The global video streaming market is valued at 50 Billion in 2020 and is projected to register a CAGR of 21% during the forecast period, 2021–2028. The growth of the market is attributed to the rapid adoption of smartphones owing to the growing use of social media platforms.
The video streaming solution providers are using artificial intelligence (AI) technology to enhance the content quality of videos. AI plays a significant role in cinematography, scriptwriting, voice-overs, editing, and various other aspects of video production and publication. Recently, the admiration of social media platforms such as YouTube and Netflix has increased exponentially.
Recent technological advancements and innovations are expected to cater the growing demand for high-quality videos and its security. For instance, in April 2019, Akamai technologies highlighted its innovations of delivering high-quality digital experiences at the 2019 NAB show in the US. The firm exhibited its innovations in on-demand and live video service segment, which includes direct connect, cloud wrapper, cloud interconnects, token authentications, and VPN & DNS proxy detection.
Rising adoption of digital media across several industry verticals has increased the inclination toward various streaming solutions and services. For instance, in November 2019, Apple Inc. made its entry in the online video streaming industry by the launch of TV+ service to leverage its market position. In March 2019, Google, the subsidiary of Alphabet Inc., revealed its cloud-based gaming console, ‘Yeti’. While in June 2019, Wowza Media Systems, LLC. announced the launch of a complete range of professional services for video-related solutions providers
Increasing number of consumers opting for online TV services due to the rising penetration of Internet is driving the demand for Internet protocol television (IPTV). In July 2019, AT&T intellectual property announced the launch of its streaming service called AT&T TV, which allows users to watch television online.
Videos can be beneficially used in the academic and education sectors to enhance the learning process, such as visual recordings of courses and webinars. Students can easily retain the information with the help of visual recordings. Thus, in the recent time, schools, colleges, and universities are generating multimedia content and are delivering it in video presentation forms. It uses technology to impart the knowledge effectively.
Market Drivers, Restraints, Trends, and Opportunities
- In April 2018, Amazon.com, Inc. and Google collaborated to bring official YouTube app on Amazon’s Fire TV stick. Such complementary services for consumers can pose threat to existing key players in the market during the forecast period.
- Rising adoption of cloud-based services to increase the content reach is positively impacting the market growth, especially in the countries of North America and Europe.
- Ongoing technological advancements and increasing number of service providers in the market can create challenges for the major players in the global market.
- Increasing consumption and effortless access to the video content owing to availability of robust Internet infrastructure and rising penetration of mobile devices are some of the factors that can positively influence the adoption of these services for academic and educational purposes.
- Technological innovations such as blockchain technology and AI improves the quality of the video, which is expected to spur the market growth during the forecast period.
- The emergence of COVID-19 pandemic has obliged people to stay at home for a long period of time. This has positively impacted the video streaming services’ viewership. Individuals across the world are using various live streaming platforms to stay updated on the status of COVID-19, play games, and stay entertained.
Scope of Video Streaming Market Report
The report on the global video streaming market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Video Streaming Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
Streaming Types (Live Video Streaming and Non-linear Video Streaming), Solutions (Internet Protocol TV, Over-the-Top (OTT), and Pay-TV), Platforms (Gaming Consoles, Laptops & Desktops, Smartphones & Tablets, and Smart TVs), Services (Consulting, Managed Services, and Training & Support), Revenue Models (Advertising, Rental and Subscription), Deployment Types (Cloud and On-premises), and Users (Enterprises and Consumers)
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
Key Players Covered in the Report
Akamai Technologies, Amazon Web Services, Inc., Apple Inc., Cisco Systems, Inc., Google, Kaltura, Inc., Netflix, Inc., International Business Machine Corporation (IBM Cloud Video), Wowza Media Systems, LLC. and Hulu, LLC.
Global Video Streaming Market Segment Insights
Live video streaming segment projected to constitute a considerable market share.
