The market for Video Streaming Software is forecast to reach $10.5 billion by 2025, growing at a CAGR of 15.2% from 2020 to 2025. Increasing need for transcoding to deliver videos to a large number of end users, and extensive growth of online video and growing demand for on-demand streaming are the major driving factors for the growth of this market. Moreover, increasing network bandwidth for fulfilling rising demand among users to view videos on multiple screens along with growing deployment of video analytics are expected to boost global video streaming software market in the coming years.
- North America dominated the video streaming software market due to collaborations between the governments and network arenas, institutional partnerships between video streaming and research collaborations, and large-scale investments in outsourced video streaming solutions and services.
- One of the major driving factors for the video streaming software market is increasing need for transcoding to deliver videos to a large number of end users.
- Network connectivity and technical difficulties involved in video streaming is one of the major hindrances in the video streaming software market.
Solution – Segment Analysis
By solutions, the transcoding and processing segment is expected to witness significant growth of around 18.4% during the forecast period 2020 – 2025. Using a transcoding software or service facilitates simultaneous creation of a set of time-aligned video streams, each with a different bitrate and frame size, while converting the codecs and protocols to reach additional viewers. This set of internet-friendly streams can then be packaged into several adaptive streaming formats (e.g., HLS), allowing playback on almost any screen on the planet, thereby elevating the market growth in the coming years. The transcoding and processing segment will have a significant market share of the global video streaming software market over the next years owing to increased traction for online video streaming and the adoption of cloud-based transcoding by companies.
Vertical – Segment Analysis
The video streaming software market is broadly classified by vertical into broadcasters, operators, and media; BFSI; education; healthcare; government and others. The broadcasters, operators, and media vertical is expected to dominate the market with the largest market share during the forecast period. However, education industry vertical is projected to grow at the highest rate of around 17.4%, as video solutions help colleges and universities to centrally manage the video resources collected from various sources. Moreover, video solutions are enhancing classroom experiences and increasing the student engagement as lockdown has been imposed in most of the countries across the globe due to the pandemic. Due to Coivd-19, most of the classes, training sessions and meetings are being held online which is significantly fuelling the market growth.
Geography – Segment Analysis
The video streaming software market is segmented across five regions, namely, North America, Asia Pacific (APAC), Europe, Middle East and Africa (MEA), and South America. North America is expected to account for the largest share of the overall video streaming software market in 2019, due to factors, such as collaboration between the governments and network arenas, institutional partnerships between video streaming and research collaborations, and large-scale investments in outsourced video streaming solutions and services. APAC is expected to have the highest growth rate during the forecast period, owing to increasing usage of digital media among the organizations and individuals, and the rising awareness regarding business productivity in this region.
Drivers – Video Streaming Software Market
Increasing need for transcoding to deliver videos to a large number of end-users driving the Video Streaming Software Market
One of the major driving factors for the video streaming software market is increasing need for transcoding to deliver videos to a large number of end users. Transcoding is crucial for the delivery of smooth and high-quality live streaming videos. It is a technique in video processing, where video in any format/codec is reformatted to another format. Transcoding also enables in adding dynamic overlays into the videos such as, logos, watermarks, sports scores, or any other graphics. It helps content providers cater their videos to more number of end-users, thereby boosting its demand among various industry verticals.
- Rise of online learning during Covid-19 pandemic
The COVID-19 has resulted in schools shut all across the world. Globally, over 1.2 billion children are out of the classroom. As a result, education has changed dramatically, with the distinctive rise of e-learning, whereby teaching is undertaken remotely and on digital platforms. According to WeForum organization, while countries are at different points in their COVID-19 infection rates, worldwide there are currently more than 1.2 billion children in 186 countries affected by school closures due to the pandemic. In response to significant demand, many online learning platforms are offering free access to their services and other companies are bolstering capabilities to provide a one-stop shop for teachers and students. For example, Lark, a Singapore-based collaboration suite initially developed by ByteDance as an internal tool to meet its own exponential growth, began offering teachers and students unlimited video conferencing time, auto-translation capabilities, real-time co-editing of project work, and smart calendar scheduling, amongst other features.
Challenges – Video Streaming Software Market
- Network Connectivity and Technical Difficulties Involved in Video Streaming
Network connectivity and technical difficulties involved in video streaming is one of the major hindrances in the video streaming software market. Despite the massive advancements in streaming technology over the past two decades, there are specific hurdles that the industry continues to face. In particular, bandwidth limitations, latency issues, and device compatibility challenges prevent viewers from experiencing seamless video streaming.
Product launches, acquisitions, and R&D activities are key strategies adopted by players in the Video Streaming Software Market. Video Streaming Software driver market is expected to be dominated by major companies such as Brightcove Inc. (US), Haivision Inc. (Canada), IBM Corporation (US), Kaltura, Inc. (US), Kollective Technology Inc., (Kontiki) (US), Ooyala Inc. (US) , Panopto Inc. (US) , Polycom Inc. (US), Qumu Corporation (US), Sonic Foundry Inc., VBrick (US), and Wowza Media Systems LLC (US). among others.
- In March 2017, Kaltura partnered with the University of the West of England (UWE) to deploy its video platform for over 500 courses. This will enable students to produce their videos on any mobile device, easily embed it into an assessment, and then securely submit the assessment to the lecturer via the Virtual Learning Environments (VLEs).
- In April 2017, IBM launched a new Watson-enabled cloud service, which will help enterprises to extract insights from videos through the combination of various AI techniques. By leveraging this technology, service media and entertainment companies can analyze unstructured data and make informed decisions about the content they create, acquire, and deliver to their viewers.
- In August 2019, Twitch has launched its own video streaming software. It is the companies first broadcast offering. While the platform is the largest player in the live streaming room around it, its broadcasters from the most prominent makers to the lowest streamers all depends on third-party software to get their streams to spectators. The concept is to make it simpler for fresh streamers to begin on Twitch and, of course, to get more individuals into it.