June 18, 2024

Advanced Video Coding (AVC) Market is Estimated to Witness High Growth Owing to Rising Adoption in Video Streaming Applications


The advanced video coding (AVC) market comprises products such as encoders, decoders, transcoders, and prediction and estimation methods. AVC offers high video compression capabilities and supports all currently available video formats and resolutions. It supports high definition video formats and resolutions up to 1080p and is widely adopted in OTT video streaming platforms, IPTV services, and Blu-ray disc applications. The growing demand for streaming high-quality videos over bandwidth-constrained mobile networks and increasing internet penetration are fueling the need for highly efficient video codecs and amplifying the adoption of AVC technology.

The Global Advanced Video Coding 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 2023 to 2030.

Key Takeaways

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. Key players are focusing on developing advanced AVC encoders and decoders to support 8K videos and higher color depth formats. They are also investing in AVC research to enhance coding efficiency further.

Key opportunities in the AVC market include increasing live video streaming and adoption of immersive media formats like 360-degree videos. AVC is well-suited to support these emerging applications due to its high compression ratio, low latency, and hardware acceleration compatibility. The market is also witnessing rapid global expansion mainly driven by growing internet penetration in developing regions, rollout of 5G networks, and rising adoption of OTT services.

Market drivers

The key driver boosting the advanced video coding market is the increasing adoption in mobile video applications. Over-the-top video and Internet Protocol Television services are seeing exponential growth in usage on smartphones and tablets. As mobile networks are bandwidth-constrained, service providers rely on highly efficient codecs like AVC to deliver high-quality video streams on mobile. Further, live video broadcasting from remote locations using cellular networks also drives the need for AVC technology. The ability of AVC to compress videos to smaller sizes without compromising quality makes it well-suited for mobile usage.

PEST Analysis

Political: The government regulations related to licensing, certification and standards related to AVCs have increased compliance requirements for market players.

Economic: Factors affecting consumer disposable income and spending like inflation and economic growth impact the sales of devices using AVC technology.

Social: Increased internet usage, streaming and demand for high resolution videos are key social trends fueling the adoption of advanced video compression standards.

Technological: Developments in coding techniques, processor capabilities and interconnect technologies enhance the efficiency and processing power required to deploy advanced video compression solutions with higher resolution and frame rates. Ultra HD, 8K videos place greater requirements on compression algorithm performance.

Geographical regions of Concentration

The North America region accounts for the largest share of the overall AVC market in terms of value currently. This is attributable to high consumer spending and technology adoption rates in countries like the United States. The presence of leading technology companies driving AVC standards as well as demand for OTT video services contribute to North America’s large market share.

Fastest growing region

The Advanced Video Coding Market  Asia Pacific region is expected to be the fastest growing regional market for AVC over the forecast period. This is due to rising economic prosperity in countries such as China and India enabling greater consumer spending on video enabled devices. Growing internet penetration, digital transformation of industries and increasing consumption of digital media are expected to accelerate AVC adoption in the Asia Pacific region.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it