On the basis of streaming types, the market is classified as live video streaming and non-linear video streaming. The live video streaming is projected to constitute a considerable market share during the forecast period. Rising demand for digital media services is driving the segment growth. Additionally, the presence of robust Internet infrastructure helps consumers to access media content remotely. Moreover, mobile viewing, ad-free content, large audience potential, analytic tracking, and high-quality streams are some of the factors that are anticipated to spur the growth of the live video streaming segment. The importance of live video streaming is preserved by live content such as sports and news.
The non-linear video streaming segment is projected to expand at a high CAGR during the forecast period owing to growing demand for series linking on streaming services. Additionally, features such as ability to pause live video and no buffering are the key factors boosting the growth of the non-linear video streaming segment.
Over-the-top (OTT) segment is expected to account for a significant market share.
Based on solutions, the market is bifurcated into internet protocol TV, over-the-top (OTT) and pay-TV. The OTT segment is expected to account for a significant market share during the forecast period. The OTT solutions provide film and TV content through Internet, eliminating the need for users to subscribe to pay-TV services or traditional cable services. Growing demand for improved automation and business processes and the availability of broadband infrastructure are expected to further boost the segment growth during the forecast period. Additionally, recent trends in OTT solutions such as rising demand for original digital content, hybrid monetization models, and content fragmentation, are projected to have a positive impact on the growth of OTT segment.
The pay-TV segment is anticipated to expand at a healthy CAGR during the forecast period. Increasing demand for pay-TV services in emerging economies such as China, India, Mexico, and Brazil are boosting the segment growth. Furthermore, increasing programming expenses has encouraged consumer to shift toward OTT services. Moreover, the availability of public Wi-Fi and unlimited data plans is propelling the growth of OTT service providers. For instance, Home Box Office, Inc., launched an online streaming platform named HBO Now. This enables the online viewing of HBO shows without a cable subscription.
Smartphones and tablets segment projected to account a large market share.
In terms of platforms, the market is divided into gaming consoles, laptops & desktops, smartphones & tablets, and smart TVs. The smartphones & tablets segment is projected to account for a large market share during the forecast period. Easy accessibility of the Internet, increasing disposable income, improved standard of living, and changing lifestyle of consumers, are some of the key factors driving the segment growth. The availability of reliable Internet services allow trouble-free live streaming. Smartphones and tablets are more preferred for online content watching owing to easy access and portability of these devices. Additionally, increasing number of applications that organizes TV’s content, such as PLEX, provides the feature to play any compatible media content on the smart TV.
The smart TVs segment is anticipated to expand at a substantial CAGR during the forecast period. Smart TV offers various TV channels and video streaming services, such as Netflix, Amazon, and Disney+. Growing consumer preference for OTT platforms is expected to drive the segment growth. Other video streaming applications for smart TV includes YouTube TV, Hulu, DirectTV Now, PlayStation Vue and Sling TV.
Training & support segment estimated to represent a significant market share.
On the basis of services, the market is divided as consulting, managed services, and training & support. The training and support segment accounted for more than 30% of the market share in 2020, and is expected to grow at a healthy rate during the forecast period.
The managed services segment is expected to expand at a robust CAGR during the forecast period. Managed services combine broadcast and OTT solutions into a single online video management solution. It provides personalized experience to its viewers. Video managed services offer advanced media services to the viewers. It helps them to achieve improved quality content and better monetization of the platform. These services comprise digital packaging & fulfillment, localization & access services, compliance & metadata services, and creative video services. Additionally, it integrates content distribution capabilities for third-party and OTT streaming service providers. These service providers help in managing and monetizing a comprehensive OTT platform and streaming related services.
Subscription segment expected to account for a considerable market share.
Based on revenue models, the market is bifurcated into advertising, rental, and subscription. The subscription segment is speculated to account for a considerable market share during the forecast period. Increasing number of video streaming subscription services is expected to drive the segment growth during the forecast period. The subscription models are more preferred owing to the wide variety of video content and original content offered by OTT providers, such as Netflix Originals, Amazon Prime, and Disney+. These models enable online video streaming with a subscription or an access fee. For instance, Netflix offers monthly subscription plans or programs.
