The rising use of AI and the automation process promises to influence the production and distribution of video making. Video creation tool is capable of online shooting, editing, choosing and uploading images, making the ready product quicker, and engaging more clients. It enables the user to concentrate more on the creative aspect by purchasing reduced production time, contributing to high-quality content.
Video editing is a vital component in the creation process as it is used in post-production design and editing raw footage in digital file formats. It helps in creating attractive visual content to benefit marketing and lead generation prospects. Significant growth in the video creation tool market is anticipated in the coming years due to its potential in digital marketing.
Video creation involves several creation tools that help in manipulating images through templates and GIFs. In addition, the growing adoption of video marketing by SMEs to gain a competitive advantage is expected to boost the demand for video creation tool during the forecast period. It helps in building brand awareness, increase online presence, and drive social media engagement, which, in turn, humanizes a brand, builds trust and helps in creating sales for the SMEs.
The video creation tool market was valued at USD 426.5 million in 2019 and is projected to reach USD 776.2 million by 2029, registering a CAGR of 8.9%.
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The unprecedented increase in the number of COVID-19 cases across all the economies and subsequent lockdown of various leading providers of technology services and solutions have limited the market growth. The rapid decline in revenue due to non-existent demand from media and production houses limited their spending on the acquisition of additional technologies. Coronavirus is compelling the video creation tool market companies to provide consumers with free trial time deals in order to attract further sales. With an increase in the number of online entrepreneurs, emerging you-tubers, and social media influencers creating online content due to the COVID-19 lockdown, businesses are extending their free trial period offers. Since big and small companies are under pressure to stand out in the market, the best video creation tools in the industry can be selected wisely in order to promote their business.
The cloud segment held the largest market share in 2019 and is expected to grow with the highest CAGR of 9.3% during the forecast period. Cloud deployment type offers various benefits, such as better flexibility, lower costs, and enhanced security. On the other hand, on-premise deployment takes a long time due to the requirement of robust hardware, network, and software. Additionally, for any business institution that faces security concerns regarding video creation, on-premise is the ideal solution as it offers customized security.
The large organization segment holds the highest market share. The SME segment, on the other hand, is expected to grow with the highest CAGR of 9.5% during the forecast period. The overall market space has grown competitive on account of it being consumer-centric. This has prominently impacted SMEs as they require being more active in promoting and presenting their business to consumers as compared to well-established large organization sizes. Effective video marketing is essential for SMEs to operate well and emerge as prominent online entities, which further widens the scope of video creation tools in the segment.
The commercial segment dominates the market as it is one of the largest users of video creation tools. The commercial segment consists of the real estate, tourism, e-commerce, and gaming segment, which could benefit from video marketing. In contrast, in the personal segment, the use of video marketing as a model for online promotions considerably widens the scope of video creation tools. For instance, most individual speakers, musicians, and entertainers, such as stand-up comedians, have YouTube clips, which direct viewers towards more event-related content.
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North America is estimated to hold the largest share in the global video creation tool market, owing to the widespread adoption of digital content creation tools and services integration of social media with video creation tools. Many small, medium, and large Organization Sizes are shifting towards new and advanced technologies and adopting a multitude of business strategies, including video marketing. The demand for video creation tools is expected to trail the rapidly growing demand for social media video marketing in the region. Further, according to the Digital Marketing Institute, in 2018, 73% of U.S. citizens were YouTube consumers, and according to Google, almost 50% of internet users in the U.S. look for videos pertaining to a product or service before going to the store. In the U.S., the digital video marketing industry grosses more than USD 135 billion. Furthermore, the strong presence and penetration of key vendors including Magisto, GoAnimate, and Animoto is also propelling the growth of the North America video creation tool market.
Asia-Pacific is the fastest-growing region in the video creation tool market due to the rapid media consumption and growing automation and digitization. It is expected to grow with a CAGR of 9.3% during the forecast period. Online video consumption is skyrocketing in India, China, and Malaysia. In addition, Asia-Pacific represents a lucrative opportunity for digital marketing and, in particular, programmatic video advertising.