Video Streaming Application Market Size, Share, Analysis 2032

Report Description

Video Streaming Application Market Outlook 2032

The global video streaming application market size was USD 145.68 Billion in 2023 and is projected to reach USD 330 Billion by 2032, expanding at a CAGR of 9.53 % during 2024–2032. The market growth is attributed to the increasing adoption of streaming services, advancements in technology, and expanding user base across various platforms.

Increasing demand for on-the-go entertainment and seamless content delivery is fueling the market. The proliferation of smartphones, tablets, and smart TVs has made video streaming applications an integral part of daily life, catering to a wide array of content consumption needs. These applications offer user-friendly interfaces and advanced features such as personalized recommendations, offline viewing, and multi-screen synchronization, enhancing the overall viewing experience.

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Growing investment in technology and infrastructure by key industry players is enhancing the market. Innovations in streaming technology, such as adaptive bitrate streaming and AI-driven content curation, have improved the quality and reliability of video delivery. Additionally, regulatory bodies such as the Federal Communications Commission (FCC) and the European Union's General Data Protection Regulation (GDPR) ensure compliance with data privacy and content distribution standards, fostering a secure and fair streaming environment. For example,

• On May 9, 2024, the US Federal Communications Commission (FCC) set guidelines to ensure net neutrality, allowing equal access to streaming services and preventing unfair throttling of internet speeds. This regulatory environment fosters a competitive market where both established players and new entrants thrive, driving innovation and consumer choice.

The applications of video streaming are expanding beyond entertainment to include sectors such as education, healthcare, and corporate communication. Educational institutions are leveraging streaming apps for remote learning, while healthcare providers use them for telemedicine consultations. Corporations are adopting video streaming for internal communications and virtual events, highlighting the versatile and growing demand for these applications across various industries.

Impact of Artificial Intelligence (AI) in Video Streaming Application Market

Artificial Intelligence (AI) significantly enhances video streaming applications' functionality and user experience. AI algorithms analyze user behavior to offer personalized content recommendations, increasing viewer engagement and satisfaction. Advanced AI techniques, such as machine learning and deep learning, improve video compression and streaming quality, ensuring seamless playback even under variable network conditions. Additionally, AI-driven analytics help streaming platforms optimize their content strategies and ad placements, increasing revenue and operational efficiency.

Video Streaming Application Market Dynamics

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Major Drivers

Increasing internet penetration is driving the market. The adoption of video streaming services is expected to grow, as high-speed internet access becomes prevalent in emerging economies. This trend allows consumers to access high-quality streaming content seamlessly, enhancing user experience and boosting the market. For instance,

• In February 2023, Brightcove launched Communications Studio, a novel video streaming solution targeting enhanced internal communication among HR and industry professionals.

Growing adoption of smart devices is fueling the market. The proliferation of smartphones, tablets, and smart TVs enables users to stream content anytime and anywhere, driving the demand for video streaming applications. This convenience and flexibility make video streaming services an integral part of everyday entertainment.

High investment in advanced technologies such as AI and machine learning is anticipated to boost the market. These technologies enhance user experience by offering personalized content recommendations and improving streaming quality. User satisfaction and market competitiveness are expected to rise, as platforms integrate these innovations.

Existing Restraints

High bandwidth requirements hamper the market. The demand for higher resolution content such as 4K and 8K necessitates robust internet connections with significant bandwidth capabilities. Limited internet infrastructure in certain regions or areas where high-speed access is lacking that results in buffering issues and reduce video quality, impacting the user experience negatively and hindering the market.

Content licensing complexities restrain video streaming applications. Securing rights to stream popular movies, TV shows, and live events involves negotiating with multiple content creators, studios, and distributors. This process is time-consuming, and costly, it leads to exclusivity conflicts among streaming platforms. Varying licensing agreements and regulations across different regions further complicate content acquisition efforts, limiting the expansion of content libraries and entertainment options for users.

Emerging Opportunities

Increasing demand for live streaming services presents a significant opportunity in the market. Streaming platforms have the opportunity to attract a large audience and generate revenue through subscriptions, pay-per-view models, and advertising, with the rise of live events such as sports tournaments, concerts, conferences, and gaming competitions being streamed online. The convenience of watching live events from anywhere on various devices enhances user engagement and expands the market reach for streaming platforms, driving the market. For instance,

• In January 2023, Haivision unveiled Haivision Hub, a FedRAMP-compliant video networking service tailored for government applications. This platform enables secure live-streaming video sharing among diverse government agencies, ensuring adherence to federal information assurance standards.

Rising adoption of over-the-top (OTT) streaming platforms creates lucrative opportunities for the market. OTT platforms deliver content directly to viewers over the Internet, bypassing traditional cable or satellite TV services. The increasing preference for on-demand content, personalized recommendations, and flexible viewing options among consumers enhances OTT streaming services. Video streaming applications offer a wide range of content genres, exclusive original programming, and seamless user experience to benefit from the expanding OTT market.

