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Advanced Video Coding (AVC), also known as H.264, is a video compression standard capable of delivering better video quality at lower bit rates compared to its predecessors. AVC is widely adopted across different application areas and offers benefits including improved compression efficiency, higher resolution and quality, and use of less bandwidth.
The global Advanced Video Coding (AVC) Market is estimated to be valued at US$ 3.46 Bn in 2023 and is expected to exhibit a CAGR of 4.1% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Key Trends:
Growing usage of mobile devices has been a key driver of the AVC market over the last few years. The increasing penetration of smartphones, tablets and other portable devices has increased the consumption of online video content significantly. Since mobile screens are smaller compared to desktops, efficient video compression becomes critical for delivering good quality video over mobile networks that have comparatively lower bandwidth.AVC’s superior compression abilities allow high resolution video streams to be delivered seamlessly over mobile networks, thereby enhancing the user experience. This has led to widespread adoption of AVC/H.264 as the preferred video format across mobile apps and mobile browsers, driving continuous demand from the mobile device segment.
SWOT Analysis
Strength: AVC allows for higher video quality at lower bit rates compared to other video codecs. It supports a wide range of applications and devices due to its flexibility and adaptability.
Weakness: AVC is an older video codec which has limitations in supporting higher resolution videos like 4K and above. It faces competition from newer and more capable video codecs.
Opportunity: Growing adoption of OTT platforms and increase in video streaming is driving the need for high quality video delivery. AVC still finds applications in mobile streaming and low to mid-end devices.
Threats: Newer video codecs like HEVC and VVC promise even higher compression capabilities at lower bit rates. Transition to these newer codecs can reduce the market for AVC over time. Strategic partnerships between competitors also pose threat.
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. The major players are focusing on introducing more capable AVC solutions and partnerships to strengthen their hold in the market.
Regional analysis – North America is expected to dominate the AVC market during the forecast period. This is attributed to early adoption of advanced technologies and presence of leading players. Asia Pacific is anticipated to grow at the fastest pace owing to rapid digitalization and increasing internet penetration in the region.
Key Takeaways
The global Advanced Video Coding (AVC) market is expected to witness high growth, exhibiting a CAGR of 4.1% over the forecast period, due to increasing popularity of OTT video streaming platforms. AVC still meets the requirements of low to mid-end devices and is optimized for mobile networks.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
