The Advanced Video Coding or AVC market comprises video compression solutions and related technologies that enable digital video broadcast and transmission applications. AVC solutions allow higher quality video to be compressed into smaller file sizes and resolutions as compared to traditional standards. They are widely used across wireless networks, cable networks, satellite video broadcast, and video streaming services to provide advanced video capabilities. The rising adoption of 4K and 8K ultra-high definition televisions as well as increasing use of smartphones, tablets, and other mobile devices have been driving greater demand for advanced video compression technologies.
The Global Advanced Video Coding (AVC) 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 companies are focused on developing newer and more efficient AVC solutions to support higher video resolutions as well as investing in research and development of related video compression technologies such as HEVC and VVC.
The growing popularity of streaming media services along with increasing consumption of online video content is fueling demand for advanced video compression solutions. AVC enables high quality video to be delivered using lesser bandwidth and is widely adopted across over-the-top media services. With improvements in network connectivity and rising internet speeds, more end-users are opting for UHD video streaming which is driving the need for efficient video compression technologies.
The global roll-out of 5G networks is also boosting the Advanced Video Coding market. 5G technology will enhance the viewing and sharing experience of high-resolution videos on mobile networks. Leading telecom operators and technology companies are collaborating to develop 5G-enabled AVC solutions to support applications such as virtual reality and augmented reality. The move towards high bandwidth non-wired networks will propel the demand for AVC globally over the forecast period.
Market drivers
The growing popularity of video-on-demand services among customers is a major driver for the Advanced Video Coding market. With increasing digital media consumption, consumers prefer watching videos according to their own schedules and choices. AVC solutions allow VOD platforms to offer an extensive library of high-quality video content while optimizing bandwidth usage and streamlining delivery. This has spurred many media companies as well as telecom operators to adopt AVC for supporting their video-on-demand offerings. The rising adoption of AVC is helping drive the global video-on-demand industry to new heights.
Impact of geopolitical situation on Advanced Video Coding (AVC) Market growth
The ongoing geopolitical tensions and economic sanctions are affecting the growth of AVC market globally. The trade restrictions imposed by USA on China is hampering the export of video encoding chips from China. This has disrupted the supply chain of many consumer electronics manufacturers in USA and Europe. Similarly, sanctions on Russia due to the Ukraine conflict is negatively impacting the European AVC market. The rising raw material prices and supply shortages caused by the pandemic has further inflated the production costs. This is forcing consumer electronic brands to pass on the increased costs to customers, thereby impacting the demand for AVC enabled devices. However, 5G rollout in many countries and growing video streaming market is creating new opportunities for AVC chip providers and equipment makers. The AVC manufacturers need to diversify their supply chain, focus on new growth areas and seek alternative low cost manufacturing hubs to mitigate geopolitical risks and sustain growth in the long run.
Geographical regions of concentrated Advanced Video Coding (AVC) Market value
North America holds the largest share of the global AVC market in terms of value, estimated at around 35% share. This is attributed to high demand for AVC enabled consumer electronics like Smart TVs, tablets, smartphones etc. in USA and Canada. Asia Pacific follows North America with over 30% share of the total market value led by countries like China, India, Japan and South Korea. The rising disposable incomes, expanding middle class population and growing consumer electronics sales in Asia makes it an attractive market for AVC solution providers. Europe accounts for approximately 20% share with major revenues coming from countries like Germany, UK and France. RoW region is projected to witness fastest growth during the forecast period led by Latin American and Middle Eastern countries.
Fastest growing geographical region for Advanced Video Coding (AVC) Market
Asia Pacific region is identified as the fastest growing market for AVC globally with a projected CAGR of around 5.5% during 2023-2030. This impressive growth can be attributed to increasing adoption of AVC in consumer electronics, automotive infotainment systems and rapid deployment of 5G networks across major APAC countries. Emerging economies like India and Indonesia offer huge untapped market potential for AVC solutions. Continuous government support for digital infrastructure development and rising internet penetration are further strengthening the region's position as the pivot of global AVC industry growth. Leading AVC chip manufacturers are expanding their presence in APAC through partnerships with local OEMs to tap the high-growth opportunities.
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