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The advanced video coding (AVC) market has experienced significant growth in recent years. AVC, also known as H.264, is a video compression standard capable of reducing file sizes of digital video content by 50-75% with no perceivable loss in quality. It has enabled the delivery of premium quality video content across various devices and platforms. AVC provides high quality, high-definition images along with smaller files sizes that help conserve storage space and reduce bandwidth requirements. Features such as higher resolution support and faster encoding/decoding have made AVC popular across consumer electronics, broadcast, broadband communication systems, and medical imaging applications. The growing penetration of IoT devices and the demand for high resolution video such as 4K and 8K is expected to drive the need for AVC in the coming years.
The Global Advanced Video Coding Market is estimated to be valued at US$ 3.46 Bn in 2024 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the advanced video coding (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, Qualcomm Incorporated. These players are focusing on developing more efficient AVC solutions and platforms to provide premium quality video experiences.
The advent of novel applications such as mobile video, OTT video services, VR/AR, and 360-degree video are opening lucrative growth opportunities for AVC solutions. Furthermore, the rising adoption of 4K and 8K displays as well as video conferencing is estimated to drive the demand for advanced video compression technologies like AVC.
Major players in the AVC market are focusing on global expansion strategies to capitalize on the growing demand for over-the-top media services especially in developing regions. Companies are partnering with telecom operators and media companies to offer customized AVC solutions and platform across Asia Pacific, Middle East, and Latin America.
Market drivers:
Growing penetration of IoT devices: The integration of AVC in various IoT devices such as smart TVs, IP cameras, tablets are driving the need for efficient video compression solutions. According to estimates, there will be over 27 billion IoT devices deployed by 2025.
Market restraints:
Compatibility issues with legacy systems: Implementation of high-end AVC technology requires overhaul of existing infrastructure which can be costly for various organizations. Also, compatibilities issues may arise while integrating AVC with older video delivery platforms and networks. This acts as a major challenge for widespread adoption of advanced video coding standards.
Segment Analysis
This market can be segmented based on encoding standards, encoding/decoding products, chipsets, device type, application and geography. The encoding standards segment is further classified into H.264/AVC, H.265/HEVC, VP9 and others. Among these, H.264/AVC dominated the market in 2024 due to its widespread usage for various applications like digital television broadcasting, DVD, Blu-ray discs and internet video streaming. The encoding/decoding products segment includes both hardware and software encoders/decoders. Hardware encoders held the largest share as they provide better functionality and higher encoding performance compared to software encoders.
Global Analysis
North America held the largest share of this market in 2024 owing to strong presence of key players and early adoption of advanced video coding technologies. Asia Pacific is expected to grow at the fastest rate during the forecast period due to growing adoption of internet video streaming services in emerging economies like China and India. The key players are focusing on emerging economies in Asia Pacific by expanding their distribution networks and launching low-cost products to tap the potential growth opportunities in this region. Europe is also expected to offer lucrative opportunities for market expansion fueled by increasing investments in developing high quality networks to support bandwidth intensive applications like online gaming and live streaming.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
