Market Overview
In 2024, the worldwide video streaming industry revenue is projected to stand at USD 157.2 billion, and growing at a CAGR of 21.6% over the projection period, it is set to attain USD 508.8 billion by the end of the decade. This can be credited to the growing use of artificial intelligence and blockchain tech to upgrade video quality. AI is now playing a vital role in cinematography, editing, scriptwriting, voice-overs, and numerous other aspects of video production and upload. Some of the recent Self-developed AI video generators and editors include Pictory which was launched in July 2020, and AVCLabs Video Enhancer AI which was released in 2021. Both of them improve the scale of video as much as possible without compromising the quality. Thus, the market for video streaming solutions is driven by growing trends such as the increased usage of smartphones.
Key Insights
- In 2023, the linear video streaming category dominated, attaining 60% of the industry share because of augmented digital media device usage and simple access to online content.
- This model provides scheduled programming, similar to traditional TV, with content played at precise times and no playback control.
- Non-linear video streaming is projected to advance quicker in the projection period because of its simplicity, series linking, and on-demand content access.
- Other development reasons for non-linear streaming include smooth streaming, ad-free experience, nonappearance of scheduled timing, and live pause feature, advancing user ease and convenience.
- The solutions category dominated the industry with USD 98 billion in revenue in 2023, propelled by the need for internet protocol TV, over-the-top (OTT) content, and pay-TV services.
- OTT solutions contributed significantly because of their ad-free content, original content, and hybrid monetization models, leveraging unlimited data plans and public Wi-Fi hotspots.
- The managed services category gained importance by providing broadcast and OTT solutions in a unified online video management solution, advancing user experience with digital packaging, localization, compliance, and creative video.
- In 2023, the smartphones and tablets category held the largest share of 45%, credited to internet availability, lifestyle changes, and easy live streaming, with smartphones serving as second screens for information retrieval during TV viewing.
- The TV category is projected to advance significantly because of numerous video streaming applications and smart TVs providing an extensive range of TV channels and streaming services.
- The subscription revenue model prevails, advancing at 21.9% CAGR, propelled by platforms such as Netflix, Amazon Prime Video, and Apple TV+ providing a huge content library, while advertisement revenues also contribute significantly.
- Consumer end-user segment leads, boosted by the surge in mobile subscriptions, connected devices, and wide live streaming and on-demand content viewership.
- The enterprise segment is the biggest and continuously expanding, especially in the Training and Consulting domains with such benefits as superior video codecs, real-time transcoding, and better and more effective communication to adapt to the increased remote working environments.
- North America is the largest market in cloud-based streaming services holding around 50% of revenue share in the year 2023 due to advanced IT systems and legal compliances like FedRAMP for security examination and auditing.
- The Asia-Pacific region is anticipated to have the highest growth rate followed by North America and Europe with a CAGR of 22%. Due to advances in technology, a higher propensity to use mobile devices, and growing trends in streaming services – particularly in South East Asia where internet speeds are constantly on the rise.
SOURCE: P&S Intelligence
Comments