June 17, 2024
Ict

Advanced Video Coding (AVC) Market is Poised to Garner High Revenues owing to Rising Demand for High-Quality Video and Image Content


Market Overview:
Advanced video coding (AVC), also known as H.264, is a video compression standard developed by the Joint Video Team of ISO/IEC MPEG and ITU-T VCEG. It is capable of providing good video quality at substantially lower bit rates than previous standards. AVC compression is used in various applications such as Blu-ray discs, internet streaming, television broadcasting, and digital cable. With the rising demand for high-quality video and image content for various applications, the adoption of AVC is increasing rapidly.

The global AVC market is estimated to be valued at US$3.46 billion in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period of 2023 to 2030.

Key Takeaways
Key players operating in the AVC market are 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, and Qualcomm Incorporated. These players are focusing on developing advanced AVC solutions and partnering with OEMs to strengthen their market position.

The growing demand for high-quality video streaming and the rapid deployment of 5G networks across the globe are creating significant opportunities for AVC technology providers. Furthermore, the rising availability of low-cost smartphones and tablets coupled with increasing internet penetration in developing markets is anticipated to drive the adoption of AVC codecs for online video viewing.

The key players in the market are also focusing on global expansion by strengthening their presence in emerging markets. For instance, Intel Corporation partnered with Chinese telecom operators to promote the adoption of its AVC solutions across networks in the country.

Market Drivers:
One of the key drivers for the growth of the AVC market is the exponential increase in the amount of video content being generated and consumed globally every year. According to statistics, over 500 hours of video are uploaded to YouTube every minute. Similarly, Netflix added over 35 million subscribers globally in 2020 alone. This massive surge in online video consumption is driving the need for high-quality yet efficient video compression standards like AVC.

Market Restraints:
One major challenge restraining the growth of the AVC market is the phenomenal progress of new and more potent video codecs like high efficiency video coding (HEVC) and Versatile Video Coding (VVC) that can provide better compression at lower bitrates than AVC. Several industry leaders are gradually transitioning to these new standards, which may limit the adoption of AVC over the long run.

Segment Analysis

The advanced video coding (AVC) market is dominated by the hardware sub segment. The hardware sub segment accounts for over 50% share of the overall market currently led by devices like set-top boxes, Blu-ray players, smartphones, digital cameras and PC GPUs. The widespread availability and affordability of such consumer electronics coupled with the integration of advanced video coding in their hardware design has enabled the mass adoption of high definition and ultra high definition video content.

Global Analysis

The Asia Pacific region currently dominates the global advanced video coding market and is expected to witness the highest growth during the forecast period. Rapid urbanization, rising disposable incomes and improving connectivity infrastructure in countries like China, India and Southeast Asia have led to increased consumption of video content through smartphones, laptops/PCs and smart TVs. Pproliferation of online video platforms and growing fandom of online series/shows is further propelling the demand for high quality video codecs like advanced video coding in the Asia Pacific region. North America and Europe are other major regions for the AVC market owing to high penetration of premium devices and networks that support 4K/8K resolution video playback.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it