The advertising segment is projected to expand at a high CAGR during the forecast period. Advertising is a common way of monetizing streaming videos. The revenue generated owing to watching the content are paid by advertisers. The marketing requirements encourage advertisers to pay a significant amount of their advertisement budget to OTT platforms.
Cloud segment projected to constitute a significant market share.
Based on deployment types, the market is segmented into cloud and on-premises. The cloud segment is projected to constitute a significant market share during the forecast period. Recent technological advancements in cloud computing have transformed the video streaming and has created various platforms for streaming purposes such as YouTube, Hulu, Amazon, Apple TV+, and Netflix. For instance, in 2019, the cloud segment acquired a significant market share in North America owing to the increasing demand for cloud services in countries such as the US and Canada.
Cloud-based deployment allows video streaming platforms to distribute their content to large audience owing to high speed and large bandwidth. It is designed to handle substantial data content and provides a better viewing experience to customers. Therefore, various streaming service providers prefer cloud segment over on-premises. Most enterprises are incapable of handling heavy traffic on their online streaming platforms owing to the lack of large networks and infrastructures, which in turn, has surged the demand for cloud deployment in the video streaming services.
Consumer segment expected to constitute a significant market share.
On the basis of end-users, the video streaming market is bifurcated into enterprises and consumers. The consumers segment is expected to constitute a significant market share during the forecast period. Increasing demand for video on-demand and live streaming services in the media and entertainment sector is driving the consumers segment growth. Growing preference of viewers to watch videos remotely, rising mobile subscriptions, and increasing adoption of smartphones are some of the key factors that are expected to drive the segment growth.
The enterprises segment is estimated to expand at a CAGR of around 20% during the forecast period. Increasing use of video streaming services by enterprises for training and consulting purposes is expected to drive the segment growth. Further, increasing number of technological advancements such as web-based real time communication, indexing, captioning, superior video codec, and transcoding are projected to fuel the growth of the enterprises segment. Moreover, technology also aids in improving the communication efficiency in companies with help of on-demand video and flexibility to work remotely.
North America estimated to account a considerable market share.
In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is estimated to account for a considerable market share during the forecast period. The growth of the market in the region is attributed to the rapid growth in the cloud-based streaming services.
The market in Asia Pacific is expected to expand at a high CAGR during the forecast period. Growing consumer inclination toward online streaming, rapid technological advancements, and increasing use of tablets and smartphones are the key factors driving the regional market growth. OTT solution has revolutionized the content consumption of viewers in the Asia Pacific. Operators in this region have expanded the monetization opportunities by offering video streaming multichannel services and fixed and affordable mobile packages. These initiatives by service providers are positively impacting the market growth in this region.
The global video streaming market has been segmented on the basis of
- Live Video Streaming
- Non-linear Video Streaming
- Internet Protocol TV
- Over-the-Top (OTT)
- Gaming Consoles
- Laptops & Desktops
- Smartphones & Tablets
- Smart TVd
- Managed Services
- Training & Support
- Asia Pacific
- North America
- Latin America
- Middle East & Africa
- Akamai Technologies
- Amazon Web Services, Inc.
- Apple Inc.
- Cisco Systems, Inc.
- Kaltura, Inc.
- Netflix, Inc.
- International Business Machine Corporation (IBM Cloud Video)
- Wowza Media Systems, LLC
- Hulu, LLC.
Some of the key players in the global video streaming market are Akamai Technologies, Amazon Web Services, Inc., Apple Inc., Cisco Systems, Inc., Google, Kaltura, Inc., Netflix, Inc., International Business Machine Corporation (IBM Cloud Video), Wowza Media Systems, LLC., and Hulu, LLC.
Companies are focusing on increasing their consumer base to improve their market share and gain a competitive edge in the market. They are adopting various business strategies such as collaborations, acquisitions, mergers and partnerships. For instance, in July 2019, Hive streaming partnered with the software company Kaltura, Inc., to offer its premium video delivery capabilities. With this partnership, Hive streaming was expected to merge its data visualization solutions with broad network optimization offering of Kaltura Inc. This is anticipated to enable high-quality video streaming and non-linear video content.