of converting video content from one format to another such as conversion of video files from high definition to standard definition or conversion of video encoding formats like AVI to MP4. It helps in delivering video content in the compatible format to various platforms and devices such as mobile devices, internet streaming, smart televisions etc. Transcoding enables delivery of video content across different bandwidth and networks while maintaining the quality and resolution. It also facilitates cross-platform delivery of videos and protects original video format.
Market key trends:
Rise in online video streaming services is a major trend in the video transcoding market Increasing number of consumers are preferring over-the-top (OTT) platforms such as Netflix, Amazon Prime and Hulu for streaming services which in turn is fuelling the demand for video transcoding solutions. As per estimates, over 65% of internet traffic is expected to be video by 2022. Video service providers require advanced video transcoding solutions to deliver videos smoothly across different devices and network conditions. This drives significant growth opportunities for vendors in the video transcoding market.
Porter’s Analysis
Threat of new entrants: Low startup costs and presence of intellectual property barriers make it difficult for new players to enter this market.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes but switching costs and dependence on suppliers provide some bargaining power to suppliers.
Bargaining power of suppliers: Technology providers and video platform developers have moderate to high bargaining power due to switching costs for buyers and dependence of buyers on suppliers.
Threat of new substitutes: threat of new substitutes is low as there are limited alternatives to video transcoding.
Competitive rivalry: High as the market is fragmented with presence of global as well as local players.
Key Takeaways
The global Video Transcoding market is expected to witness high growth, exhibiting CAGR of 15% over the forecast period, due to increasing demand for OTT platforms and growing internet penetration worldwide. The market size for Video Transcoding is estimated to reach US$ 1,600 Mn by 2023.
North America dominated the global market in 2023, accounting for around 35% of the overall share, owing to high adoption of streaming services. Asia Pacific is expected to witness the fastest growth during the forecast period owing to growing media and entertainment industry in the region coupled with increasing internet and smartphone users.
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. The market is highly fragmented in nature with presence of both global as well as regional players.The key players are focused on partnerships and acquisitions to expand their global presence and gain higher market shares.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
