ADVANCED VIDEO CODING (AVC) MARKET ANALYSIS

The Advanced Video Coding (AVC) Market size was valued at USD 3.46 Billion in 2023 and is expected to reach USD 4.79 Billion by 2030, growing at a CAGR of 4.8%. 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.

The growth of the Advanced Video Coding (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 market growth.

Advanced Video Coding (AVC) Market Regional Insights

• North America: North America held a significant share in the Advanced Video Coding (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 Advanced Video Coding (AVC) Market in North America.
• 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 2023, Europe held a considerable share in the Advanced Video Coding (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.
• 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. Asia Pacific held a significant share in the Advanced Video Coding (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 Advanced Video Coding (AVC) Market in the region.

Figure 1. Global Advanced Video Coding (AVC) Market Share (%), by Region, 2023

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Analyst Viewpoint:

The Advanced Video Coding (AVC) Market is poised to grow significantly over the next few years driven by the rising demand for 4K and higher resolution video content. The superior compression capabilities of AVC make it well suited to efficiently distribute high-bandwidth content. Many media and entertainment companies are actively investing in 4K production, which will boost the need for AVC encoding. On the streaming front, major players like Netflix have already embraced 4K, and the widespread availability of ultra-HD content will accelerate market growth.

One of the main restraints could be the emergence of new video codecs like HEVC and VVC that offer even higher compression compared to AVC. However, AVC still enjoys a significant installed base advantage and wide device support, which will allow it to coexist with newer technologies for the foreseeable future. The adoption of 5G networks also provides a major opportunity as it will enable high-speed transportation of 4K videos for applications like VR and AR.

The Advanced Video Coding (AVC) Market is anticipated to be led by North America and Europe in the short term, driven by early demand for UHD content and device penetration. However, Asia Pacific is expected to be the fastest-growing region due to the growing middle-class population, increasing digitalization, and rising disposable income in countries like China and India.

Advanced Video Coding (AVC) Market Drivers:

• 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.
• 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 Advanced Video Coding (AVC) Market . These services require high-quality video compression to ensure smooth playback and streaming, which is facilitated by AVC. For Instance, according to a survey conducted in May 2021, Amazon Prime Video was among the most popular video streaming platforms in India, with just under 70 percent of respondents having subscribed to it. Netflix followed as the next most subscribed to video-on-demand platform.
• 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 compress video content without losing its quality, making it easier to stream and download videos over the internet.
• 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:

• 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 Advanced Video Coding (AVC) Market.
• 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. For Instance, In June 2023, Beamr Imaging Ltd, a leading provider of video optimization solutions, announced the first beta version of its highly anticipated video optimization service.
• 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.
• 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.

Advanced Video Coding (AVC) Market Trends:

• 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. For Instance, on June 15, 2021, MX Player  is an Indian video streaming and video on demand platform cuts down video streaming data consumption by half; upgrades its video encoding and compression technology to H.266
• 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.
• 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.
• 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. For Instance, on October 4, 2022 Google Cloud is brings its expertise in vision-based artificial intelligence to the healthcare industry with the launch of its new Medical Imaging Suite.

Advanced Video Coding (AVC) Market Restraints:

• 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 Advanced Video Coding (AVC) Market, as users may opt for royalty-free solutions over AVC.
• 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 Advanced Video Coding (AVC) Market if users opt for newer technologies over AVC. Counterbalance, To solve the problem of new video compression technologies, it is important to keep up with the latest trends and advancements in the field. One such technology that is gaining popularity is Versatile Video Coding (VVC). It offers significant bit rate reductions of up to 75% over the currently most-used format, the Advanced Video Coding (AVC) standard.
• Compatibility Issues: While AVC is widely adopted, there may be compatibility issues with older devices or software that does 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. Counterbalance, Use transcoding solutions to convert video content into multiple codecs and formats. This ensures that content can be played on a wide range of devices and platforms. Transcoding may be automated through cloud services or software.

Advanced Video Coding (AVC) Market - Recent Developments

Key Development

• On August 29, 2023, Ateme, a global leader in video compression, delivery, and streaming solutions with innovation at its core, will introduce its new Ateme+ OTT packaging service at IBC2023.
•  On September 26, 2023, Akamai Technologies Inc.  provides services for accelerating and improving the delivery of content and applications over the Internet announced that Ateme is the latest organization to join the Akamai Qualified Computing Partner Program. As an Akamai Qualified Computing Partner, Ateme can offer Akamai customers end-to-end, high-quality video delivery solutions. Akamai Technologies, Inc. is an American content delivery network (CDN), cybersecurity, and cloud service company that provides web and Internet security services.

Key strategic Initiatives

• ATEME and Anevia: In 2020, ATEME 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.
• 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.
• 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.

Figure 2. Global Advanced Video Coding (AVC) Market Share (%), By Application, 2023

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Top companies in Advanced Video Coding (AVC) Market

• Apple Inc.
• Cisco Systems Inc.
• Google LLC
• Microsoft Corporation
• Intel Corporation
• NVIDIA Corporation
• com Inc.
• Sony Corporation
• Samsung Electronics Co. Ltd.
• Huawei Technologies Co. Ltd.
• Broadcom Inc.
• Panasonic Corporation
• Ericsson AB
• ZTE Corporation
• Qualcomm Incorporated

Definition: Advanced video coding (AVC) is a widely used video compression standard that efficiently compresses digital video data while maintaining high-quality playback. It utilizes techniques such as motion estimation, motion compensation, and entropy coding to reduce redundancy and achieve high compression ratios. AVC is commonly used in applications like video streaming, video conferencing, digital television broadcasting, and video storage on devices.