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Advanced Video Coding (AVC), also widely known as H.264, is a video compression standard that offers higher quality video at lower bit rates as compared to its predecessor standards. AVC is widely used for recording, compression, and distribution of video content including TV broadcasts, Blu-ray discs, internet streaming, and computer and smartphone video telephony. It support various video formats including 4K and 8K. AVC helps broadcasters and service providers to deliver high quality video experience across devices using lesser bandwidth.
The 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, as highlighted in a new report published by Coherent Market Insights
Market Overview:
Advanced Video Coding (AVC), also widely known as H.264, is a video compression standard that offers higher quality video at lower bit rates as compared to its predecessor standards. AVC is widely used for recording, compression, and distribution of video content including TV broadcasts, Blu-ray discs, internet streaming, and computer and smartphone video telephony. It support various video formats including 4K and 8K. AVC helps broadcasters and service providers to deliver high quality video experience across devices using lesser bandwidth.
Market Dynamics:
The growing adoption of video streaming services across the world driven by increasing internet penetration is a major driver growth of the AVC market. According to Coherent Market Insights estimations, the global over-the-top (OTT) video streaming market was valued at over US$ 52 billion in 2022 and is expected to grow at 14.6% CAGR during the forecast period. The rising demand for high quality video streaming experience along with affordability for high bandwidth consumption is prompting broadcasters and service providers to offer 4K and 8K video formats which is further driving the need for efficient video compression technologies like AVC. Additionally, increasing number of smart connected devices such as smart TVs, phones, laptops, and gaming consoles which are acting as endpoints for video consumption is also contributing to the market growth.
Segment Analysis
The global advanced video coding (AVC) market is dominated by the consumer electronics segment. This segment accounts for over 40% of the total market share owing to high demand for AVC compressed videos in devices such as smartphones, tablets, TVs, laptops, cameras, and other consumer electronic appliances. AVC helps in smooth streaming of HD videos over bandwidth constrained networks and storage of large volume videos in smaller memory space of consumer electronic devices.
PEST Analysis
Political: AVC compression standards aid transmission of videos over bandwidth constrained telecom networks set up under government policies. This encourages growth.
Economic: Cost savings from using efficient AVC codecs for storage and transmission of HD videos results in greater economic benefit. This boosts market opportunities.
Social: Rising popularity of video streaming among consumers is driving demand for high quality video experiences supported by AVC standards.
Technological: Continuous technological advances such as integration of more powerful processors and larger storage capacities in devices are enhancing capabilities to handle AVC compressed videos.
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, and Qualcomm Incorporated. Technology giants like Apple, Google, and Microsoft are investing heavily in developing newer video compression technologies through partnerships and acquisitions.
Key Takeaways
The global advanced video coding (AVC) market size was valued at US$ 3.46 Bn in 2023 and is expected to reach US$ 6.32 Bn by 2030, expanding at a CAGR of 4.1% during the forecast period. Rapid growth in video streaming, especially over-the-top (OTT) entertainment platforms, is a major driver for increased adoption of advanced video codecs to ensure high resolution, low latency video delivery.
The Asia Pacific region dominated the global AVC market in 2023 with a share of around 35%, led by countries such as China, India, and Japan. Presence of large consumer bases and high speed telecom network infrastructures have boosted video consumption in the region.
*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.
