Video Creation Tool Market

Market Overview

The global video creation tool market size was valued at USD 599.8 million in 2023 and is projected to reach  USD 1,292.0 million by 2032, registering a CAGR of 8.9% during the forecast period (2024-2032). The global video creation tool market share is driven by rising demand for user-friendly, feature-rich platforms, as businesses and individuals recognize the importance of video content in effective communication and marketing initiatives.

A video creation tool is a software application or platform that makes creating, editing, and customizing videos easier. It often includes features like video editing, special effects, animations, and the integration of multimedia elements, allowing users to create professional-looking video content for various purposes, such as marketing, entertainment, or communication.

The global video creation tool market is expanding rapidly, driven by rising demand for adaptable video content across several industries. With increased online video usage, businesses, marketers, and content providers understand the critical importance of videos in engaging people. The industry is distinguished by user-friendly tools with intuitive interfaces, cloud-based solutions, and integrated AI features catering to specialists and non-experts. The rising use of video marketing methods increases demand, encouraging innovation and rivalry among industry players.

Highlights

Cloud generates the highest revenue share by deployment.

Large Enterprises influence market growth based on organization.

Commercial is the most common application of the market.

Market Dynamics

Global Video Creation Tool Market Drivers:

Expanding Social Media Influence

The growing dominance of social media platforms has dramatically boosted demand for video-producing tools. Visual content, particularly videos, is prioritized on social media channels because it has a higher engagement and shareability rate than other media types. TikTok, Instagram, and Facebook all prioritize video content, pushing users and companies to make visually beautiful and entertaining videos. Short-form videos, in particular, have grown in popularity, necessitating the development of video creation tools that allow users to create content specifically designed for these platforms. Hubspot.com predicts that the most popular social media platforms in 2023 will be Facebook (69%), YouTube (57%), Instagram (45%), TikTok (33%), and Twitter (30%). As of December 2023, Facebook had 3.03 billion monthly active users (MAUs), making it the world's largest social media site. In the second quarter of 2023, Facebook had 3.05 billion monthly active users. 

In comparison, Instagram has 2 billion monthly active users as of July 2023. Instagram's emphasis on a superior mobile experience and visually appealing content has made it popular among the younger generation, resulting in greater user engagement. Cisco estimates that by 2022, online videos will account for more than 82% of all consumer internet traffic. As of 2023, Facebook videos are seen over 4 billion times daily, with around 100 million hours of video streamed daily. This equates to more than 6 billion minutes, 4.1 million days, or 11,000 years of information. TikTok had 3.5 billion downloads as of September 2023, a 79.1% growth over 2020. In the first quarter of 2023, TikTok was downloaded 770 million times worldwide. In the third quarter of 2023, app downloads worldwide reached 272.7 million.

Furthermore, combining video-producing tools and social media platforms has changed how people and organizations interact, engage, and market themselves online. The mutually beneficial interaction between video creation tools and social media platforms fuels innovation and defines the future of digital content creation and consumption. As a result, the Video Creation Tool Market trend will vary during the forecast period.

Global Video Creation Tool Market Restraints:

High Competition and Saturation

The video creation tool industry is crowded with vendors offering similar features, ranging from established enterprises to startups. Notable players include Adobe Premiere Pro, Final Cut Pro, iMovie, Filmora, and internet platforms such as Canva, Animoto, and InVideo.  Statista says the number of available apps in the "Photo & Video" category on the Apple App Store and Google Play Store has steadily increased. As of February 2024, the Google Play Store offered 3.718 million apps for Android users. People are anticipated to download 29.1 billion photo and video applications by the end of 2023, a 107% increase from the 14 billion downloads reported in 2019. The competitive landscape is also reflected in the abundance of online video content creation tools catering to various consumer wants and preferences.

In addition, the market is fragmented, with several tools catering to specific niches, such as professional video editing, social media content generation, and user-friendly templates for novices. This fragmentation might make it difficult for consumers to find and select the tool that best meets their needs. Business of Apps found that the video editing app industry is diverse, with apps catering to various skill levels, features, and pricing structures. This diversity might cause user confusion and hinder market consolidation.

As a result, new entrants face significant challenges in obtaining market share due to existing firms' dominance and the necessity for substantial marketing efforts to break through the clutter.

Global Video Creation Tool Market Opportunity:

Expanding E-Learning and Remote Work Trends

The growing popularity of online learning platforms provides an opportunity for video creation tools to serve educators, trainers, and content creators seeking to create interesting educational videos. Coursera, Udemy, and Khan Academy have all seen substantial development, with teachers and institutions relying on video content for effective information transmission. Coursera, one of the world's largest online learning platforms, had 136 million learners in 2023, including 17 million new ones. In the third quarter of 2023, Coursera added 6.5 million new learners, the most since 2020.

Furthermore, video creation tools can help to make instructional content more accessible and adaptable, fitting various learning styles and allowing students to consume knowledge at their own pace. Generating on-demand video lectures or tutorials enables students to review material as needed, resulting in a more flexible and individualized learning experience. According to a Noodle poll, 73% of students believe online courses are an excellent alternative to on-campus education, demonstrating the growing acceptability and desire for flexible learning options.

Moreover, as remote work becomes more prevalent, video creation tools have the potential to facilitate corporate training and remote collaboration by allowing for the creation of training modules, onboarding films, and collaborative projects. Companies use platforms such as Zoom, Microsoft Teams, and Slack for remote communication, and video creation solutions can supplement these platforms by supplying pre-recorded instructional content. According to a Gartner poll, 88% of firms worldwide required or encouraged workers to work from home in response to the COVID-19 epidemic, underlining the importance of remote collaboration and training solutions.

