December 8, 2024

Advanced Video Coding Market is in Trends by Rising Demand of High Quality Video Content

The Advanced Video Coding (AVC) market comprises advanced video codecs for encoding and decoding video files in both lossless and lossy formats for high definition video playback. AVC helps in compressing videos into smaller file formats while maintaining high resolution and frame rates. It provides advanced compression techniques for storage and transmission of digital video content in streaming devices, set-top boxes, smart TVs, computers, tablets and smartphones.

The Global Advanced Video Coding Market is estimated to be valued at US$ 3.46 Bn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Advanced Video Coding market are Apple Inc., Cisco Systems Inc., Google LLC, Microsoft Corporation, Intel Corporation, NVIDIA Corporation, Amazon.com Inc., Sony Corporation, Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Broadcom Inc., Panasonic Corporation, Ericsson AB, ZTE Corporation, Qualcomm Incorporated. The growing demand for 4K and 8K Ultra HD video content is driving the need for advanced video compression technologies. Rising popularity of video streaming services and penetration of smart devices are fueling the consumption of high-quality video content thereby accelerating the adoption of AVC.

The continuous rise in video consumption across various OTT platforms and increased usage of social media applications for sharing videos has augmented the demand for advanced video codecs. As per insights, global internet video traffic will account for over 82% of all IP traffic by 2022, up from about 75% in 2020. This growing demand is encouraging key players to invest in developing more efficient AVC solutions for enhanced video experience.

The adoption of advanced video coding is expanding globally with increasing number of pay TV subscribers and smart device users worldwide. Market leaders are focusing on emerging economies of Asia Pacific and Middle East & Africa for further business expansion attributable to rising disposable income, fast adoption of streaming services and growing digitization.

Market Key Trends

Growing popularity of Virtual Reality (VR) and Augmented Reality (AR) is one of the key trends driving innovation in the Advanced Video Coding market. Application of AVC solutions helpsdeliver high resolution videosand minimize latency for seamless VR/AR experiences. Leading Players are investing in developing AVC integrated VR/AR headsets and associated applications.Intel Corporation for instance introduced new Xeon scalable processors with integrated AVC encoder/decoder specifically designed for data-intensive VR workloads. Additionally, integration of AVC with AI & ML techniques for intelligent video analytics is expected to open new growth avenues over the forecast period.

Porter’s Analysis
Threat of new entrants: High capital requirements for research & production facilities poses barriers for new companies.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternative solutions.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power as key inputs are available from multiple players.

Threat of new substitutes: Technology development in newer video coding solutions poses threat of substitution.

Competitive rivalry: Intense competition exists among incumbent players to gain leadership in product development and licensing of codecs.

North America accounts for the largest share of the advanced video coding market, followed by Europe and Asia Pacific. North America is considered the early adopter of new technologies and has a high focus on technical innovations. The penetration of over-the-top platforms and video streaming services has been higher in North America than other regions, propelling demand for advanced video coding solutions in the region.

The Advanced Video Coding Market  Asia Pacific region is expected to witness the fastest growth during the forecast period owing to rising disposable income, improving internet infrastructure, and increasing penetration of smart devices in densely populated countries like China and India. Widespread adoption of 4G and upcoming 5G network rollouts are boosting the consumption of multimedia content, thereby driving the need for efficient video compression standards.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it
Money Singh
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Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

Money Singh

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. 

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