The global video streaming market is expected to grow at a CAGR of around 12.2% from 2020 to 2027 and expected to reach the market value of around US$ 843.1 Bn by 2027.
Users can consume online content without having to wait for it to download thanks to streaming. Streaming is a method of sending and receiving data (such as audio or video) in a continuous stream across a network. It enables playback to begin while the rest of the data is being sent. For example, once a user's computer or phone receives the start of a movie, they can begin watching it; the remaining data is transmitted as the movie continues to play. Beginning with services like YouTube, video was the first mass streaming hit. Instead of downloading large multimedia files, video streaming compresses the data into small packets and sends them to your device, where they are decompressed and displayed. YouTube, Netflix, Amazon Prime, Ullu, Google Play, and the newest large-scale addition to the scene: Disney+, are among the most popular video streaming services available today. Streaming video saves a lot of time and effort. Instead of downloading large files that would take up a lot of storage space on your device, you can watch whatever you want without storing anything.
Cloud based video streaming application have witnessed significant attention in the global video streaming market
Video streaming is used in a variety of applications, ranging from e-learning to natural disaster management. In 2019, video streaming accounts for more than 80% of total Internet traffic. Through the incorporation of a cloud-based video streaming engine, which allows for interactive video streaming has gained significant attention in the global market. The Interactive Video Streaming Engine (IVSE) is generic, and video stream providers can customize it by defining their own interactive services based on their applications and the preferences of their viewers. The engine implements the defined interactive services in a cost-effective manner by performing on-demand processing of video streams on potentially heterogeneous cloud services. Furthermore, cloud services use video stream zooming to overcome problems with small screen sizes. The use of a cloud environment for parallel processing of video chunks allows for real-time delivery.
Availability of various devices for streaming bolsters the growth of global video streaming market
Consumption of online media has increased dramatically in recent years. Mobile devices have surpassed desktop computers as the preferred medium for consuming online media. In the last five years, the smart phone market has grown at an exponential rate. Smartphone devices grew at a CAGR of 17% globally, compared to 9.5% growth in all mobile devices. Smartphone sales surpassed 2 billion in 2014, with 4.6 billion expected by 2019. As the number of mobile devices grows, consumers will find it easier to access video and music content. In 2014, smart phone mobile data traffic alone accounted for 1.73 EB per month (69% of global mobile data traffic), and it is expected to grow 10-fold between 2014 and 2019, with a compound annual growth rate (CAGR) of 60%. From 2014 to 2019, tablet mobile data traffic will more than double (at an 83% CAGR) to reach 3.2 EB per month.
COVID-19 impact on video streaming market
With COVID-19 restrictions in place globally, the reliance on digital technology skyrocketed this year as video calls, emails, instant messaging, and virtual entertainment replaced face-to-face interactions in and out of the workplace, according to a report released by the Thomson Reuters Foundation. According to the International Energy Agency, between February and April, when global lockdowns were at their peak, global internet traffic increased by nearly 40%, driven by video conferences, online gaming, streaming, and social media. Furthermore, at this rate, web traffic is expected to double by 2022, with mobile internet users expected to increase to 5 billion by 2025 from 3.8 billion last year, according to the IEA. Furthermore, the IEA predicts that video and gaming streaming services will account for 87% of consumer internet traffic in 2022, driving demand for data centre services.
The global video streaming market is segmented based on streaming type, solution, platform, revenue, and end-user. Based on streaming type, the market is bifurcated into live video streaming and non-linear video streaming. By solution, the market is segregated as internet protocol TV, over-the-top (OTT), and pay-tv. By platform, the market is segmented as gaming consoles, laptops & desktops, smart phones & tablets, and smart TV. By revenue, the market is segmented as advertising, rental, and subscription. Furthermore, end-user is classified into enterprise and consumer.
North America dominates the video streaming market; Asia Pacific fastest growing regional market
North America has the highest revenue share of the global video streaming market. One of the key factors driving the growth of the global video streaming market is the widespread adoption of advanced technology, such as cloud-based streaming platforms. More than two-thirds (68%) of US households kept their cable TV subscriptions in 2020, the same share as in 2019. Furthermore, in 2019, survey respondents used slightly more than six streaming services on average, a figure that is expected to rise to nearly eight in 2020. Pay TV subscribers aged 35-49 were the most likely to use additional services. According to a World Economic Forum report, video streaming has been on the rise for more than a decade, but last year, the number of streaming subscribers worldwide (613 million) surpassed the number of cable subscribers (556 million). According to the Global Web Index, more than 80% of consumers in the United States have consumed more content since the outbreak, with broadcast TV and online videos (YouTube, TikTok) being the primary mediums across all generations and genders.
Asia Pacific, on the other hand, is expected to have the fastest growing CAGR in the coming years. This is due to the increased adoption of pay TV, OTT solutions, and improved network infrastructures, which presents a significant opportunity for video streaming solution providers.
The prominent players of the global video streaming market involve Akamai Technologies, Inc., Amazon Web Services, Apple Inc., Cisco Systems, Inc., Kaltura, Netflix, Inc., Wowza Media Systems, LLC., International Business Machine Corporation (IBM Cloud Video), and among others
Market By Streaming Type
Live Video Streaming
Non-Linear Video Streaming
Market By Solution
Internet Protocol TV
Market By Platform
Laptops & Desktops
Smartphones & Tablets
Market By Revenue
Market By User
Video streaming market is expected to reach a market value of around US$ 843.1 Bn by 2027.
The video streaming market is expected to grow at a CAGR of around 12.3% from 2020 to 2027.
Based on streaming type, live video streaming segment is the leading segment in the overall market.
Rising adoption of digitization is one of the prominent factors that drive the demand for video streaming market.
Akamai Technologies, Inc., Amazon Web Services, Apple Inc., Cisco Systems, Inc., Kaltura, Netflix, Inc., Wowza Media Systems, LLC., International Business Machine Corporation (IBM Cloud Video), and among others.
North America is anticipated to grab the highest market share in the regional market
Asia Pacific is expected to be the fastest growing market in the forthcoming years