Growing investment in original content production by streaming platforms creates new opportunities in the video streaming application market. Platforms such as Netflix, Amazon Prime Video, and Disney+ are heavily investing in producing exclusive movies, series, documentaries, and reality shows to attract and retain subscribers. Original content differentiates streaming services and drives subscribers, viewer engagement, and customer loyalty.

Scope of the Video Streaming Application Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics are included in the report.

Regional Outlook

In terms of region, the global video streaming application market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America held a major market share in 2023, due to the high adoption rate of advanced technologies, widespread internet penetration, and the presence of key industry players. The availability of high-speed internet infrastructure, a tech-savvy population, and a strong request for on-demand content are driving the market in the region.

The market in Asia Pacific is projected to grow at a significant pace during the forecast period, owing to the expanding digital infrastructure, increasing smartphone penetration, and rising disposable incomes in emerging economies. Countries such as China, India, Japan, and South Korea are witnessing a surge in demand for video streaming services due to the growing popularity of online entertainment among the youth. The proliferation of affordable data plans, rapid urbanization, and the emergence of local streaming platforms offering regional content are expected to drive the market in the coming years. For instance,

• In November 2021, Disney+ launched in South Korea expanding its global reach, offering a wide range of Disney, Pixar, Marvel, Star Wars, and National Geographic content.

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Video Streaming Application Market Segment Insights

Type Segment Analysis

Based on type, the video streaming application market is bifurcated into live streaming and video on demand (VOD). The Video on Demand (VOD) segment held a major share of the market in 2023 and is expected to expand at a significant growth rate in the coming years, owing to the increasing preference for on-demand content consumption among consumers. Busy lifestyles, flexibility in content viewing, and the availability of a vast library of movies, TV shows, and original content are propelling the segment. For instance,

• In April 2024, Accedo, Brightcove, and Al Sharqiya Group launched Iraq's first SVOD platform as an upgrade to 1001 OTT, offering ad-free premium content and live channels, catering to Arabic-speaking audiences with collaborations with OSN+, Rotana, and StarzPlay.

Moreover, the expansion of high-speed internet infrastructure globally, the rising adoption of smart devices, and the increasing number of streaming platforms entering the market are fueling the segment. Additionally, advancements in streaming technology, personalized recommendations, and the convenience of accessing content across multiple devices are further boosting the segment.

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Platform Segment Analysis

On the basis of platform, the global market is segregated into smartphones & tablets, smart TVs & set-top boxes, computers & laptops, gaming consoles, and others. The smartphones & tablets segment held the largest market share in 2023, attributed to the widespread adoption of mobile devices, increasing internet accessibility, and the convenience of streaming content. Improved screen resolutions, enhanced mobile application experiences, and the availability of high-speed mobile data networks are fueling the segment.

The smart TVs & set-top boxes segment is anticipated to create the largest revenue in the market during the projected period, due to the rising popularity of smart TVs, the integration of streaming apps into TV interfaces, and the demand for enhanced home entertainment experiences. Smart TVs offer seamless access to streaming services directly on the television screen, eliminating the need for external devices. Additionally, the expansion of content partnerships with TV manufacturers, and the trend toward connected home entertainment systems are propelling the segment. For instance,

• In 2023, Kaltura's Cloud TV Platform launched enhancements for TV operators and media clients, improving user experience with Business Insight, Shop-in-Shop, and monitoring tools for real-time control and revenue.

Revenue Model Segment Analysis

Based on revenue model, the video streaming application market is segmented into subscription-based, ad-based, transactional, and hybrid. The subscription-based segment led the market in terms of revenue in 2023, owing to the increasing preference for uninterrupted, ad-free viewing experiences among consumers. Subscription-based models offer access to a wide range of content without interruptions from advertisements, enhancing user satisfaction and retention are boosting the segment.

The ad-based segment is projected to register a robust growth rate during the assessment years, due to the growing demand for free, ad-supported streaming services among cost-conscious consumers. Ad-based models offer free access to content supported by advertisements, attracting a large audience base and generating revenue through ad placements. Additionally, the scalability of ad-based models and the ability to monetize a wider user base are projected to drive the segment in the coming years.

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Content Type Segment Analysis

On the basis of content type, the market is divided into movies, TV shows & series, live sports & events, original content & productions, documentaries & educational content, and user-generated content (UGC). The TV shows & series segment generated a major revenue share of the market in 2023, attributed to the popularity of binge-watching culture, the availability of exclusive series on streaming platforms, and the continuous release of new episodes, seasons, and original series. Streaming platforms invest significantly in acquiring and producing engaging TV content to attract subscribers and retain viewer interest, driving the segment.

The original content & productions segment is projected to register a robust growth rate during the assessment years, due to the increasing emphasis on exclusive and original content by streaming platforms. Original content such as movies, series, documentaries, and reality shows attract subscribers, enhance platform differentiation, and strengthen viewer engagement. Streaming platforms invest in partnerships with content creators, studios, and production houses to develop compelling original content.