Video Processing Platform Market by Component (Hardware, Platform, Services), Application (Video Upload & Ingestion, Dynamic Ad Insertion, Video Transcoding & Processing, Video Hosting), Content Type, Vertical and Region - Global Forecast to 2028
[261 Pages Report] The video processing platform market size is expected to grow from USD 7.6 billion in 2023 to USD 13.5 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 12.1% during the forecast period. As technology advanced, video processing platforms had to adjust to support a wider variety of video formats and resolutions. From standard definition to high definition and eventually 4K and beyond, platforms had to accommodate higher quality videos and optimize their processing capabilities. Streaming technology became a game-changer for video processing platforms. Rather than necessitating users to download video files before playback, platforms started providing streaming services that allowed for real-time delivery of video content over the internet. This made it possible to watch videos straight away, without the need for large file downloads. Video processing platforms have increasingly ventured into live streaming, allowing users to broadcast and watch live events in real-time. This has opened up new opportunities for content creators, businesses, and individuals to engage with their audiences and share real-time experiences. As video processing platforms matured, monetization models emerged to support the sustainability of the platforms and content creators. Advertising, subscriptions, pay-per-view, and sponsorships are common methods used to generate revenue on these platforms.
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Recession Impact on the Video processing platform market
The global recession caused by factors such as the Russia-Ukraine war, the pandemic, inflation, rising interest rates, and oil prices has led to reduced spending by organizations, which may affect the demand for video processing platforms across industries in the short term. During this time, companies have faced financial challenges, resulting in reduced advertising budgets. As a result, video processing platforms that rely heavily on ad revenue may experience a decline in advertising spending. However, the recession has also created opportunities for the global video processing platform market. With lockdowns and restrictions in place, people are spending more time at home, leading to a surge in demand for online video content. Video processing platforms have seen increased usage as individuals and businesses create and distribute video content to reach their audiences. This has opened up new opportunities for platforms to attract new users and generate revenue through increased subscriptions or ad views. In the long run, the recession will have a positive impact on the market due to the continued growth in internet penetration, the increasing popularity of mobile devices, and the convenience and flexibility of streaming services. However, the impact of the recession on the market is likely to be felt for some time, particularly in terms of investment and advertising revenue.
Video Processing Platform Market Dynamics
Driver: Increase in demand for video content across industries
The demand for video content has increased dramatically across various industries and platforms, including social media, e-learning, marketing, and entertainment. Individuals, organizations, and businesses are constantly generating and publishing videos to engage their audiences, educate users, promote products or services, and entertain viewers. To make video content more captivating and appealing to the intended audience, video processing platforms offer the necessary tools and features for editing, enhancing, and optimizing video content. With the rise of video streaming platforms and the expectation of high-quality video experiences, content creators and service providers are working hard to deliver superior video quality. Video processing platforms are crucial in ensuring that video content is optimized for different devices, screen sizes, and network conditions. They aid in tasks such as transcoding, encoding, and compression, which enhance video quality, minimize buffering, and provide a seamless viewing experience for users. According to the Wyzowl Video Survey of 2023, 70% of non-video marketers intend to start online video marketing in 2023. Consequently, the growing adoption of video content for various applications is expected to drive the market's growth during the forecast period.
Restraint: Cost of implementation of video processing platform hindering market growth
The expenses involved in implementing a video processing platform can be quite high, including licensing fees, hardware infrastructure, software customization, and ongoing maintenance costs. Such high implementation costs may make it difficult for many potential customers, particularly small businesses, startups, or individuals with limited budgets, to access such software solutions. This limited accessibility can impede market growth by reducing the potential customer base. Additionally, organizations may need custom development or customization of the video processing platform to meet their specific requirements and workflows, which can result in further costs for hiring software developers, consultants, or the platform provider's professional services. The costs of customization can vary depending on the complexity and scope of the required changes.
Opportunity: Growing adoption of edge computing infrastructure for real-time data processing
The concept of edge computing involves bringing data processing and storage closer to the network edge. This approach reduces the latency that comes with transmitting data to a centralized cloud infrastructure. Reduced latency is crucial for applications that require real-time video processing, such as immediate analysis, encoding, and rendering of video content. By leveraging edge computing, video processing platforms can deliver faster and more responsive video processing capabilities. This, in turn, improves the user experience in applications like live streaming, video conferencing, and augmented reality. With edge computing, video processing platforms can perform real-time analytics and insights directly at the network edge. Local analysis of video content enables quick decision-making and immediate response in applications like video surveillance, smart cities, and industrial monitoring. Edge-based video analytics enable faster detection of objects, events, or anomalies, enhancing situational awareness and enabling proactive actions based on real-time video data.
