Video Streaming Market

Market Overview

The global video streaming market size was worth USD 59.14 billion in 2021. It is expected to be valued at USD 321.5 billion by 2030, growing at a CAGR of 20.7% during the forecast period (2022–2030).

Streaming is any live or recorded media content provided to viewers' computers and mobile devices over the internet and is played back in real-time. Typical forms of streaming media include podcasts, webcasts, movies, television shows, and music videos. Video streaming transmits video files to a client from a domain controller. Video streaming enables people to see online videos without having to download them. YouTube and Netflix are examples of online video streaming services. In addition, the increasing use of social media platforms and digital media for activities such as marketing and branding has accelerated the increase of mobile phone usage, which drives the expansion of numerous streaming platforms. The rising use of video streaming in various industries is expanding the market.

The rate of mobile phone and other device adoption has led to an increase in monthly and annual subscription payments for the live streaming of various television shows and video games. A growing number of innovations, like two-way video streaming with little lag in social media applications and a rise in customer involvement through live video streaming, are also key industry trends. Developers of video streaming software provide service providers with software that is disseminated through multiple methods. On the basis of their manner of sales, commercial focus, and professional certifications, these service providers can be categorized into several groups.

Market Dynamics

Market Drivers

High Adoption of Online Video Streaming to Propel Growth

Globally, digital media consumption is growing dramatically. Consumers can access media content anywhere in the world due to the growing demand for devices capable of providing digital media and faster internet speed. Increasing numbers of digital media players, including Amazon, Netflix, Apple TV, and Hulu, are challenging the dominance of conventional television as the primary entertainment platform.

The increasing prevalence of smartphones coupled with a vast array of high-speed internet technologies, such as 3G, 4G, and LTE, has led to a rise in data consumption. Global audio and video traffic have increased the internet's data consumption. In addition, there is a thriving market for connected devices and consumer electronics that can support digital media and high-speed internet technologies that enable consumers to access video content from anywhere in the world. These factors have significantly contributed to the increasing popularity of video streaming platforms.

Increased Demand for High Internet Connectivity to Bolster Market Growth

The proliferation of smartphones equipped with high-speed internet technologies such as 3G, 4G, and LTE has led to an increase in the consumption of data and production of on-demand content services. Some examples of these services include real-time entertainment and gaming services. Connectivity to the internet has made it much simpler to access video content, such as that offered by social media platforms like Facebook, Instagram, Google Hangouts, and Skype. It is anticipated that the convenience offered by video streaming services and the ease with which users can access various types of video content will contribute to the market expansion.

The evolution of the need for video streaming is driven partly by the rising demand for internet connectivity with high bandwidth. In addition, there have been rapid developments in the training industry, such as Microsoft's purchase of Affirmed Networks in 2020. Affirmed Networks is a cloud-native networking Solutions Company based in the United States for telecom operators. Microsoft anticipates that this partnership will assist in developing solutions for 5G and edge computing. As a result, new partnerships and technological developments will propel the market for video streaming services forward during the forecast period.

Market Restraints

Expensive Content Creation and Technical Difficulties to Hinder Market Growth

In the last few years, there has been a shift from traditional television to online digital platforms, resulting in a significant change in the production of content for various media. Online entertainment providers like Netflix, Amazon.com, Inc., and Hulu have successfully introduced critically acclaimed original content, including series like Bridgeton, Ginny & Georgia, and 25 21. The companies incur a significant financial burden to produce such unique content. It was reported that in 2018, businesses such as Amazon and Google LLC spent more than USD 3 billion on the production of such content. Consequently, the market expansion for video streaming is being hampered by the high costs associated with creating content.

Furthermore, the ability to stream videos is heavily influenced by factors such as the connectivity and performance of the network. For example, to stream a video at a higher quality, you need a rate of at least three megabits per second. In addition, a robust and stable signal is required to watch videos while they are being streamed. As a result, issues associated with network connectivity and technical challenges may slow the market expansion for video streaming.

Market Opportunities

Impact of Video Streaming in the Educational Sector to Spur Market Opportunities

Videos can significantly improve education by contributing to students' overall retention of information. Included in this category are video lectures and webinars, among other things. In today's day and age, educational institutions like universities, schools, and colleges produce interactive content and convey it in video presentations. In doing so, they are effectively utilizing technology to impart knowledge. The ever-increasing demand for videos that can be used in the classroom is bringing about a profound shift in teachers' roles. The latter can now use a variety of videos in the school and give lessons via video to virtual classrooms worldwide. As a result, the use of videos contributes to the development of a multimodal classroom.

The multimodal learning model requires the utilization of video streaming and video broadcasting as core components. The use of videos in education is influenced by many factors, including pedagogical considerations, technological developments, and social considerations. The adoption of tools that promote better comprehension on the part of students, the need for critical problem-solving skills, a competitive working skill environment, and an emphasis on globalization are some of the pedagogical factors. The use of videos for educational purposes is being positively influenced by technological developments such as the growing demand for mobile devices, the easy availability of video content, the rising number of people watching videos, and the increasing number of people who have access to the internet.

Regional Analysis

The global video streaming market is analyzed across North America, Europe, Asia-Pacific, South America, and the Middle East and Africa based on region.

Is North America Likely to Dominate the Global Video Streaming Market?

