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The Advanced Video Coding (AVC) market has been gaining major traction over the past few years owing to the rising demand for high-quality video content across entertainment, corporate, healthcare, and surveillance applications. AVC provides superior video compression capabilities and supports resolutions up to 4K, thereby enabling the transmission and storage of high-definition video using less bandwidth and storage space. The widespread proliferation of Ultra HD displays and smart homes integrated with surveillance cameras has fueled the adoption of AVC solutions.
The Global Advanced Video Coding 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) 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 players are focusing on developing more efficient AVC solutions to support higher video resolutions such as 8K.
The rising popularity of video streaming platforms and video communication apps present significant opportunities for AVC providers. The AVC standard allows video streaming at reasonable data rates even over bandwidth-constrained networks. Several OTT media services are integrating AVC to provide superior playback quality.
The integration of AI and machine learning capabilities with AVC encoders/decoders enables advanced video analytics for applications such as smart surveillance. Features such as facial detection, object recognition, and anomaly detection can help boost security and productivity. Video transcoding solutions based on AVC with GPU acceleration are driving efficiencies in video production workflows.
Market drivers
The growing utilization of advanced technologies such as 4K and 8K displays as well as Ultra HD video content is a major driver for the AVC market. As video resolutions increase multi-fold, advanced video compression becomes indispensable to manage network bandwidth usage and storage overhead on end-devices. The proliferation of smart home devices integrated with cameras for security and other applications has further popularized the need for high-quality, low footprint video communication and storage solutions based on AVC. Surging investments by tech giants in video streaming platforms will continue driving the demand for AVC in the coming years.
Current challenges in the Advanced Video Coding (AVC) Market
The AVC market currently faces challenges related to incorporating newer formats and standards. While AVC has been the predominant standard till date, newer formats like HEVC and AV1 are gaining traction. Transitioning to newer formats requires significant investments in R&D and infrastructure upgrade. This leads to hesitancy among vendors and consumers. There are also ongoing patent issues related to key AVC technologies which creates confusion. Further, maintaining compatibility with legacy systems and ensuring a smooth upgrade path is challenging. Growing concerns around data privacy and security also need to be effectively addressed as more devices get networked.
SWOT Analysis
Strength: Well established and widely adopted standard. Very high level of device and network support globally.
Weakness: Getting outdated compared to newer standards. High licensing costs related to key patents.
Opportunity: Transition to 5G networks and growth in OTT video consumption. Increasing device connectivity in automotive and IoT domains.
Threats: Rapid adoption of HEVC and AV1 formats eats into market share. Delays in network upgrades hamper latest features.
The geographical region hosting the largest share of the AVC market in terms of value is North America. This is attributable to high device penetration and widespread availability of high-speed networks. Asia Pacific follows closely and is growing at the fastest pace driven by increasing urbanization, digitalization, and spend on digital infrastructure in major economies like China and India.
Europe accounts for a sizable share of the AVC market currently due to high disposable incomes and tech readiness. However, growth is pegged to be moderate compared to emerging markets. The Middle East and Africa region is witnessing strong uptake backed by government investments to bridge the digital divide as well as content localization driving greater adoption of streaming platforms. Latin America is poised to emerge as an important regional market for AVC over the forecast period underpinned by expanding middle class and rising smartphone penetration.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
