Published: September 2019 | Report Code: IM10814 | Available Format: PDF | Pages: 203
The video streaming market value was $245.3 billion in 2018, and the market is predicted to progress at a CAGR of 19.1% between 2019 and 2024. The market is being driven by the surging internet penetration and growing popularity of social media platforms.
North America held the largest share in the video streaming industry in 2018 owing to the large-scale adoption of video streaming services and existence of several industry players, such as Amazon Web Services, Hulu, and Netflix Inc. Additionally, the high disposable income of the people in this region and presence of a well-established technology infrastructure are fueling the market advance.
The soaring popularity of social media platforms is one of the key factors driving the progress of the market. Over the last few years, there has been a massive rise in the video content on social media platforms, primarily because of the increasing internet penetration and speed. For example, the content on YouTube exhibited a growth of 99% in 2017.
Currently, more than 40% of the worldwide population, or over 3 billion people, actively use social media. From 2017 to 2018, the number of such users registered a growth of 14%. Additionally, the widening internet connectivity is propelling the video streaming market growth. From December 2014 to March 2019, the number of internet users increased by nearly 1.3 billion and reached 4.4 billion. This has fueled the rise of video streamers and video content creators.
The linear category held the larger share under the type segment in 2018. This is because linear video streaming is preferred by a large number of users as it provides access to a plethora of channels and content and the live screening of various events. Moreover, this mode provides a familiar, more-passive, and effortless viewing experience with scheduled video content.
The solution category dominated the market for video streaming, with a share of 94.6%, in 2018, within the offering segment. Video streaming solutions have become critical components of corporate communications, sales, business development, and marketing, and they are also becoming sought-after in the entertainment sector.
The over-the-top (OTT) category exhibited the fastest growth during 2014–2018, on the basis of solution, due to the increasing number of connected devices and apps, rapid technological advancements, and mushrooming demand for fresh content.
The television (TV) category is leading the video streaming market under the platform segment, as televisions are still preferred by a large number of people for viewing both linear and non-linear content. Furthermore, consumers are using a plethora of methods for watching non-linear content on their televisions (through gaming consoles, smart TV apps, and connected laptops).
However, smartphones and tablets are more commonly used by young consumers (age bracket 15–35) for watching video content, as these devices allow them to watch as per their convenience.
The cloud category will exhibit the faster under the deployment segment, in the forthcoming years. The adoption of cloud storage is becoming common among people, with iCloud, SharePoint, Google Drive, and Dropbox becoming a critical part of the overall mobile experience. The rising requirement for video streaming is pushing up the demand for network efficiency, high service quality, and video processing, which is subsequently augmenting the load on the existing infrastructure.
With reduced maintenance and deployment costs, faster performance, and the ability to provide almost instant scalability, cloud-based deployment ensures smoother video steaming.
The subscription category held the largest share in 2018, within the revenue model segment of the video streaming market. This fact is corroborated by the surge in the number of subscriptions recorded by various global market players. For example, there were 101 million Amazon Prime Video subscribers in the U.S. alone, while Netflix had 139 million subscribers around the world in 2018. With the increasing internet penetration and speeds, lucrative growth opportunities are opening up for regional OTT service providers.
The consumer category, under the end user segment, dominated the market for video streaming in 2018 due to the surging smartphone penetration. Smartphones are increasingly being preferred for video streaming over the traditional cable TVs. The increasing deployment of mobile broadband services by mobile network operators (MNOs) is allowing people to watch video content on their mobile phones, especially in the Middle East & Africa (MEA) and Asia-Pacific (APAC) regions.
Globally, North America dominated the market in 2018 with an around 40.0% revenue share, mainly because of the wide-scale practice of streaming videos on smartphones in the region. Furthermore, internet speeds and broadband connectivity have increased significantly in the region over the last five years. Additionally, the availability of customized content is predicted to support the market growth in the upcoming years. The U.S. led the regional market during the last few years.
In the coming years, the video streaming market is predicted to exhibit the fastest growth in the APAC region. The growing penetration of smart devices, such as smartphones, laptops, tablet PCs, and smart TVs, falling data costs, increasing internet surfing activities on handheld devices, and rapid advancements in the telecom infrastructure are the major factors driving the expansion of the regional market.
In APAC, the industry is expected to demonstrate the highest growth rate in India in the forthcoming years. Here, data consumption is predicted to surge to 100,000 billion Megabytes (Mb) by 2022 from 7,100 billion Mb in 2017. Moreover, with the growing smartphone penetration, which was nearly 27% in 2018, and the falling data tariffs, the popularity of video streaming will rise tremendously in the country.
Additionally, internet penetration in the country is registering a significant year-over-year (Y-o-Y) growth. In the same vein, mobile internet penetration in the country is expected to increase from around 30% in 2017 to 55% by 2022.
The video streaming market is highly competitive in nature and is characterized by the presence of companies such as Netflix Inc., Amazon.com, Inc., AT&T Inc., The Walt Disney Company, British Broadcasting Company, and Alphabet Inc., operating as key players. This growth in demand is further projected to intensify the market competition during the forecast period.
Major players in the video streaming market are focusing on partnerships where the key strategic activities undertaken by the major players in the video streaming market is to increase their consumer base. For instance, in March 2019, Amazon.com Inc. partnered with Tigo, a Luxemburg based telecommunications company, to provide Tigo’s consumer base with the Amazon Prime Video streaming services. Tigo would provide free of cost services to its consumers for the first 3 months, after which the users would have to pay $2.99 per month for the next 6 months, and if the user extends the service after 10 months, the user would have to pay $5.99 per month.
Furthermore, in January 2019, Alphabets Inc.’s subsidiary Google Inc. came into partnership with LG Uplus Corp. which is aimed at investing in the development of VR content to make its VR content more accessible to consumers, globally. Under this partnership, LG Uplus is responsible for the production and planning of VR content and acquiring commercialization rights in South Korea, while Google Inc. is responsible for acquiring global distribution rights from YouTube.
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