Video transcoding is a process of transformation of video file from one form to another. The purpose of video transcoding is to make videos viewable across different platforms and devices. This process is also called as video encoding. Video transcoding has applications in various sectors such as telecommunication, media and entertainment, IT and gaming, broadcasting, and education.
Transcoding can convert a video in different formats. These video encoding formats include 3GP, MP4, FLV, WMV, and others. Each version is ideal for different users for viewing video on various platform and devices. Video transcoding decreases buffering and latency for viewers. Video transcoding is used to deliver high quality videos to users with fast internet speed. Moreover, video transcoding can deliver lower resolution videos with slower internet speed.
Factors Driving Growth of the Global Video Transcoding Market
Rising social networking is fueling the growth of the video transcoding market over the forecast period. People upload their life updates on various social networking sites such as Facebook, WhatsApp, Instagram, and others, where video transcoding is useful to adjust the size and quality of the video according to the site and device requirements. For instance, according to Coherent Market Insights, in 2017, there were around 2,378 Million social network users across the globe. Therefore, this increase in social networking usage among users is expected to boost the demand of video transcoding market globally.
Increasing adoption of cloud-based video transcoding solutions is expected to drive growth of the video transcoding market. Cloud-based video transcoding solutions are cost effective, customizable, scalable, and flexible. For instance, Qencode Inc. builds powerful cloud video transcoding platforms, which make video file 60% smaller without losing quality and improve quality on videos that use h.264 (AVC1), h.265 (HEVC), and VP9, MP4, HLS, and MPEG-DASH. Furthermore, cloud-based video transcoding is the preferred solution for distance education, which can transcode videos of syllabus or tutorials into the required format for displaying on user’s (student’s) device.
Global Video Transcoding Market: Regional Insight
On the basis of region, video transcoding market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East, and Africa. North America region held major share in the global video transcoding market in 2018, owing to large number of key players in the region, which include Imagine Communications Corporation, VBrick Systems, Inc., Intel Corporation, Encoding.com Inc., NVIDIA Corporation, and others.
Moreover, Asia Pacific is expected to be the fastest growing region in the video transcoding market over the forecast period, due to growing media and entertainment industry in the region. Video transcoding is widely used in media and entertainment industry. According to India Brand Equity Foundation (IBEF), Indian media and entertainment (M&E) industry exhibited a CAGR of 10.90 % from year 2017 to 2018; and is expected to exhibit a CAGR of 13.10 % to reach US$ 39.68 billion (Rs 2,660.20 billion) by 2023 from US$ 22.28 billion (Rs. 1,436.00 billion) in 2018. Moreover, India's online gaming industry is expected to exhibit a CAGR of 22% from 2018 to 2023 to reach US$ 1.68 billion (Rs 11,900 crore) by 2023.
Key Players in the global Video Transcoding Market
Prominent players in the market include Intel Corporation, Encoding.com Inc., NVIDIA Corporation, Imagine Communications Corporation, VBrick Systems, Inc., Wowza Media Systems, LLC, ActiveVideo Networks, Inc., and HaiVision Systems, Inc.
Video Transcoding Market: Taxonomy