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The Advanced Video Coding (AVC) market provides a superior video compression standard for delivering high definition video content through digital mediums. AVC encodes video data in fewer bits compared to other codecs, thereby allowing high resolution videos such as 4K and 8K to be transmitted over constrained bandwidth conditions. With the growing demand for ultra-high definition content from consumers, OTT platforms are increasingly adopting 4K and 8K technologies which is driving the need for optimized codecs like AVC.
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) 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.
The key opportunities in the AVC market include growing adoption in OTT platforms and smart TVs as well as increasing usage for high resolution cameras. The technological advancements like 4K and 8K video standards are accelerating the need for advanced video codecs like AVC for delivering high quality video experience.
Technological advancements in video standards such as 4K and 8K now allow for ultra-high definition video streaming and production. This widespread adoption of 4K and 8K technologies has increased the need for high-performance video codecs that can efficiently compress these large video files for streaming, storage and transmission over bandwidth-constrained mediums. AVC has emerged as one of the preferred codecs for 4K and 8K due to its advanced encoding capabilities.
Market drivers
Increasing demand for ultra-high definition 4K and 8K video content from consumers is a major market driver for advanced video codecs like AVC. As 4K/8K technology adoption grows in smart TVs, cameras and projectors, the need for high-performance video compression standards will continue to rise. Another major growth driver is the increasing OTT video consumption over mobile networks which necessitates optimized video delivery. AVC enables efficient HD/UHD video streaming under constrained network conditions.
Current Challenges in Advanced Video Coding (AVC) Market
The Advanced Video Coding (AVC) market faces numerous challenges currently. One of the major challenges is the emergence of newer and more efficient video compression standards like HEVC and VVC that offer significantly higher compression ratios compared to AVC. This is forcing companies to transition to the newer standards to offer better quality video streaming and storage at lower bitrates. Secondly, with increased video consumption over smartphones and tablets, optimizing AVC codec for lower power devices still remains a challenge. Integrating the codec with various mobile platforms efficiently while maintaining quality and high compression is an area requiring more research. monetizing user-generated content like videos on social networks without infringing copyrights is also a hurdle. With more interest in immersive media using VR and AR, adopting AVC to new media formats poses implementation difficulties. Managing growing volumes of video data with limited bandwidth also affects user experience requiring continual codec upgrades.
SWOT Analysis
Strength: AVC is a widely deployed and mature standard supported by most hardware and software. It offers high picture quality and excellent compression for HD videos.
Weakness: Newer standards like HEVC and VVC surpass AVC in terms of compression efficiency. Optimization for lower power devices remains a challenge.
Opportunity: Growth in OTT video consumption on mobile presents an opportunity to further optimize AVC for smartphones and tablets. Adopting the codec for new media formats like VR/AR videos also provides scope.
Threats: Rapid uptake of HEVC/VVC poses a threat as they make AVC obsolete for future applications. Unavailability of royalty-free encoder/decoder also restricts its adoption in some platforms.
Geographical Regions
In terms of value, the North American region currently dominates the Advanced Video Coding market accounting for over 35% share, led by massive video consumption in the US. Asia Pacific follows as the second largest region with China and India driving volumes supported by affordable mobile broadband and rising internet users. Europe is another major revenue generator for AVC aided by strong demand for OTT services across countries. Japan also has a sizeable market backed by early 4K/8K adoption and focus on innovative use cases around IPTV and mobile.
Fastest Growing Region
The Asia Pacific region is poised to be the fastest growing market for Advanced Video Coding over the forecast period. This is attributable to the exponential growth in online video streaming in developing economies like China and India supported by increasing mobile and broadband penetration. Proliferation of low-cost Android smartphones coupled with affordable data plans is fueling video consumption on mobile devices. AVC being widely implemented on mobile SoCs continues to drive its adoption. Countries moving up the digital transformation curve also present new opportunities around IPTV, videoconferencing and surveillance applications thus ensuring strong revenue growth.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
