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The advanced video coding (AVC) market is growing steadily on account of enhanced multimedia sharing and integration of AI and machine learning capabilities. The AVC helps compress digital video while preserving quality, making it ideal for today’s data-intensive video applications.
The AVC market advanced video coding industry provides various advantages such as higher resolution and frame rates for improved viewing experience along with smaller file sizes for efficient storage and transmission. There is growing usage of AVC in various applications including smartphones, television broadcasting, video conferencing, digital media etc. owing to increasing demand for high quality video at low bandwidth. Additionally, integration of AI and machine learning capabilities in AVC is further enhancing capabilities around automated video processing, editing and analytics.
Key players operating in the advanced video coding 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 players are focusing on developing more efficient AVC solutions to support advanced video applications such as 4K and higher resolution videos as well as virtual reality.
The demand for AVC is growing significantly owing to the proliferation of OTT platforms and surge in online video consumption. As per recent studies, total internet video traffic grew multiple folds in the last five years alone. Growing preference for high quality video content is further driving the need for more efficient AVC solutions. Additionally, live video streaming is emerging as a major use case requiring enhanced AVC infrastructure.
Geographically, the AVC market is witnessing strong growth in Asia Pacific region led by countries like China and India. This is attributable to rising mobility, improving connectivity and growing digital ecosystem in the region. Many AVC vendors are also expanding their presence across Asia to tap the market potential. North America currently dominates the global AVC landscape owing to widespread adoption of advanced video technologies for various applications among both enterprises and consumers in the region.
Adoption of artificial intelligence is a key trend being witnessed in the advanced video coding market. AI capabilities are being increasingly integrated with AVC solutions to enable features like intelligent video processing, analytics and editing. This helps automate various video operations while also enhancing video quality. Integration of AI and machine learning is expected to be a major growth driver for AVC market over coming years.
Porter’s Analysis
Threat of new entrants: New companies may find it difficult to establish themselves in the market due to presence of large players and requirement of high capital investment.
Bargaining power of buyers: Buyers have low bargaining power due to lack of substitute products and differentiation offered by existing players.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of component suppliers and differentiation in capabilities.
Threat of new substitutes: Substitutes such as H.265 and HEVC pose minimal threat currently due to lack of widespread adoption and support for new codecs.
Competitive rivalry: Intense competition exists among existing players to gain market share and create entry barriers for other players through continuous technological advancements and product differentiation.
Geographical regions where market in terms of value is concentrated currently include North America and Europe due to high penetration of advanced video devices and presence of leading market players. Asia Pacific region is expected to witness fastest growth in the AVC market owing to rising disposable incomes, growing electronics industry and increasing adoption of advanced video technologies in the region over the forecast period.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