Challenge: Poor internet service degrading video quality
When it comes to watching videos online, poor internet services can have a major impact on the viewing experience. Slow internet speeds often cause buffering, which interrupts the flow of the video and causes frustration. Additionally, intermittent connection disruptions can cause the video to stutter or freeze during playback, making it difficult to follow the content smoothly. A recent survey conducted by Interra Systems and Dan Raybun in 2022 found that 70% of respondents believe there is a strong correlation between content quality and customer retention. As a result, many OTT providers are prioritizing audio and video quality, as well as the overall viewing experience, by implementing quality control and monitoring into their workflows.
Video processing platform market Ecosystem
Based on component, the platform segment is projected to witness the highest market share during the forecast period.
Video processing platforms are software solutions that serve as the foundation for video processing workflows. They offer a variety of tools, functionalities, and APIs to aid in video processing tasks. Common features include video encoding, decoding, and transcoding capabilities, video editing and post-production tools, video streaming and delivery, video analytics and processing, video quality enhancement, content management and storage, and integration with other systems. These platforms handle every step in the video processing journey from video upload to preparing for video delivery. They empower enterprises with end-to-end video processing capabilities such as video uploading, video ingestion, content rendering, video transcoding and processing, dynamic ad insertion, and monetization. Video processing platforms offer optimized performance, reduced latency, reduced capital expenditures, and reduced total cost of ownership. They enable service providers to deliver a wide range of services. End users benefit from unprecedented performance, cost-efficiency, scalability, reliability, and flexibility. The key features of the video processing platform include media ingest/recording, media delivery (streaming), media transcoding, ad insertion, packaging, encryption, and content delivery/streaming.
By Vertical, the manufacturing segment is expected to grow at the highest CAGR during the forecast period.
With the advent of industry 4.0, the manufacturing sector is undergoing major transformations. To facilitate effective communication between internal stakeholders and customers, manufacturers require innovative communication techniques that enable real-time discussions and idea-sharing, especially for complex technical schematics. The video processing platform is a valuable solution that provides enhanced processing techniques, advanced analytics, and collaboration tools to enable manufacturing enterprises to improve their products. With the help of high-quality live streaming capabilities and video processing platforms, manufacturers worldwide can communicate seamlessly with their distributed design centers, account teams, factories, partners, and suppliers. The end users in the Manufacturing industry include various other sectors related to the production of goods and materials such as Automotive, Aerospace and Defense, Chemicals, Machinery and Equipment, Metal and Steel, and Textiles. These end users leverage video processing technologies to improve quality control, optimize processes, enhance training programs, streamline operations, and ensure workplace safety. Video processing empowers manufacturers with visual insights, automation capabilities, and data-driven decision-making to drive operational excellence and innovation.
Based on Region, North America to hold the largest market share during the forecast period.
The global video processing platform market is majorly influenced by North America. The region has seen a rapid rise in the adoption of video processing software and hardware due to the popularity of online video streaming services like Netflix and Hulu, as well as social media platforms like TikTok and YouTube. These platforms require advanced video processing to deliver high-definition, smooth video content to users. Organizations are now turning to advanced video transcoding and processing technologies to improve their streaming services, optimize bandwidth usage, and enhance user experience. With continuous advancements in video processing technologies like machine learning, artificial intelligence, and improved algorithms, these solutions have become more accessible, efficient, and cost-effective. Additionally, North America has a thriving gaming industry with major game developers, publishers, and studios located in the region. Prominent gaming platforms like Xbox, PlayStation, and PC gaming have a significant market presence, while several companies focus on developing immersive experiences using VR and AR technologies. VR headsets such as Oculus Rift, HTC Vive, and PlayStation VR have gained popularity among gamers, and gaming and AR VR applications are expected to drive the demand for real-time video processing platforms in the region.
Key Market Players
The video processing platform market is dominated by a few globally established players such as Akamai Technologies (US), MediaKind (US), Imagine Communications (US), Harmonic (US), and Synamedia (UK), among others, are the key vendors that secured video processing platform contracts in last few years. These vendors can bring global processes and execution expertise to the table, the local players only have local expertise. Driven by increased disposable incomes, easy access to knowledge, and fast adoption of technological products, buyers are more willing to experiment/test new things in the video processing platform market.
