The global video transcoding market is estimated to be valued at US$ 62.04 Mn in 2024 and is expected to exhibit a CAGR of 7.0% over the forecast period 2024 to 2031.
The Video transcoding process converts the video from one format to another ensuring the compatibility of video with various devices. It helps in digital media transmission over the internet and through other distribution platforms including smart TVs, smartphones, tablets, gaming consoles, etc. The live video transcoding capability allows streaming live events on multiple screens with different resolutions. The technology reduces buffering and ensures seamless playback of videos across heterogeneous networks and devices.
The Video Transcoding Market Demand for over-the-top (OTT) video streaming platforms such as Netflix, Amazon Prime Video, Disney+ Hotstar, and others has increased significantly in recent years. These platforms offer online access to a huge library of TV shows and movies to their subscribers on-demand. The rising preference for OTT video platforms among audiences has accelerated the need for video transcoding services to cater to a wide range of connected devices. According to various industry reports, global OTT video streaming traffic is projected to grow fourfold between 2019 to 2024, representing 82% of total internet traffic by 2024. This rising OTT video traffic will drive substantial demand for video transcoding solutions in the coming years.
Key Takeaways
Key players operating in the video transcoding market are BASF Corporation, DSM, Cellana Inc., JC Biotech Pvt.Ltd, FEMICO, Croda International Plc, Pharma Marine AS, Clover Corporation, Omega Protein Corporation, Kingdomway Nutrition, Inc., ECPlaza Network Inc., Bizen Chemical Co.LTD, Stepan Company, Novotech Nutraceuticals, Inc., Arjuna Natural, Jiangsu Auqi Marine Biotechnology Co., Ltd., and Aker BioMarine.
The escalating demand for OTT video streaming across the world is a major factor fueling the growth of the video transcoding market. According to various estimates, the global OTT video streaming traffic is projected to grow four-fold during 2019-2024 representing 82% of the total internet traffic globally by 2024. With the rising penetration of smartphones, tablets, and other smart connected devices, the consumption of OTT video content on diverse platforms has increased significantly thereby accelerating demand for video transcoding solutions.
Technological advancements in video compression standards including HEVC/H.265 and AV1 are likely to drive the future growth of the video transcoding market. Compared to legacy codecs, these emerging standards allow higher quality video streaming at lower bit rates, thereby optimizing delivery costs for content providers. Live video transcoding solutions are also evolving to facilitate real-time transcoding of live broadcasts for distribution across diverse consumer screens. Integration of AI/ML capabilities for intelligent transcoding optimization is another key trend expected to bolster market revenues over the forecast period.
Market Trends
Real-time Transcoding- There is an increasing need for real-time transcoding solutions that can handle large volumes of live streaming traffic emanating from live sports, concerts, and event broadcasts. Key players are focussing on enhancing capabilities of their platforms to enable real-time transcoding of high-quality live video feeds for multi-screen delivery.
Emerging Video Compression Standards- Technologies like HEVC/H.265 and AV1 enable efficient video delivery using next-gen compression standards. Many OTT companies are transitioning to these technologies to reduce streaming costs through higher compression without sacrificing quality. This transition will augment demand for updated transcoding solutions.
Market Opportunities
Cloud-based Transcoding Platforms- The growing preference for cloud-based video services provides opportunities for SaaS-based cloud transcoding offerings. Their scalable capabilities make them suitable for dynamic transcoding needs of OTT service providers.
AI-enabled Intelligent Transcoding- Integration of AI/ML can enable contextual, viewer-optimized transcoding. It allows content personalization and recommendation of suitable output formats considering individual device/network capabilities. This presents new avenues for transcoding solution providers.
Impact of COVID-19 on Video Transcoding Market
The Video Transcoding Market Size and Trends experienced significant fluctuations due to the COVID-19 pandemic. Lockdowns and social distancing norms disrupted supply chains and production facilities globally. This affected the availability of hardware and software solutions required for video transcoding activities. The drop in availability coincided with rising demand for digital entertainment and over-the-top (OTT) media services as people spent more time at home. This created a supply-demand gap in 2020 and 2021.
However, technology companies adapted quickly to the changing situation. They adopted work from home policies and leveraged cloud infrastructure to restore operations. The shift to remote working boosted demand for video conferencing and live streaming solutions. This helped offset declines in other segments and stabilised the video transcoding market during the pandemic. Going forward, the industry is expected to grow steadily as digital transformation of media and entertainment accelerates. Companies are focusing on remote production capabilities and real-time transcoding to capture the widespread growth of OTT platforms.
South East Asia and Middle East and Africa are two regions poised to experience rapid growth in the video transcoding market in terms of value over the forecast period. South East Asia has a young demographic profile with rising internet connectivity and technology adoption. Countries like India, Indonesia and Vietnam are driving high growth of OTT services in the region. At the same time, Middle East and Africa are undergoing economic diversification along with increasing urbanisation. This is boosting investments in digital infrastructure and access to online content. Both regions offer lucrative opportunities for video transcoding solution providers to tap emerging customers. Their needs around format conversion, adaptive streaming and multiscreen delivery are expected to drive strong market expansion.
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