Advanced Video Coding Market Analysis

Advanced Video Coding (AVC) is a video compression format also known as H.264 or MPEG-4 Part 10. It is widely used for video streaming, video conferencing, Blu-ray discs, and digital television. In 2022, the AVC market size was valued at US$ 3.46 billion and is expected to reach US$ 4.79 billion by 2030, growing at a CAGR of 4.15% from 2022 to 2030.

The growth of the AVC market is driven by the increasing demand for high-quality video content, rising internet penetration and bandwidth, and the growing popularity of video streaming services. Moreover, the widespread adoption of AVC in various applications such as video surveillance, medical imaging, and video broadcasting is also contributing to the market growth

Advanced Video Coding (AVC) Market Regional Insights

1. North America: In 2022, North America held a significant share in the AVC market, owing to the presence of major players in the region and the growing adoption of digital media. The region is expected to maintain its dominance in the market during the forecast period. The increasing demand for high-quality video content and the growing popularity of video streaming services are expected to drive the growth of the AVC market in North America. The percentage of market share in North America is estimated to be around 35%.
2. Europe: Europe is another significant market for AVC, owing to the increasing demand for high-quality video content and the growing adoption of digital media. In 2021, Europe held a considerable share in the AVC market and is expected to witness significant growth during the forecast period. The region's growth is attributed to the increasing demand for video streaming services, rising internet penetration and bandwidth, and the widespread adoption of digital media. The percentage of market share in Europe is approximately 30%.
3. Asia-Pacific: The Asia-Pacific region is expected to witness the highest growth rate in the AVC market during the forecast period, owing to the high demand for video streaming services and the growing number of smartphone users. In 2021, Asia-Pacific held a significant share in the AVC market, and this trend is expected to continue during the forecast period. The increasing adoption of digital media and the growing demand for high-quality video content are the key factors driving the growth of the AVC market in the region. The percentage of market share in Asia-Pacific is around 25%.

Figure 1. Global Advanced Video Coding (AVC) Market, By Region

Advanced Video Coding (AVC) Market Drivers:

1. Increasing Demand for High-Quality Video Content: With the growing popularity of digital media and video streaming services, there is a high demand for high-quality video content. AVC enables high-quality video compression without compromising the quality of the content, making it a preferred choice for video streaming, digital television, and other applications.
2. Growing Popularity of Video Streaming Services: The increasing adoption of video streaming services such as Netflix, Amazon Prime, and YouTube is driving the growth of the AVC market. These services require high-quality video compression to ensure smooth playback and streaming, which is facilitated by AVC.
3. Rising Internet Penetration and Bandwidth: With the increasing penetration of the internet and the availability of high-speed internet services, the demand for high-quality video content has surged. AVC helps to compress video content without losing its quality, making it easier to stream and download videos over the internet.
4. Widespread Adoption in Various Applications: AVC is widely used in various applications such as video surveillance, medical imaging, and video broadcasting, which is driving the growth of the market. The increasing adoption of digital media and the growing demand for high-quality video content are also contributing to the market's growth.

Advanced Video Coding (AVC) Market Opportunities:

1. Emergence of 5G Technology: With the emergence of 5G technology, the demand for high-quality video content is expected to surge even further. AVC can play a crucial role in enabling high-quality video compression for 5G networks, presenting significant opportunities for the AVC market.
2. Growing Adoption of Virtual Reality (VR) and Augmented Reality (AR): With the growing adoption of virtual and augmented reality technologies, the demand for high-quality video content has surged. AVC can play a crucial role in enabling high-quality video compression for VR and AR applications, presenting significant opportunities for the market.
3. Rising Adoption of Medical Imaging: The adoption of medical imaging technologies such as X-rays, CT scans, and MRI scans has increased significantly in recent years. AVC can be used to compress medical imaging data without losing quality, presenting significant opportunities for the market.
4. Increasing Demand for Live Video Streaming: The demand for live video streaming services has surged in recent years, driven by the increasing popularity of live sports events, concerts, and other events. AVC can play a crucial role in enabling high-quality video compression for live streaming, presenting significant opportunities for the market.

Figure 2. Global Advanced Video Coding (AVC) Market, By Application

Advanced Video Coding (AVC) Market Trends:

1. Shift Towards High-Efficiency Video Coding (HEVC): While AVC remains a popular video compression format, there is a growing trend towards the adoption of High-Efficiency Video Coding (HEVC) or H.265. HEVC offers better compression and higher quality than AVC, making it an attractive option for video streaming and other applications.
2. Increasing Adoption of Cloud-Based Video Encoding: With the growing popularity of video streaming services, there is an increasing demand for cloud-based video encoding solutions. Cloud-based video encoding allows for faster and more efficient video compression, making it easier to deliver high-quality video content over the internet.
3. Growing Importance of Video Analytics: With the increasing adoption of video surveillance and other applications, there is a growing importance of video analytics. Video analytics uses artificial intelligence (AI) and machine learning (ML) algorithms to analyze video content and extract valuable insights. AVC can play a crucial role in enabling high-quality video compression for video analytics applications.
4. Integration with Artificial Intelligence and Machine Learning: With the increasing adoption of AI and ML technologies, there is a growing trend towards integrating these technologies with video compression solutions. AVC can play a crucial role in enabling high-quality video compression for AI and ML applications.