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Report Metrics |
Details |
Market size available for years |
2019–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD Million/Billion) |
Segments covered |
Component, Application, Content Type, and Vertical |
Regions covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
Companies covered |
Akamai Technologies (US), MediaKind (US), Imagine Communications (US), Harmonic (US), Synamedia (UK), Avid Technology (US), Evertz (Canada), Edgio (US), Brightcove (US), AWS Elemental (US), Kaltura (US), Haivision (US), Telestream (US), NVIDIA (US), Ateme (France), Wowza Media Systems (US), SeaChange (US), Mux (US), Bitmovin (US), Amagi (US), Panopto (US), SSIMWave (Canada), Mediamelon (US), Vantrix (Canada), M2A Media (UK), Pixel Power (UK), InPixal (France), Beamr (Israel), Lightcast.com (US), and base (UK). |
This research report categorizes the video processing platform market to forecast revenue and analyze trends in each of the following submarkets:
Based on Component:
- Hardware
- Platform
- Services
Based on Application:
- Video Upload & Ingestion
- Dynamic Ad Insertion
- Video Transcoding & Processing
- Video Hosting
- Content Rendering
- Other Applications
Based on Content Type:
- Real-time/Live
- On-demand
Based on Vertical:
- BFSI
- Education
- Government & Defense
- Healthcare & Life Sciences
- IT & Telecommunications
- Manufacturing
- Media & Entertainment
- Retail & Consumer Goods
- Other Verticals
Based on Region:
-
North America
- US
- Canada
-
Europe
- UK
- Germany
- France
- Rest of Europe
-
Asia Pacific
- China
- Japan
- Australia & New Zealand
- Rest of Asia Pacific
-
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Rest of Middle East & Africa
-
Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments:
- In April 2023, Akamai introduced new cloud computing capabilities aimed at improving streaming video experiences for OTT (Over-the-Top) operators. These capabilities likely focus on delivering higher-quality video, personalization options, cost optimization, and content monetization.
- September 2022, MediaKind announced an enhancement to MK Engage, a video production, engagement, and streaming solution. With its modular framework, MK Engage covers the entire streaming pipeline, starting from content ingestion to final delivery. This empowers sports franchises and live content providers to maximize fan engagement and explore new revenue streams.
- In August 2022, Harmonic and NAGRA joined forces to enhance content protection for live sports streaming through a new watermarking-as-a-service offering. This collaboration involves integrating NAGRA NexGuard forensic watermarking, a critical solution within the NAGRA Active Streaming Protection framework, with Harmonic's industry-leading VOS 360 cloud SaaS platform. This integrated solution aims to provide content owners and service providers with an efficient way to protect premium content at scale during live sports events.
- In April 2022, Imagine Communications and Operative announced a collaborative partnership agreement. This agreement brings together essential components from Imagine's portfolio, including OSI, XG Linear, GamePlan, and the recently introduced SureFire, with Operative's AOS and OnAir platforms. By leveraging the strengths of both companies, media companies will be empowered to efficiently strategize, sell, and implement advertising in a manner that prioritizes the audience across various digital and linear platforms.
- In March 2021, Synamedia unveiled Synamedia Go, a modular suite of data-driven SaaS services that provides a frictionless way for Pay TV operators and OTT/D2C streaming providers to rapidly augment and create value from their technology platforms.
Frequently Asked Questions (FAQ):
What is Video Processing Platfrom?
Video processing platform is a software or hardware system that is specifically designed to handle and process video data. It provides tools, algorithms, and resources for various video-related tasks, such as video encoding, decoding, transcoding, editing, streaming, and analysis. Video content such as TV shows, movies, and live streams are processed for delivery on-demand or via live broadcast. Video processing platforms are typically used in industries like broadcasting, media, surveillance, entertainment, education, and more. The major applications of video processing consist of video upload and ingestion, dynamic ad insertion, video transcoding and processing, video hosting, and content rendering.
Which country is the early adopter of Video Processing Platform?
The US is at the initial stage of the adoption of Video Processing Platform.
Which are the key vendors exploring Video Processing Platform?
Some of the major vendors offering video processing platform across the globe include Akamai Technologies (US), MediaKind (US), Imagine Communications (US), Harmonic (US), Synamedia (UK), Avid Technology (US), Evertz (Canada), Edgio (US), Brightcove (US), AWS Elemental (US), Kaltura (US), Haivision (US), Telestream (US), NVIDIA (US), Ateme (France), Wowza Media Systems (US), SeaChange (US), Mux (US), Bitmovin (US), Amagi (US), Panopto (US), SSIMWave (Canada), Mediamelon (US), Vantrix (Canada), M2A Media (UK), Pixel Power (UK), InPixal (France), Beamr (Israel), Lightcast.com (US), and base (UK).
What is the total CAGR expected to be recorded for the Video processing platform market during 2023-2028?
The Video processing platform market is expected to record a CAGR of 12.1% from 2023-2028
What is the projected market value of the video processing platform market?
The video processing platform market size is expected to grow from USD 7.6 billion in 2023 to USD 13.5 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 41.9% during the forecast period.
