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The video-on-demand (VOD) market size is forecast to increase by USD 309.7 billion at a CAGR of 20.77% between 2024 and 2028. The market is experiencing significant growth, driven by the increasing preference for cloud streaming services. This trend is fueled by the convenience and flexibility they offer, allowing viewers to access content at their own pace and on various devices. Additionally, strategies by vendors, such as partnerships with content providers and personalized recommendations, are enhancing the user experience and driving market growth. However, the availability of pirated video content on online platforms poses a major challenge for market players, requiring content protection measures and collaborative efforts between industry stakeholders. Overall, the VOD market is expected to continue its growth trajectory, driven by these trends and challenges.
The video-on-demand (VOD) market in the entertainment sector has seen significant growth in recent years, driven by monetization opportunities and audience engagement. Movies and TV shows are the primary content types consumed on VOD platforms, catering to viewer preferences and behavior. Content creators benefit from the flexibility and reach offered by VOD, allowing them to target various segments such as educational institutions, corporate environments, and individual viewers. However, challenges such as video content piracy, security, confidentiality, GDPR, and privacy laws necessitate innovative solutions. Technological advancements in VOD software and delivery systems enable providers to offer high-quality content with minimal latency and maximum security.
Strategic planning and investment in talent, equipment, and post-production processes are essential for content creators to stay competitive. The high cost of video content creation and the need for a large content library remain significant barriers to entry. Online education and e-learning are emerging areas of growth, offering a unique learning experience that caters to diverse viewer needs.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2017 - 2021 for the following segments.
The Smartphone and laptops segment is estimated to witness significant growth during the forecast period. The video-on-demand (VoD) market in the entertainment sector is witnessing significant growth due to monetization opportunities and increased audience engagement. VoD platforms are increasingly popular for streaming movies and TV shows, catering to viewer preferences and behavior. Technological advancements have enabled educational institutions and corporate environments to adopt VoD for online education and e-learning, enhancing the learning experience. However, challenges such as video content piracy, security, confidentiality, and adherence to privacy laws like GDPR require innovative solutions. High production costs, including talent, equipment, and post-production processes, necessitate strategic planning for content creators, production houses, distributors, and streaming platforms. The VoD market encompasses various verticals, including media and entertainment, education, and other industries.
OTT platforms are driving the market growth through the deployment and delivery of VoD software, providing a seamless process for consumers.
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The Smartphone and laptops segment accounted for USD 59.20 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 32% 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.
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Flexibility and ease of use are key drivers, enabling seamless customer experiences for viewers. Online streaming services now offer a wide array of content, including live streaming, AI-based platforms, and customized content suggestions. High-quality entertainment is a priority, with 3D titles and next-day TV programming becoming increasingly popular.
However, the VOD market faces complex regulatory frameworks, licensing requirements, and government regulations. Content piracy and unlawful downloading pose significant challenges for content owners and broadcasters. Digital storage solutions are crucial to accommodate the vast amounts of data required for high-definition content. Artificial intelligence (AI) and machine learning algorithms are essential for delivering personalized recommendations and ensuring high-quality streaming experiences. With the market growth rate expected to remain unchanged, the interests of audiences will continue to shape the evolution of VOD services. Oculus Go and Quest are prime examples of emerging technologies that will further enrich the VOD landscape.
Our video-on-demand market 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.
Mobile advertisements increasing the revenue of AVOD platforms are notably driving market growth. The Video-On-Demand (VoD) market is experiencing significant growth due to the increasing demand for cloud streaming services worldwide. Advanced wireless network technologies and telecommunication standards, including 3G, 4G, and 5G, facilitate the prevention of video and music asset piracy through cloud streaming. To monetize their offerings, VoD platforms employ a freemium business model, which converts free users into premium subscribers while ensuring sustainability. This strategy has led to an increase in audience engagement, with providers like Netflix, Hulu, and Disney Hotstar offering both free and paid subscription options for movies, TV shows, and educational content. In the entertainment sector, VoD platforms cater to viewer preferences and behavior, providing innovative solutions for educational institutions, corporate environments, and other verticals.
The high cost of video content creation, talent, equipment, and post-production processes necessitates strategic planning and the deployment of advanced VoD software for delivery and deployment. Technological advancements continue to drive growth in the market, with production houses and distributors leveraging streaming platforms to expand their reach. Despite privacy concerns, with GDPR and other privacy laws ensuring confidentiality, the learning experience offered by VoD platforms in online education and e-learning is increasingly popular, making it a crucial player in the media and entertainment industry.
