December 7, 2024
Ict

Advanced Video Coding (AVC) is Expected to be Flourished by Growing Demand for Rich Media Streaming Platforms

Advanced Video Coding (AVC), also known as H.264, is a block-oriented motion-compensation-based video compression standard that is capable of doubling or tripling compression efficiency compared with older standards like MPEG-2. AVC compresses digital video streams efficiently for various streaming applications over different platforms including web platforms and mobile devices. It aims to enable video playback requiring significantly lower data rates than earlier standards and supports resolutions up to 4K and beyond. The global advanced video coding (AVC) market is estimated to be valued at US$ 3.46 billion in 2024 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 Dynamics:

Growing demand for rich media streaming platforms: Increasing penetration of broadband services and faster internet connectivity has led to rising demand for high-resolution and high-quality video streaming content across different platforms such as TVs, OTT platforms, tablets, smartphones, and smart displays. This has propelled the demand for advanced video compression technologies like AVC that enable encoding and decoding of high-resolution video streams efficiently. Advanced video coding (AVC) compression standard supports resolutions up to 4K and higher and provides high compression performance making it widely adopted by content providers for delivering 4K and higher resolution videos over the internet.

Short-term impact of COVID-19 pandemic: The coronavirus outbreak forced people to remain indoors leading to tremendous growth in internet video streaming as individuals sought home entertainment options. This drove short-term uptake of advanced video compression technologies in 2020 and 2021. However, market growth may witness intermittent challenges due to global supply chain and logistic disruptions caused by the pandemic during the forecast period.

Segment Analysis
The Advanced Video Coding (AVC) market is dominated by consumer electronics segment. Within consumer electronics, devices such as smartphones, tablets, laptops contribute more than 50% of the total AVC market share. This is because AVC is widely used in these devices for video recording and compression to reduce file sizes. The broadcasting industry is another major segment in the AVC market as it uses encoders and decoders heavily for transmitting content over cable, satellite, and IPTV networks.

PEST Analysis
Political: AVC market is positively impacted by government initiatives promoting digitalization. Developed economies are providing funds for installation of AVC encoders at broadcasting stations and network upgrades. However, changes in trade policies can disrupt supply chains.

Economic: Growth in disposable income is driving sales of consumer electronics using AVC. Countries with strong economic growth in Asia Pacific and Middle East are major revenue generators. Fluctuations in currency exchange rates can influence transnational contracts and pricing.

Social: Rising popularity of OTT media and digital entertainment is catalyzing demand for high quality video. Younger population is replacing legacy devices with AVC supported smartphones and tablets at a high frequency. This drives upgrades and new purchases.

Technological: Continued innovation in video compression techniques and increases in network speeds are expanding AVC applications. Adoption of 4G and upcoming 5G networks promote mobile viewing of AVC videos. Advancements in high resolution formats like 8K and 360-degree videos spur new product development cycles.

Key Takeaways
The global Advanced Video Coding (AVC) market is expected to witness high growth over the forecast period till 2030 driven by increasing demand for OTT content and proliferation of smart consumer devices. Rapid urbanization and internet penetration in developing economies of Asia Pacific presents significant opportunities. China, India, and southeast Asian countries are projected to be the fastest growing regional markets for AVC.

Regional analysis: The Asia Pacific region dominated over 30% of the AVC market share in 2023 led by countries such as China, Japan and South Korea. Increased investment in broadcasting and mobile network infrastructure coupled with large consumer base makes Asia Pacific an attractive regional market. North America and Western Europe are other major consuming regions attributed to high technology adoption and presence of leading players supplying AVC solutions globally.

Key players operating in the Advanced Video Coding (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. Apple and Google have shown aggressive investment into software and silicon integration to stay ahead of the curve for emerging video formats.

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, chemicals 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, chemicals and materials, defense and aerospace, consumer goods, etc. 

View all posts by Money Singh →