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The study involved four major activities in estimating the current market size of the video processing platform market. Extensive secondary research was done to collect information on the market, the competitive market, and the parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, the market breakup and data triangulation procedures were used to estimate the market size of the various segments in the video processing platform market.
Secondary Research
This research study used extensive secondary sources, directories, and databases, such as D&B Hoovers, DiscoverOrg, Factiva, vendor data sheets, product demos, Cloud Computing Association (CCA), Vendor Surveys, Asia Cloud Computing Association, and The Software Alliance. All these sources were referred to for identifying and collecting information useful for this technical, market-oriented, and commercial study of the video processing platform market.
Primary Research
Primary sources were several industry experts from the core and related industries, preferred software providers, hardware manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the industry’s value chain. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess the market’s prospects.
Primary interviews were conducted to gather insights, such as market statistics, the latest trends disrupting the market, new use cases implemented, data on revenue collected from products and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped in understanding various trends related to technologies, segmentation types, industry trends, and regions. Demand-side stakeholders, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Security Officers (CSOs); the installation teams of governments/end users using video processing platform; and digital initiatives project teams, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current use of services, which would affect the overall video processing platform market.
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Market Size Estimation
Both top-down and bottom-up approaches were used to estimate and forecast the video processing platform market and other dependent submarkets. The bottom-up procedure was deployed to arrive at the overall market size using the revenues and offerings of key companies in the market. With data triangulation methods and validation through primary interviews, this study determined and confirmed the exact value of the overall parent market size. The overall market size was then used in the top-down procedure to estimate the size of other individual markets via percentage splits of the market segments.
The top-down and bottom-up approaches were used to estimate and validate the size of the video processing platform market and various other dependent subsegments.
The research methodology used to estimate the market size included the following details:
- The key players in the market were identified through secondary research, and their revenue contributions in the respective countries were determined through primary and secondary research.
- This entire procedure included the study of the annual and financial reports of top market players and extensive interviews for key insights from industry leaders, such as Chief Executive Officers (CEOs), VPs, directors, and marketing executives.
- All percentage splits and breakups were determined using secondary sources and verified through primary sources.
All the possible parameters that affect the market covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. This data is consolidated and added with detailed inputs and analysis from MarketsandMarkets.
Video Processing Platform Market: Top-down and bottom-up approaches
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Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation and market breakup procedures were employed, wherever applicable. The data was triangulated by studying several factors and trends from both the demand and supply sides in the video processing platform market.
Market Definition
Video processing platform is a software or hardware system that is specifically designed to handle and process video data. It provides tools, algorithms, and resources for various video-related tasks, such as video encoding, decoding, transcoding, editing, streaming, and analysis. Video content such as TV shows, movies, and live streams are processed for delivery on-demand or via live broadcast. Video processing platforms are typically used in industries like broadcasting, media, surveillance, entertainment, education, and more. The major applications of video processing consist of video upload and ingestion, dynamic ad insertion, video transcoding and processing, video hosting, and content rendering.
Key Stakeholders
- Video processing platform providers
- Independent software vendors (ISVs)
- Investors and venture capitalists (VCs)
- Managed service providers
- Support and maintenance service providers
- Consulting firms
- System integrators (SIs)/Migration service providers
- Value-added resellers (VARs) and distributors
- Enterprise users
- Technology partners
- Technology providers
Report Objectives
- To define, describe, and forecast the global video processing platform market based on component, application, content type, vertical, and region
- To forecast the market size of the five major regional segments: North America, Europe, Asia Pacific, Middle East & Africa, and Latin America
- To strategically analyze the market subsegments with respect to individual growth trends, prospects, and contributions to the total market
- To provide detailed information related to the major factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze the macro and micromarkets1 with respect to growth trends, prospects, and their contributions to the overall market
- To analyze the industry trends, patents and innovations, and pricing data related to the video processing platform market.
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for major players.
- To profile the key players in the market and comprehensively analyze their market share/ranking and core competencies across segments and subsegments.
- To track and analyze the competitive developments, such as mergers and acquisitions, product developments, and partnerships and collaborations in the market.
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Product Analysis
- Product matrix provides a detailed comparison of the product portfolio of each company.
Geographic Analysis
- Further breakup of the Asia Pacific market into countries contributing 75% to the regional market size
- Further breakup of the North American market into countries contributing 75% to the regional market size
- Further breakup of the Latin American market into countries contributing 75% to the regional market size
- Further breakup of the Middle Eastern & African market into countries contributing 75% to the regional market size
- Further breakup of the European market into countries contributing 75% to the regional market size
Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Growth opportunities and latent adjacency in Video Processing Platform Market