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Advanced Video Coding, also known as H.264 or MPEG-4 AVC, is one of the most widely used video coding standards and is driven by the increasing demand for high quality video content. Advanced Video Coding enables the delivery of high definition and ultra-high definition video content across various devices and platforms by significantly reducing the bandwidth and storage requirements for video, without compromising on the quality of the visual experience. It supports a variety of applications ranging from video conferencing, digital television, DVDs, Blu-ray discs, web streaming, video telephones, surveillance and storage technologies. With its high compression capabilities, Advanced Video Coding has enabled the proliferation of bandwidth and resource intensive services such as video on demand, over-the-top video services and IPTV.
The global Advanced Video Coding 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 Advanced Video Coding market is the integration of AI and machine learning capabilities. Major players in the market are focusing on developing video codecs that leverage computer vision and deep learning techniques to further enhance compression ratios. For instance, platforms are using techniques such as frame selection, object detection and tracking to better optimize the encoding process. This allows sending and receiving more relevant information while using lesser bandwidth. Such improvements are expected to fuel the demand for advanced video codecs from diverse applications including autonomous vehicles, surveillance, immersive media and more.
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. Technology companies are focused on developing advanced codecs for applications such as Ultra HD/4K/8K streaming and virtual reality.
Porter’s Analysis
Threat of new entrants: Low- The market requires high initial investments for R&D and infrastructure development, limiting new competition. Bargaining power of buyers: Medium- Large customers can negotiate better pricing, but standardized technologies limit alternatives.
Bargaining power of suppliers: Low- Industry dependent on few standardized encoding technologies and IP. Threat of new substitutes: Medium- Other newer video compression technologies can replace AVC over time, but AVC still dominant standard.
Competitive rivalry: High- Intense competition between Apple, Microsoft, Google and other tech giants to drive innovation and market share in video delivery platforms.
Key Takeaways
The global Advanced Video Coding Market is expected to witness high growth over the forecast period of 2023 to 2030. The global Advanced Video Coding 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.
North America currently dominates the AVC market owing to high penetration of video streaming platforms. Technological advancements and increasing adoption of OTT video platforms are fueling adoption of AVC encoding across the region.
Europe is also a major market for AVC owing to growing media and entertainment industry in countries like the UK, Germany, and France. Asia Pacific is expected to be the fastest growing region on back of rising internet penetration, increasing availability of affordable smartphones, and growing 5G infrastructure particularly in China and India.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
