Video Transcoding Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, China, Japan, UK, Mexico, India - Size and Forecast 2024-2028

Video Transcoding Market Size 2024-2028 

The video transcoding market size is forecast to increase by USD 1.69 billion and is estimated to grow at a CAGR of 13.21% between 2023 and 2028. The digital landscape is undergoing significant transformation with the surge in content generation and the increasing popularity of Over-The-Top (OTT) platforms. The rise of live streaming has further fueled this trend, providing audiences with real-time access to their favorite content. The number of online content creators continues to grow, offering a diverse range of programming to cater to various tastes and preferences. This shift towards digital consumption is revolutionizing the media industry, enabling greater accessibility, convenience, and personalization for viewers. Content creators, in turn, benefit from the vast reach and engagement opportunities offered by OTT platforms, fostering a symbiotic relationship between technology and creativity.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The Market is experiencing significant growth due to the increasing demand for OTT content on various devices. The market is driven by the proliferation of smart TVs, smartphones, and other multimedia mobile devices. Video transcoding plays a crucial role in ensuring compatibility and video quality for OTT content across different platforms. Video encoders are the backbone of video transcoding, converting video formats for streaming on various devices. Both hardware and software solutions are available in the market, with software-as-a-service solutions gaining popularity due to their flexibility and cost-effectiveness. Compatibility and video quality are the key factors influencing the market. Adaptive streaming and media asset management are essential features of video transcoding solutions, enabling seamless streaming on mobile devices and televisions. The telecommunication, IT and gaming, broadcasting, and content creator industries are major consumers of video transcoding solutions. The market is expected to continue its growth trajectory due to the increasing popularity of streaming services and the need for high-quality video content across various devices. Compression technology is a critical component of video transcoding, enabling efficient delivery of video content over the internet. The market for video transcoding is expected to remain dynamic, with ongoing advancements in technology and evolving consumer demands. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

Increased content generation and rise of OTT platforms is notably driving market growth. The Video Transcoding Market is experiencing significant growth due to the increasing demand for OTT content on various video displaying devices such as Smart TVs, smartphones, tablets, and multimedia mobile devices. Communications Service Providers (CSPs) and content publishers are leveraging video encoders for compressing digital video files to ensure cross-platform compatibility and optimal video quality for streaming services.

Moreover, the telecoms network landscape, particularly Long-Term Evolution (LTE), is facilitating the delivery of high-speed internet, enabling consumers to access high-quality video content on-demand. Software and hardware-based video transcoding solutions, as well as Software-as-a-Service (SaaS) offerings, are gaining popularity in the market. Thus, such factors are driving the growth of the market during the forecast period.

Significant Market Trends

Increasing adoption of AI-based video transcoding is the key trend in the market. The Market is experiencing significant growth due to the increasing adoption of smart TVs, smartphones, and Over-the-top (OTT) services. Video encoders are essential for converting OTT content into various formats suitable for multimedia mobile devices, tablets, and Telecoms network landscape. Both hardware and software solutions, including Software-as-a-service (SaaS), are utilized for video encoding.

Moreover, compatibility and video quality are critical factors in the Video Transcoding Market. With the proliferation of streaming services and high-speed internet, there is a demand for adaptive streaming and compression to ensure seamless video playback on multiple devices, including mobile devices, televisions, and PCs. Cloud services have become a popular choice for media asset management and video encoding. Thus, such trends will shape the growth of the market during the forecast period.

Major Market Challenge

Increasing use of open-source and free editing software is the major challenge that affects the growth of the market. The Video Transcoding Market is experiencing significant growth due to the increasing demand for OTT content on various devices such as Smart TVs, smartphones, tablets, and multimedia mobile devices.

Moreover, the telecoms network landscape, including Communications Service Providers (CSPs) and Long-Term Evolution (LTE), is driving the need for video transcoding solutions to ensure compatibility and video quality across various platforms. Content publishers and education sector organizations are adopting cloud-based media platforms and streaming services for delivering high-quality video content to individual consumers. Hence, the above factors will impede the growth of the market during the forecast period

Exculsive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Akamai Technologies Inc: The company offers video transcoding solution which streamlines live video streaming workflows by processing a single live stream to reach multiple devices and platforms.

The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Alphabet Inc.
• Amazon.com Inc.
• Bertelsmann SE and Co. KGaA
• Bianor Inc
• Brightcove Inc.
• CDNetworks Inc.
• Contus
• Harmonic Inc.
• Hewlett Packard Enterprise Co.
• Huawei Technologies Co. Ltd.
• Imagine Communications Corp.
• Muvi LLC
• Mux Inc. 
• Qencode Corp.
• Telestream LLC
• TV2Z
• VBrick
• Wilhelm Sihn jr. GmbH and Co. KG
• Wowza Media Systems LLC

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation

By Type 

The software based solution segment is estimated to witness significant growth during the forecast period. The Market is experiencing significant growth due to the increasing demand for OTT content on various devices such as Smart TVs, Smartphones, Tablets, and Multimedia mobile devices.

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The software based solution segment was the largest segment and valued at USD 838.50 million in 2018. With the expansion of Over-the-top services, there is a growing need for Video encoders to ensure compatibility and optimal video quality across various platforms. Communications Service Providers and Content publishers are adopting Video encoding solutions, whether hardware or software, to deliver high-quality OTT content to their subscribers. Hence, such factors are driving the market during the forecast period.

Regional Analysis

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North America is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The video transcoding market is witnessing significant growth due to the increasing demand from broadcasters, OTT platforms, content creators, and telecommunication companies in IT and gaming industries. Broadcasting organizations require transcoding to convert video formats for multiscreen delivery, while OTT platforms need it for content adaptation to various devices and networks. Hence, such factors are driving the market in North America during the forecast period.

Segment Overview

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Million " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type Outlook
  • Software based solution
  • Hardware based solution
• End-user Outlook
  • Media and entertainment
  • Others
• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst overview

The Market is witnessing significant growth due to the increasing demand for OTT content on various devices such as Smart TVs, Smartphones, and Tablets. Video encoders play a crucial role in converting digital video files into formats compatible with these devices, ensuring seamless streaming and display. The market is segmented into hardware, software, and Software-as-a-Service (SaaS) solutions. Hardware solutions offer high processing power, while software solutions provide flexibility and scalability. SaaS solutions enable cloud-based media platforms to offer transcoding services to individual users and Content Publishers. The Telecoms network landscape, including Communications Service Providers (CSPs), Long-Term Evolution (LTE), and High-speed internet, is driving the market's growth. Compatibility and video quality are key factors influencing the market's direction. Adaptive streaming and compression techniques ensure high-quality video content across multiple devices. Media Asset Management, Media and Entertainment, Education sector, and Streaming services are significant end-users. The market is also witnessing the integration of Artificial Intelligence, Big Data, and Virtual Reality, enhancing the user experience and opening new opportunities. In summary, the Video Transcoding Market is a dynamic and evolving landscape, driven by the proliferation of multimedia mobile devices, OTT services, and the need for cross-platform compatibility. Cloud services and On-Premise solutions cater to various business models and user requirements.

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What are the Key Data Covered in this Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market across North America, APAC, Europe, Middle East and Africa, and South America
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies