Trusted Business Insights answers what are the scenarios for growth and recovery and whether there will be any lasting structural impact from the unfolding crisis for the Video Streaming market.
Trusted Business Insights presents an updated and Latest Study on Video Streaming Market 2020-2029. The report contains market predictions related to market size, revenue, production, CAGR, Consumption, gross margin, price, and other substantial factors. While emphasizing the key driving and restraining forces for this market, the report also offers a complete study of the future trends and developments of the market. The report further elaborates on the micro and macroeconomic aspects including the socio-political landscape that is anticipated to shape the demand of the Video Streaming market during the forecast period (2020-2029).
It also examines the role of the leading market players involved in the industry including their corporate overview, financial summary, and SWOT analysis.
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Report Overview: Video Streaming Market
The global video streaming market size was valued at USD 31.59 billion in 2020 and is projected to grow at a compound annual growth rate (CAGR) of 19.2% from 2021 to 2027. Innovations, such as blockchain technology and Artificial Intelligence (AI), to improve video quality are expected to increase market growth. AI is playing an essential role in editing, cinematography, voice-overs, scriptwriting, and several other aspects of video production and upload.
In the recent past, the popularity of such platforms over broadcast media, such as YouTube and Netflix, have increased considerably. Moreover, the rapid adoption of mobile phones owing to the growing popularity of social media platforms and other digital mediums for branding and marketing is anticipated to further fuel the growth.
The growing adoption of cloud-based solutions to increase the reach of video content is influencing the market growth positively. This trend is majorly observed in the countries of North America and Europe. Furthermore, ongoing innovations and technological advancements are expected to meet the growing expectations for exceptional video quality, performance, and security. For instance, in April 2019, Akamai Technologies spotlighted its initiatives and innovations in delivering digital experiences of high-quality at the 2019 NAB Show (U.S.). The company showcased its advancement in live and on-demand media service, including cloud wrapper, direct connect, cloud interconnects, VPN & DNS proxy detection, and token authentication. Also, the high adoption of digital media across various industry verticals has led to the populations inclination towards different streaming solutions and services. For instance, in November 2019, Apple Inc. entered the online video cascading industry by launching its TV+ service. In June 2019, Wowza Media Systems, LLC announced the complete range of professional services for video-related solutions. In March 2019, Google, the subsidiary of Alphabet Inc., unveiled its cloud-based gaming console, ˜Yeti, which features game streaming service along with gaming hardware.
Technical advancements and a growing number of service providers in this domain pose a threat to the standalone streaming giants in the market. The streaming television space seems to be the fastest-growing sector for TV service providers to grab revenue share from existing key players, such as Netflix. For instance, in July 2019, AT&T Intellectual Property launched its new streaming service called AT&T TV. In April 2018, Amazon.com, and Google partnered to bring official YouTube apps on Amazons Fire TV. These complementary services for television and other entertainment content are anticipated to threaten the existing key players in the market.
In the education and academic sector, videos can be effectively used to enhance the learning process, such as visual recordings of webinars and courses. Visual recordings have a powerful impact on the ability of students to retain information. Therefore, nowadays, universities, schools, and colleges are creating multimedia content and delivering it in the form of video presentations. Thus, making use of technology to impart knowledge effectively. Several factors, such as increasing consumption and easy access to such content, increasing demand for mobile devices, and the availability of internet are positively influencing the adoption of these services in the educational sector.
COVID – 19 Impact Insights: Video Streaming Market
The COVID-19 (Coronavirus Disease) pandemic has placed more than 1/4th of the worlds population under lockdown. This has resulted in increased demand for online streaming and entertainment services. The video streaming services have experienced a rise of around 10% in viewership during the lockdown. Major platforms, including Netflix, Amazon Prime Video, YouTube, and Disney+ have registered a spike in the viewership worldwide. For instance, in March 2020, Netflix registered an increase of more than 50% in the number of first-time installations of its mobile application in Italy and more than 30% of that in Spain.
Individuals across the globe are using various live streaming platforms to get recent updates on the status of COVID-19, for entertainment, to socialize and play games. Due to the rise in the demand for digital content from various sources, different live streaming platforms, including Twitch, YouTube Live, Facebook Live, etc. have gained increasing popularity. For instance, in March 2020, the viewership of Twitch increased by 31%.