Increasing penetration of smart TVs is the key trend in the market. These approaches may include providing detailed product information, offering demos or trials, and engaging in open communication with potential customers to address any inquiries and build trust. By adhering to a formal and informative tone, vendors aim to create a positive and educational experience for their audience. In the dynamic and competitive entertainment sector, VoD platforms have emerged as a significant monetization opportunity for content creators, enabling them to reach a global audience and cater to viewer preferences. Movies and TV shows are the primary content types, but educational institutions and corporate environments also leverage VoD for online education and training. However, challenges such as video content piracy, security, confidentiality, GDPR, and privacy laws necessitate the solutions. Technological advancements have led to innovative solutions in VoD software, delivery, and deployment processes. Production houses and distributors collaborate with streaming platforms to expand their reach and capitalize on the growing demand.
Strategic planning and partnerships with technology providers are essential for vendors to stay competitive in this market. The intense competition has resulted in numerous mergers and acquisitions and strategic alliances among VoD providers, enhancing their content library and expanding into new verticals, including media and entertainment and other industries. The high cost of video content creation, talent, equipment, and post-production processes necessitates continuous investment and innovation to maintain a competitive edge.
The availability of pirated video content on online platforms is a major challenge in the market. It is essential to acknowledge the existence of this issue while maintaining a formal tone. Unauthorized distribution of copyrighted material can have legal consequences. Online video streaming services and websites may offer pirated content, which can negatively impact the revenue of content creators and producers. It is crucial to promote ethical consumption of media and respect intellectual property rights. The Video-On-Demand (VoD) market in the entertainment sector continues to grow, driven by audience engagement and innovative solutions from VoD platforms. Movies and TV shows are increasingly being consumed through these platforms, catering to viewer preferences and behavior. However, the market faces challenges, particularly from video content piracy. Torrent files, which contain metadata for illegal downloads, are a significant threat. Users can obtain copyrighted content, including TV shows, movies, documentaries, and educational videos, for free through torrenting software like BitTorrent. This eliminates the need for subscriptions to VoD services, posing a significant challenge to monetization. Furthermore, security and confidentiality concerns, such as GDPR and privacy laws, necessitate measures to protect content and user data.
Content creators, production houses, distributors, and streaming platforms must address these challenges through strategic planning and technological advancements. VoD providers must continuously expand their content library to cater to diverse audience segments, including educational institutions, corporate environments, and other verticals. The high cost of video content creation, talent, equipment, and post-production processes necessitates the need for effective monetization strategies. Innovative solutions, such as VoD software for delivery and deployment, can help mitigate these challenges and enhance the overall learning experience in online education and e-learning.
The video-on-demand 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
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 provides video-on-demand services through Live Video Streaming and Video Delivery Solutions, catering to both live events and linear TV.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
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.
The video-on-demand (VOD) market in the entertainment sector has witnessed significant growth in recent years, driven by monetization opportunities and audience engagement. Movies and TV shows are the primary content types consumed on VOD platforms. Viewer preferences and behavior have become crucial factors for content creators in the VOD industry. Educational institutions and corporate environments are also adopting VOD for online education and e-learning, enhancing the learning experience. However, challenges such as video content piracy, security, confidentiality, GDPR, and privacy laws necessitate innovative solutions. The high cost of video content creation, talent, equipment, and post-production processes necessitates strategic planning by VOD providers.
Technological advancements in VOD software, delivery, and deployment processes have streamlined production houses and distributors' operations. OTT platforms have disrupted traditional media and entertainment, with educational and other verticals also leveraging VOD. As the market evolves, VOD providers must stay abreast of emerging trends and invest in innovative solutions to maintain viewer engagement and differentiate themselves.
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Market Scope |
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Report Coverage |
Details |
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Page number |
183 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 20.77% |
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Market growth 2024-2028 |
USD 309.7 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
16.93 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 32% |
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Key countries |
US, China, India, UK, and France |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Akamai Technologies Inc., Alphabet Inc., Amazon.com Inc., Amdocs Ltd., Apple Inc., AT and T, Cisco Systems Inc., Comcast Corp., Edgio Inc., Fujitsu Ltd., Huawei Technologies Co. Ltd., KWIKmotion, Lumen Technologies Inc., Muvi LLC, Netflix Inc., Roku Inc., The Walt Disney Co., Verizon, and Walmart Inc. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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