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Advanced Video Coding (AVC), also known as H.264, offers high-quality video compression standards and techniques that are widely used for recording, compression, and distribution of digital video content. AVC is the most commonly used format for the recording, compression, and distribution of video content including internet streaming, broadcasting, and DVD video. It allows high-quality, high-resolution video to be transmitted over limited-bandwidth connections or for applications where storage space is limited. The growing popularity of 4K and 8K ultra high definition video formats are driving greater demand for high-efficiency video compression standards like AVC to effectively store, transmit and encode high-quality video on various consumer devices and platforms. The global Advanced Video Coding (AVC) 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 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the advanced video coding market is the growth of over-the-top (OTT) media services. Major OTT players like Netflix, Amazon Prime Video, Disney+, Hulu etc mainly use advanced video coding to stream and deliver high definition content over the internet. As internet penetration increases globally along with rising consumption of online video content on mobile devices and smart TVs, there is a growing need for high-efficiency video compression solutions to effectively distribute high quality videos using limited bandwidth. This growing popularity of OTT video is expected to drive greater adoption of advanced video coding standards in the coming years.
Porter’s Analysis
Threat of new entrants: The threat of new entrants into the Advanced Video Coding (AVC) market is moderate. Established players have significant resources and economies of scale. However, technological development has lowered some barriers.
Bargaining power of buyers: The bargaining power of buyers is moderate to high. Many buyers have in-house capabilities and alternatives. Buyers can negotiate on price and demand additional services.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. While there are many component and technology suppliers, the industry is moving towards consolidation. Suppliers also have to consider dependencies on buyers.
Threat of new substitutes: The threat of substitutes is moderate. While newer video coding standards may emerge, the installed base creates compatibility issues. Short-term substitutes are limited.
Competitive rivalry: Competition in the AVC market is high due to the presence of technology giants. Players compete on technology leadership, product capabilities, and pricing.
Key Takeaways
The global Advanced Video Coding (AVC) market is expected to witness high growth over the forecast period 2023 to 2030.
Regional analysis: North America has been the largest region for the AVC market historically, driven by strong presence of technologies companies in the US. However, Asia Pacific is expected to surpass North America to become the fastest growing region, led by increasing demand from China, India, and other developing countries in the region.
Key players operating in the Advanced Video Coding (AVC) 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. NVIDIA Corporation, Intel Corporation and Broadcom Inc. lead the semiconductor market supplying key chipsets for video encoding and decoding. Apple Inc., Microsoft Corporation and Google LLC are among the largest players focussing on software development of their respective platforms utilising AVC standard.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