Regional Analysis

North America Dominates the Global Market

The global video creation tool market analysis is conducted in North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

North America is the most significant global video creation tool market shareholder, estimated to grow at a CAGR of 8.7% over the forecast period. North America is expected to have the highest share owing to the extensive adoption of digital content creation tools and social media integration into video creation tools. Many small, medium, and big organizations are transitioning to new and advanced technology and implementing various business techniques, including video marketing. Demand for video creation tools is projected to lag behind the region's fast-expanding social media video marketing demand. Furthermore, as of May 2023, the United States had 246 million active YouTube users. This makes the United States the second largest YouTube user country, trailing only India, which has 467 million subscribers.

In addition, according to Google, over half of internet users in the United States search for videos about a product or service before coming to the store. According to Statista, digital video advertising spending in the United States is predicted to reach USD 78.5 billion by 2023, more than doubling in 2019. Statista estimates that the digital video advertising will reach USD 120 billion by 2024. Furthermore, the strong presence and penetration of key manufacturers such as Magisto, GoAnimate, and Animoto are driving the growth of the North American video creation tool industry.

Asia-Pacific is anticipated to exhibit a CAGR of 9.3% over the forecast period. Asia-Pacific is the fastest-growing video creation tool market, owing to rising media consumption and increased automation and digitization. It is predicted to grow at a CAGR of ~9.3% over the forecast period. Online video consumption is growing in India, China, and Malaysia. In addition, Asia-Pacific is a valuable market for digital marketing, particularly programmatic video advertising.

Furthermore, as the region's SMEs and social media users develop, so does the demand for high-quality video content. Moreover, the number of AI startups in the area has increased significantly in recent years, as has the utilization of AI tools. For example, Singapore alone boasts over 350 AI startups, whereas China's AI penetration is expected to account for 25% of the country's GDP in 2023.

The European region has various users, including small and large organizations, content creators, and people looking for effective video creation tools. In September 2023, Meta's Facebook had more than 79% of the social media market in Europe, while Instagram accounted for 9.16% of website visitors in Europe.

Additionally, according to Statista, ad spending on British social media will reach about USD 10 billion in 2023, accounting for approximately 15% of the country's marketing budget. Regarding segment growth, France's value was 10% in 2022, while the UK achieved slightly more than 7% in the same year.

Segmental Analysis

The global video creation tool market is segmented based on deployment mode, organization, and application.

The market is further segmented by deployment mode into On-Premise and Cloud.

Cloud generates the highest revenue share in the market.

Cloud

Cloud deployment entails hosting the video-making tool on remote servers and accessing it via the Internet. This mode provides scalability, flexibility, and cost-effectiveness by allowing users to access the tool from any internet-connected device. Cloud deployment eliminates the need for on-site infrastructure maintenance, which reduces upfront costs and allows for automatic updates. It promotes communication among remote workers and ensures data accessibility. However, worries about data security and reliance on internet connectivity may be considered. Cloud deployment is becoming increasingly popular due to its ability to adapt to changing business needs. It is an attractive option for enterprises seeking agility and efficiency in video content development.

On-Premise

On-premise deployment is the classic way the video creation tool software is installed and run on the client's internal servers and computer equipment. This mode gives enterprises complete control over their software and data, resulting in more customization and security.

Based on organization, the market is fragmented into Large enterprises and SMEs.

Large Enterprises influenced the market growth.

Large Enterprise

Large organizations, generally distinguished by size, resources, and personnel, use video creation solutions to meet various demands. These firms often have complex communication and marketing plans that necessitate sophisticated video material to communicate with their large consumer base or internal stakeholders. Video creation platforms for large organizations frequently provide advanced features, scalability choices, and strong collaboration capabilities. Large businesses may prioritize solutions that interface easily with existing systems, give performance metrics, and enable numerous user access levels. These technologies are critical in improving brand visibility, internal training, and corporate communication strategies amid the vast terrain of huge enterprises.

SMEs

Small and medium-sized enterprises (SMEs) find video creation tools helpful in establishing an online presence, selling products or services, and interacting with their target audience. Video creation solutions for small and medium-sized businesses frequently stress user-friendly interfaces, cost, and primary content creation and editing features. These tools are designed to meet the specific needs of smaller teams or individual users inside SMEs, allowing them to generate professional-looking movies without the complexity of more advanced solutions.

By application, the market can be further bifurcated into Commercial and personal.

Commercial is the most common application of the market.

Commercial

Commercial applications are the usage of video-producing tools for business or professional objectives. This area covers a wide range of applications in the corporate and commercial landscape. Commercial users of video creation tools include businesses, marketing agencies, content creators, and organizations of all sizes looking to use video content for promotional, advertising, training, or communication purposes. Advanced editing capabilities, branding possibilities, collaboration tools, analytics, and integrations with marketing platforms are some of the features that commercial video creation solutions prioritize. 

Personal

The personal application sector includes using video-producing technologies for personal and noncommercial purposes. Individuals create content for personal blogs, vlogs, social media, family events, and artistic expression. Video creation tools for personal usage frequently stress user-friendly interfaces, simplicity, and a concentration on basic editing skills.

Recent Developments

• January 2024- Introducing Animaker AI, the future of AI. With Animaker 2.0 and Animaker 3.0, the firm introduced the world to innovative capabilities that allowed anyone to create studio-quality in less than an hour.
• October 2023- Vyond released the latest version of their award-winning video creation tool. This version integrates the potential of generative AI into Vyond's existing workflows, where and when it is most needed. Any video element imaginable is now available with a single button click.