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Advanced Video Coding (AVC), also known as H.264, is a video compression standard that enables high quality video to be transmitted over Internet and cable networks. It allows for better compression of video files without significant loss of quality, thereby saving storage space and bandwidth. AVC compresses digital video much more efficiently compared to prior standards, enabling high definition video streaming and video calling on mobile networks. As video consumption continues to grow exponentially with adoption of OTT media platforms and increasing smartphone use, efficient video compression solutions like AVC are becoming increasingly vital.
The global Advanced Video Coding (AVC) Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the AVC market is the growing popularity of ultra-high definition (UHD) video formats. As 4K and 8K televisions gain mass adoption, there is a significant increase in resolution of digital video content. This has increased the need for more advanced video codecs that can compress these ultra-high resolution videos without compromising on quality. AVC/H.264 is continuously being upgraded to support higher resolutions while maintaining good compression ratios. Leading technology companies are investing in developing next generation codecs like HEVC/H.265 and VVC/H.266 to efficiently compress UHD and beyond UHD video content for streaming, broadcasting and archival storage. This evolving market landscape towards higher resolution digital videos is expected to drive significant demand for advanced video coding solutions in the forecast period.
Porter’s Analysis
Threat of new entrants: Low barrier to entry and high competition in AVC market makes threat of new entrants high. Existing players have strong hold over technology and market share.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated product. Buyers can easily switch to alternative solutions.
Bargaining power of suppliers: Suppliers have low bargaining power due to presence of many component suppliers and commoditization of components.
Threat of new substitutes: Threat of substitutes is high as newer video codecs like HEVC and VVC are gaining popularity.
Competitive rivalry: Intense competition exists among existing players to gain market share. Players differentiate through continuous technology innovation.
Key players operating in the AVC 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. These players are focusing on introducing advanced video compression technologies to enhance video quality and reduce bandwidth requirement.
Key Takeaways
The global Advanced Video Coding (AVC) market is expected to witness high growth, exhibiting CAGR of 4.1% over the forecast period 2023 to 2030, due to increasing usage of Internet-based video streaming services. The market size for 2023 is estimated to be US$ 3.46 Bn.
North America dominates the global AVC market owing to high penetration of smart devices and massive demand for high quality video content in the region. Asia Pacific is expected to be the fastest growing market for AVC due to rising video consumption, increasing mobile Internet users and growth of OTT platforms in the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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.