North America dominates the global video streaming market and is expected to grow at a CAGR of 19.9% during the forecast period. This is due to substantial investments in offshore video streaming solutions & services and strategic partnerships between government organizations & network domains. Most direct-to-consumer video streaming services in the United States pursue the ad-free subscription model. Like mergers and acquisitions, the strategic initiatives are anticipated to provide video streaming companies with an additional avenue for expanding their video content libraries. For instance, Akamai Technologies (the US) announced its acquisition of Exceda in November 2019. These factors will add value to the region's growing market share.

The European market is expected to be valued at USD 99.9 billion, growing at a CAGR of 21%. Emerging trends, such as the concept of over-the-top (OTT) and subscription-based video-on-demand services, are anticipated to contribute significantly to Europe's growth. Internet service providers have introduced new plans for mobile phone users and increased high data volume and bandwidth, which are among the primary factors driving the expansion of streaming services in the region. Moreover, in terms of business expansion strategies, there is an incessant divergence between the growth patterns of local players that center on region-specific services and non-European tech giants such as Netflix, Inc. and Rakuten TV, which are gradually expanding into new territories. The European market for video streaming appears to be a rapidly evolving industry, driven by an increase in tech-savvy consumers on the demand side and an increase in video streaming offerings on the supply side.

Segmental Analysis

The global video streaming market has been segmented across streaming, solution, platform, service, revenue model, deployment, and user.

On the Basis of Streaming

The streaming segment includes Live Video Streaming and Non-linear Video Streaming.

The Live Video Streaming segment will likely hold the largest market share, growing at a CAGR of 21.2% during the forecast period. This is due to the increasing popularity of digital media devices and the faster internet speeds that enable consumers to access media content remotely. Additionally, ad-free content, mobile viewing, analytics tracking, plenteous content use, enormous audience potential, and high-quality streams enhance the live streaming of videos. Live content, such as sports and other vital events, has maintained live video streaming's prominence.

On the Basis of Solution

The solution segment includes Internet Protocol TV, Over the Top (OTT), and Pay TV.

The Over the Top (OTT) segment will likely hold the largest market share, growing at a CAGR of 21.6% during the forecast period. OTT solutions provide film and television content through the internet without requiring users to subscribe to traditional cable or pay-tv services. The segment is anticipated to grow significantly over the forecast period due to the rising demand for enhanced automation of business processes and the widespread availability of broadband infrastructure.

On the Basis of Platform

The platform segment includes Gaming Consoles, Laptops & Desktops, Smartphones & Tablets, and Smart TVs.

The Smartphones & Tablets segment will likely hold the largest market share, growing at a CAGR of 20.5% during the forecast period. This is due to the internet's easy accessibility, rising disposable income, improved standard of living, and lifestyle shifts. Due to the abundance of dependable internet services, such streaming makes live streaming trouble-free. Due to their portability and ease of remote access, tablets & smartphones are more likely to be accepted for online content viewing.

On the Basis of Platform

The service segment includes Consulting, Managed Services, and Training & Support.

The Training & Support segment will likely hold the largest market share, growing at a CAGR of 21.5% during the forecast period. Enterprises implement a variety of mediums to make training programs more engaging and effective, despite facing various challenges when training employees. To meet this demand, businesses utilize video streaming service providers' training services to integrate and deliver high-quality training to their employees. The authenticity and interactivity provided by live-streaming content aid in retaining the audience's attention and enhancing the training experience. Consequently, the increasing utilization of videos for corporate training is driving the expansion of video streaming in the training and support service segment.

On the Basis of Revenue Model

The revenue model segment includes Advertising, Rental, and Subscription.

The Subscription segment will likely hold the largest market share, growing at a CAGR of 21.7% during the forecast period. Access fees or subscriptions are frequently required for online video streaming. For instance, Netflix provides various online video streaming subscription plans. The subscription model allows access to a wide variety of video content, including exclusive series. Consequently, growing subscribers to subscription-based services are anticipated to generate market expansion opportunities.

On the Basis of Deployment

The deployment segment includes Cloud and On-premise.

The Cloud Deployment segment is widely used and is estimated to grow at a CAGR of 21.4% during the forecast period. Cloud computing advancements have revolutionized video streaming and enabled the development of streaming platforms such as YouTube and Netflix. Video streaming platforms have adopted cloud-based deployment to help with high bandwidth and speed. Several streaming service providers have chosen cloud-based deployment over on-premises because it can handle larger data volumes and deliver a superior viewing experience.

On the Basis of User

The user segment includes Enterprises and Consumers.

The Consumer segment will likely hold the largest market share, growing at a CAGR of 20% during the forecast period. This is due to the media and entertainment industry's increased viewer numbers of video on demand and live streaming services. The consumer segment is expected to expand due to the convenience of remote video viewing. Growing smartphone subscriptions and the adoption of connected devices, particularly smartphones, are anticipated to contribute to the growth of this market segment.

Recent Developments

• 2022 - Akamai Technologies launched the first Non-Fungible Token artwork dynamically designed by the internet.
• 2022 - Amazon Web Services, Inc. announced the general availability of Amazon Elastic Compute Cloud C7g instances.
• 2022 - The CFO of Netflix, Inc. presented at the Morgan Stanley Technology, Media & Telecom Conference.