Advanced Video Coding (AVC) Market Report Coverage

Report Coverage	Details
Base Year:	2022	Market Size in 2022:	US$ 3.46 Bn
Historical Data for:	2017 to 2021	Forecast Period:	2023 - 2030
Forecast Period 2023 to 2030 CAGR:	4.15%	2030 Value Projection:	US$ 4.79 Bn
Geographies covered:	North America: U.S. and Canada Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific Latin America: Brazil, Argentina, Mexico, and Rest of Latin America Middle East and Africa: GCC Countries, Israel, Rest of Middle East, South Africa, North Africa, and Central Africa
Segments covered:	By Type: H.264/MPEG-4 AVC, H.265/HEVC, VP9, AV1, Others By Application: Video Streaming, Broadcasting, Video Conferencing, Surveillance, Others
Companies covered:	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, Qualcomm Incorporated
Growth Drivers:	Increasing Demand for High-Quality Video Content Growing Popularity of Video Streaming Services Rising Internet Penetration and Bandwidth Widespread Adoption in Various Applications
Restraints & Challenges:	Increasing Adoption of Royalty-Free Video Compression Formats Emergence of New Video Compression Technologies Compatibility Issues

Advanced Video Coding (AVC) Market Restraints:

1. Increasing Adoption of Royalty-Free Video Compression Formats: With the emergence of royalty-free video compression formats such as VP9 and AV1, there is a growing trend towards the adoption of these formats. This can limit the growth of the AVC market, as users may opt for royalty-free solutions over AVC.
2. Emergence of New Video Compression Technologies: While AVC remains a popular video compression format, there is always the risk of new technologies emerging that can offer better compression and higher quality. This can limit the growth of the AVC market if users opt for newer technologies over AVC.
3. Compatibility Issues: While AVC is widely adopted, there may be compatibility issues with older devices or software that do not support the format. This can limit the growth of the market, as users may opt for alternative solutions that are compatible with their devices.

Recent Developments

New product launches

1. MainConcept AVC/H.264 SDK (2021): MainConcept, a leading provider of video and audio codecs, launched its latest AVC/H.264 software development kit (SDK) in 2021. The new SDK includes updated encoding and decoding features and supports hardware acceleration for improved performance.
2. Broadcom BCM7218X (2019): Broadcom, a leading semiconductor manufacturer, launched its BCM7218X system-on-chip (SoC) in 2020. The new SoC is designed for use in set-top boxes and supports AVC video decoding, as well as HDR10 and HLG video formats.
3. Matrox M264 (2019): Matrox, a provider of video and graphics solutions, launched its M264 hardware codec in 2019. The M264 supports AVC/H.264 encoding and decoding and is designed for use in broadcast and surveillance applications.

Acquisition and partnerships

1. ATEME and Anevia: In 2020, ATEME, a provider of video encoding and compression solutions, announced a partnership with Anevia, a provider of OTT video delivery solutions. The partnership enabled Anevia to offer AVC/H.264 encoding and other video compression solutions to its customers.
2. V-Nova and NGCodec: In 2021, V-Nova, a provider of video compression solutions, announced a partnership with NGCodec, a provider of cloud video encoding solutions. The partnership enabled NGCodec to integrate V-Nova's AVC/H.264 encoding technology into its cloud video encoding platform.
3. VITEC and EZ TV IPTV: In 2020, VITEC, a provider of video encoding and streaming solutions, announced a partnership with EZ TV IPTV, a provider of IPTV and digital signage solutions. The partnership enabled EZ TV IPTV to offer VITEC's AVC/H.264 encoding technology as part of its IPTV solution.

Top companies in Advanced Video Coding (AVC) Market

1. Apple Inc.
2. Cisco Systems Inc.
3. Google LLC
4. Microsoft Corporation
5. Intel Corporation
6. NVIDIA Corporation
7. Amazon.com Inc.
8. Sony Corporation
9. Samsung Electronics Co. Ltd.
10. Huawei Technologies Co. Ltd.
11. Broadcom Inc.
12. Panasonic Corporation
13. Ericsson AB
14. ZTE Corporation
15. Qualcomm Incorporated