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Advanced Video Coding (AVC), also known as H.264, is a video compression standard used for encoding high-definition video content. AVC enables efficient coding of digital video content and is widely used for various applications like over-the-top (OTT) video services, online video streaming, and video conferencing. It allows 4K and even 8K video to be transmitted over networks and consumed by end-users. AVC encoding solutions compress raw footage by efficiently removing redundant data without compromising on visual quality. This is used across media and entertainment industries for digital home video, broadcast television as well as IPTV applications.
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 Dynamics:
The growing needs of streaming 4K and 8K video content is one of the key drivers that is expected to flourished the Advanced Video Coding (AVC) market during the forecast period. 4K and 8K video consumes very high bandwidth, therefore AVC encoding solutions are used to compress these high-resolution videos and stream seamlessly over networks without pixelation and delays. Another driver that will propel the market growth is the increasing popularity of over-the-top (OTT) streaming services like Netflix, Amazon Prime Video, Disney+ Hotstar etc. These OTT platforms heavily rely on AVC encoding for compressing all their video content library consisting of movies, shows and live streaming of sports and events. This enables smooth streaming experience for billions of subscribers globally consuming videos over mobile applications and internet-connected devices.
Key players analysis
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 Inc. and Google LLC are the market leaders due to their presence across application segments and continuous investments incodec innovations.
Segment Analysis
The global Advanced Video Coding (AVC) market is dominated by the consumer electronics sub-segment. Over 60% of the AVC market demand comes from consumer electronics as many devices such as smartphones, smart TVs, cameras and others use AVC technology to encode and decode videos efficiently. AVC’s compression capabilities allows high resolution videos to be streamed smoothly on devices with low bandwidth connections as well as stored in devices with limited storage capacity.
PEST Analysis
Political: Governments around the world are promoting the adoption of advanced video technologies for surveillance and security applications. This is positively impacting the growth of AVC.
Economic: Rising disposable incomes are allowing more consumers to upgrade to premium devices that support new video standards like 4K and 8K. This increasing demand for high resolution content is driving the need for efficient video compression technologies like AVC.
Social: growing popularity of video streaming and social media platforms is fuelling the consumption of digital video content globally. As bandwidth limitations still persist in many regions, the need for video compression remains high.
Technological: Recent innovations have enhanced the compression ratio and efficiency of AVC further. Adaptive bitrate streaming and AI/ML techniques are now being used to optimize AVC for diverse bandwidth conditions.
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 (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.
North America region currently dominates the AVC market owing to early adoption of technologies and presence of key players in the region. USA captures over 40% share of the North America AVC market.
*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, chemicals and materials, defense and aerospace, consumer goods, etc.
