The video encoder market is estimated to reach USD 3.3 billion by 2027 from USD 2.3 billion in 2022 with a CAGR of 7.6% from 2022 to 2027. The major factors driving the growth of the video encoder market include adoption of high-efficiency video coding (HEVC) standards for video encoding, ease of connecting analog cameras using video encoder to a network, and use of cloud services to store increasing amount of data. Key players in the market focus on research and development (R&D) to enhance the functionalities of the video encoders offered. Morevoer, growth innumber of mobile-streaming videos and growing market for OTT services in developing countries are also creating immense opportunities for the video encoder market.
“BROADCASTING APPLICATION IS EXPECTED TO GROW AT THE HIGHEST CAGR FROM 2022 TO 2027”
The market for broadcasting application is expected to grow at the highest CAGR between 2022 and 2027. Video encoders are crucial in broadcasting, 4K recording/over IP, and supporting cameras (such as monitoring live events). Most broadcasters are now using video encoders to deliver high-quality video content using lower bandwidth. The installation of video encoders helps broadcasters deliver high-quality video at minimum bit rates. Hence, the need for service providers to transmit high-quality content and ensure better streaming has led to the increased demand for broadcast encoders.
“16-CHANNEL VIDEO ENCODERS IS PROJECTED TO GROW AT A HIGHER CAGR DURING THE FORECAST PERIOD”
The market for 16-channel encoders s projected to grow at a higher CAGR during forecast period. 16-channel video encoders have 16-channel video and audio inputs. The demand for 16-channel video encoder systems is expected to grow primarily due to the ease of 16-channel video encoder deployment rather than switching to expensive IP-based systems. The growing installation of a large number of cameras in commercial and institutional segments is expected to be another key factor supporting the growth of this market.
“NORTH AMERICA HELD THE LARGEST SHARE OF THE VIDEO ENCODERS MARKET IN 2021”
The North merica held a larger share of the video encoder market in 2021. Collaborations between the government and network arenas, institutional partnerships between video encoder manufacturers and research collaborations, and large-scale investments in cloud-based services in North America drive the demand for video encoders. Moreover,in North America, particularly in the US, the government has taken initiatives to implement surveillance systems at government buildings, public places, and educational institutes. North America is considered a pioneer in adopting video surveillance systems for public safety. Video encoders play a major role in converting the existing analog systems into IP-based systems.
The break-up of the profiles of primary participants for the report has been given below:
- By Company Type: Tier 1 = 25%, Tier 2 = 35%, and Tier 3 = 40%
- By Designation: C-Level Executives = 35%, Directors= 25%, and Others= 40%
- By Region: North America = 14%, Europe = 43%, Asia Pacific = 29%, and RoW = 14%
Major players operating in the video encoders market includeHikvision (China), VITEC (France), Harmonic (US), Motorola Solutions (US), and CISCO (US), among others.
The video encoder market has been segmented based on the number of channels, type, application, and region. Based on type, the market has been segmented into standalone and rack-mounted video encoders. Standalone video encoders are beneficial in situations where only a few cameras are to be connected, while rack-mounted video encoders are useful in instances where large installations with analog cameras are required. The video encoder market is segmented, by application, into broadcasting and surveillance. Cable operators and broadcasters use video encoders to improve the video quality delivered to their customers. Surveillance applications cover various verticals, such as institutional, commercial, residential, transportation, retail, and military and defense. The use of security cameras in these verticals has helped increase the demand for video encoders. The video encoder market has been segmented by the number of channels into 1-channel, 2-channel, 4-channel, 8-channel, 16-channel, and more than 16-channel video encoders. 1-channel or 2-channel video encoders are used for small-scale applications such as small shops or individual residents. 8-channel and 16-channel video encoders can be used for instances where many analog cameras are to be installed. The report covers four major regions, namely,North America, Europe, AsiaPacific (APAC), and Rest of the World (RoW).
Key Benefits of Buying the Report:
This report segments thevideo encoders market comprehensively and provides the closest approximations of the overall market size, as well as that of the subsegments across differentnumber of channels, type, application, and region.
The report helps stakeholders understand the pulse of the market, andexpected market scenario and provides information on key market drivers, restraints, challenges, and opportunities.