Streaming Type Insights: Video Streaming Market
The live streaming segment accounted for the largest revenue share of over 60% in 2019. This is attributed to surging demand for digital media devices coupled with faster internet helping consumers to access media content remotely. Furthermore, factors, such as ad-free content, mobile viewing, analytics tracking, abundant content use, immense audience potential, and high-quality streams, are also driving the segment growth.
The non-linear segment is also expected to demonstrate healthy growth over the coming years. Factors that fuel the growth of this segment include watch-time feasibility, no buffering, large capacity, and live pause, among others. Video-on-demand is also expected to become mainstream in all age groups with both the streaming types.
Solution Insights: Video Streaming Market
The OTT-based segment accounted for the largest revenue share of over 40% in 2019. It is owing to a feature that OTT-based solutions deliver film and TV content through the internet without the need for users to subscribe to a traditional cable or pay-TV services. The segment is also expected to register the fastest growth over the forecast period owing to the growing demand for improved automation of business processes and the availability of broadband infrastructure. Emerging trends in OTT, such as hybrid monetization models, rising demand for digital original content, and content fragmentation due to intensive competition, are expected to contribute to the segment growth.
In 2019, the pay-TV segment held a notable revenue share as its demand has grown in countries, such as China, India, Mexico, and Brazil. Moreover, customers are shifting their preference to OTT services due to the increased programming expenses. The increasing availability of unlimited wireless data plans and public wi-fi has boosted the growth of this segment. For instance, HBO Now is the online streaming platform launched by Home Box Office, Inc., which has enabled an online view of HBO shows without a cable subscription.
Platform Insights: Video Streaming Market
The smartphones and tablets accounted for the largest revenue share of over 31% in 2019. This is attributed to the easy accessibility of the internet, increasing disposable income, better standards of living, and changing lifestyle. The smart TV segment is also expected to register healthy growth over the forecast period as smart TV offers a comprehensive option of TV channels along with video streaming services, such as Netflix.
Mobile/tablets allow trouble-free live streaming, owing to the abundance of reliable internet services. Due to easy access and portability, smartphones and tablets are more likely to be preferred for online content watching. However, the availability of several video streaming applications for television has drawn attention towards the smart TV segment, such as YouTube TV, Hulu, DirectTV Now, PlayStation Vue, and Sling TV. Also, applications for organizing the TVs content, such as PLEX, are anticipated to boost the growth of this segment as they provide the ability to play any compatible media content on a smart TV.
Service Insights: Video Streaming Market
The training & support accounted for the largest revenue share of more than 37% in 2019. The managed services segment is estimated to have the fastest CAGR over the forecast years. Managed services help combine broadcast and OTT solutions into one online video management solution to provide a personalized experience to viewers. This advantage is projected to bode well for segment growth.
Managed services deliver highly evolved media services to the viewers, helping them achieve a better quality of content with higher monetization. These services include localization & access services, digital packaging & fulfillment, creative video services, and compliance & metadata services, among others. Moreover, it combines intelligent content distribution capabilities for third-party and direct OTT streaming service providers.
Revenue Model Insights
The subscription model accounted for the largest revenue share of over 43% in 2019 and will expand further at a steady CAGR from 2020 to 2027. This is due to an increase in the number of subscribers across the globe. The subscription model offers streaming of online videos with an access fee or a subscription. For instance, Netflix offers various monthly subscription plans or programs. The advertising segment-based solution operates on the hosting of advertisements.
Advertising is one of the common forms of monetizing streaming videos where the revenues are generated from the advertisers. Since advertisers pay a massive amount for streaming their ads on the on-demand streaming platforms owing to the marketing requirements, the segment has collected a significant amount of share in the market. However, subscription models have gained momentum due to the wide variety of video content as well as original content offered by the OTT providers, such as Netflix Originals and Prime Originals.
Deployment Type Insights: Video Streaming Market
The cloud segment accounted for the largest revenue share of more than 57% in 2019. The advancements in cloud computing have revolutionized video streaming and enabled the creation of platforms, such as YouTube and Netflix. The cloud-based segment in the Asia Pacific region is expected to grow at the highest CAGR in the coming years.
