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The advanced video coding (AVC) market is estimated to witness significant growth over the forecast period. AVC, also known as H.264, is a video compression standard capable of delivering higher quality video content at lower bitrates compared to its predecessors. AVC compresses video efficiently to reduce bandwidth requirements for delivering high-definition images, and provides flexibility to support a wide range of network environments and customer equipment.
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 from 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.
The key opportunities in the AVC market include rising focus on consumer viewing experiences, transition to IP-based video delivery infrastructure, and growing demand for high-quality videos across various verticals including entertainment, healthcare, and surveillance.
The global AVC market is expanding rapidly with growing adoption across regions including North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. Rapid technological advancements and decreasing costs of equipment are encouraging nationwide AVC deployments for various applications.
Market drivers
The advanced video coding market is expected to witness high growth driven by the increasing demand for high-quality video contents. The growing popularity of OTT video platforms and demand for efficient video compression solutions to deliver smooth viewing experiences on mobile devices are further fueling the adoption of AVC technology. Live streaming of 4K and higher resolution videos require advanced compression technologies like AVC to optimize bandwidth and storage requirements. Moreover, increasing investments by technology companies in video-enhanced applications including video conferencing, surveillance, and distance education are supporting the market growth over the forecast period.
PEST Analysis
Political: Increasing government regulations on video compression standards for streaming videos. Some countries have levied extra duties on video streamers affecting their business.
Economic: The growth of the digital economy and rise of online video streaming platforms are driving the growth of this market. However, inflation and economic uncertainties post-pandemic may hamper investments.
Social: Higher demand for OTT services and rise in usage of smart devices for video consumption are fueling the adoption of advanced video codecs. However, bandwidth constraints in developing nations remain a challenge.
Technological: Advancements in video coding algorithms, support for higher resolutions, and integration of AI/ML are improving video quality and experience. Growing focus on 5G and 6G networks will enhance video streaming capabilities.
Geographical Regions with High Market Concentration
North America dominates the global market in terms of value currently due to high penetration of OTT platforms and smart devices. Asia Pacific is projected to be the fastest growing regional market during the forecast period supported by developing countries ramping up their digital infrastructure and rising internet penetration. Countries like China, India, and Japan are increasingly adopting advanced video compression technologies.
Fastest Growing Geographical Region
Asia Pacific region is poised to be the fastest growing geographical market for advanced video coding during the forecast period. Rapid digitization, rising middle-class population with higher disposable incomes, and growing focus of governments to strengthen telecom and digital infrastructure will facilitate the growth of digital media consumption including video streaming. Proliferation of affordable smartphones and low-cost data plans are also making online video more accessible in the region driving the need for advanced video codecs. Countries like China, India, Japan, and South Korea are anticipated to be at the forefront of this growth and fuel significant market opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
