Video on Demand (VoD) is a system that plays programs according to the requirements of the audience and transmits the video content clicked or selected by the user. Video-on-demand services are emerging as unique media methods in recent years. They are the result of the integration of computer technology, network communication technology, multimedia technology, television technology, and digital compression technology.
Video on Demand (VoD) technology can be used not only in the broadband network of telecommunications but also in the broadband network of residential LAN and cable TV. Nowadays, in the process of building smart communities, computer network wiring has become a vital link. Community users can implement VOD (video-on-demand) applications through computers, televisions (with set-top boxes), etc., and enrich people’s cultural life. The two-way transformation can allow the majority of TV users to order video programs through the cable television network.
Global video on demand market size projected to reach over USD 122.06 billion by 2027 and registering with a CAGR of 13.45% during the forecast period, 2020-2027. The rising penetration of high-speed data networks and mobile subscriptions, mass adoption of mobile-connected devices, and advanced capabilities in smartphones are vital factors expected to drive the global Video on Demand (VoD) market in the future timeframe. Additionally, the availability of various devices that are compatible with online video viewing will lead to video on demand market growth in the upcoming periods. The smartphone market has seen unprecedented growth in the last five years. Smartphones have crossed 4.6 billion by 2019. This rise in the number of mobile devices is making it easier for consumers to access video content and music on the go.
Moreover, the increasing demand from consumers to integrate various devices to watch the content anytime and anywhere is critical and will augment the global video on demand (VoD) market in the projected time. Furthermore, time-shifted viewing, customer reach, customer experience, and the presence of networks and service providers supported by high-speed data likely to boost the video on demand industry.
According to world stats, in 2019, internet users were 4,536 million across the world. Every day over the past five years, an average of 640,000 people went online for the first time. With better access to the internet, improved networks, rising multimedia consumption, service-capable mobile devices, and application development ecosystem would happen on digital platforms. These growing internet penetration and mobile device proliferation and convenience of consuming the content anytime, anywhere, are the key drivers for this trend.
While the proliferation of mobile devices would enable digital media consumption, data prices, and anywhere connectivity is playing an equally important role in shaping digital media consumption habits among users. For instance, in India, the average data price per MB on mobile networks has fallen significantly. However, mobile data tariffs are likely to mirror the trends in the 2G market where voice tariffs in India are stabilizing after a long period of sharp fall.
Based on components, the global Video on Demand (VoD) market bifurcated into Solution and Services. The solution segment anticipated to gain significantly in the video on demand market share by 2027, as it provides video capture, editing, uploading, media resource management, automated transcoding processing, video audit analysis, and distribution acceleration.
The VOD service segment will drive by its benefits, such as provide access to a library of customizable themes.
Based on the solution, the global Video on Demand (VoD) market classified into Pay TV, Over-the-top (OTT) Services, and Internet Protocol Television (IPTV). The Internet Protocol Television (IPTV) segment predicted to lead the market due to the rising availability of broadband internet services, which helps in increasing the demand for IPTV when compared to conventional television services.
Over-the-top (OTT) Services will influence by its services that stream content to users using the internet as a replacement for pre-existing infrastructure.
Based on the business model, the global Video on Demand (VoD) market classified into Subscription video on demand (SVOD), Transactional video on demand (TVOD), Advertising Video on Demand (AVOD)) and others. The subscription video on demand share will reach a higher rate by 2027, as the user has to pay a subscription price to gain access to video streaming services. These subscribed users can use any videos at any duration, such as monthly, quarterly, half-yearly, and yearly.
Transactional video on demand (TVOD) will boost its benefits, such as it provides videos one at a time.
Based on the end-user industry, the global Video on Demand (VoD) market categorized into Media & Entertainment, Education & Training, Health & Fitness, Live Events, Sports, and Others. Media & Entertainment segment expected to gain maximum revenue by 2027 owing to the increasing internet speeds, together with the growing number of devices that support digital media is providing the freedom to the consumers so that they can access media content anywhere and anytime.
Based on region, the global Video on Demand (VoD) market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America estimated to occupy the lion’s market share by 2027 on account of the presence of major VoD solution providers in the USA and augmented mobility trends in the USA.
The Asia Pacific will drive by the propagation of smart devices, broadband, and internet connectivity, coupled with the emergence of advanced technologies, such as 5G and 4G.
Companies such as Netflix, Amazon, Google, YouTube, Apple, HBO, Cisco, Roku, IndieFlix, Vudu, Hulu, Comcast, Akamai, Huawei, Fujitsu, CenturyLink, Muvi, and Vubiquity are the key players in the Global Video on Demand (VoD) Market.
By Business Model
By End-User Industry