Since the cloud-based deployment is capable of handling more substantial data content along with providing a better viewing experience, many companies prefer this type over on-premises. Also, cloud-scaling helps in increasing the bandwidth and dealing with buffering and latency issues. Since most of the enterprises dont have the networks and infrastructure capable of handling heavy traffic in online streaming, there is a huge demand for cloud-based deployment in the streaming of videos.
User Insights: Video Streaming Market
The consumer segment accounted for the largest revenue share of 51.2% in 2019. This is due to the rise in the viewership of video-on-demand and live streaming services from the media and entertainment sector. Increasing mobile subscriptions and the adoption of connected devices, especially smartphones, are expected to contribute to the segment growth.
The enterprise segment is expected to register the fastest CAGR of 20.0% over the forecast period 2021-2027. This growth is attributed to the increasing use of video streaming services by enterprises for training and consulting. Technological advancements, such as superior video codec, web-based real-time communication, captioning, indexing, and transcoding and aggregation, are expected to spur the demand for these services in this user segment. The technology improves the communication efficiency in an organization through measures, such as on-demand video, and flexibility in remote working conditions, which will drive the segment further.
Regional Insights: Video Streaming Market
North America accounted for the largest revenue share of 39% in 2019, majorly due to the rapid growth of cloud-based streaming services. The European regional market also held a notable share and is expected to witness steady growth over the coming years. Asia Pacific is projected to demonstrate the highest CAGR over the forecast period, attributed to the increasing use of mobiles and tablets, rapid technological advancements, and the popularity of online streaming.
Over-the-top (OTT) solution has transformed the way of content consumption among viewers in the Asia Pacific region. Incumbent telecommunication providers and multichannel operators in this region have also proactively pursued the business innovation and advancement using video streaming for advanced marketing techniques. With the fastest growing broadband internet population, operators in Southeast Asia have expanded the monetization opportunities by offering video streaming multichannel services along with fixed-mobile packages. These initiatives taken by the service providers are contributing to the growth in the Asia Pacific region.
Key Companies & Market Share Insights: Video Streaming Market
Companies are focusing on increasing the customer base with the help of several strategic initiatives, such as collaborations, M&A, and partnerships. For instance, in July 2019, Hive Streaming, a Sweden-based enterprise video distribution company, partnered with the U.S. based software company, Kaltura, Inc., to provide premium video delivery capabilities. Under this partnership, the data visualization solutions of Hive Streaming are joined with the broad network optimization offering of Kaltura, Inc., including Kaltura eCDN along with additional network optimization and video delivery solutions. This collaboration has enabled high-quality live and non-linear video content. Some prominent players in the video streaming market include:
Key companies Profiled: Video Streaming Market Report
- Akamai Technologies
- Amazon Web Services, Inc.
- Apple Inc.
- Cisco Systems, Inc.
- Kaltura, Inc.
- Netflix, Inc.
- International Business Machine Corporation
- Wowza Media Systems, LLC
- Hulu, LLC.
This report provides forecasts for revenue growth at the global, regional, and country levels and analyses of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For this study, Trusted Business Insights has segmented the global video streaming market report based on streaming type, solution, platform, service, revenue model, deployment type, user, and region:
Streaming Type Outlook (Revenue, USD Billion, 2016 – 2027)
Solution Outlook (Revenue, USD Billion, 2016 – 2027)
- Internet Protocol TV
- Over-the-Top (OTT)
Platform Outlook (Revenue, USD Billion, 2016 – 2027)
- Gaming Consoles
- Laptops & Desktops
- Smartphones & Tablets
- Smart TV
Service Outlook (Revenue, USD Billion, 2016 – 2027)
- Managed Services
- Training & Support
Revenue Model Outlook (Revenue, USD Billion, 2016 – 2027)
Deployment Type Outlook (Revenue, USD Billion, 2016 – 2027)
User Outlook (Revenue, USD Billion, 2016 – 2027)
- Corporate Communications
- Knowledge Sharing & Collaborations
- Marketing & Client Engagement
- Training & Development
- Real-Time Entertainment
- Web Browsing & Advertising
- Social Networking
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