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Video on Demand Market Analysis
The global video on demand market will touch USD 324.7 billion at an 18.20% CAGR by 2032, as per the recent Market Research Future report.
Market Segmentation
The global video on demand market is bifurcated based on content type and revenue model.
By revenue model, SvOD will lead the market in the forecast period.
By content type, TV entertainment will domineer the market over the forecast period.
Key Players
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Drivers
Increase in Mobile-based Internet Users to Boost Market Growth
The increase in mobile internet users is also due to operators implementing 5G networks more widely because of the demand for content and related services, which strains 4G LTE resources. Countries such as India and China have the highest monthly mobile internet usage. Appealing data packages offered by providers and millennials changing their video viewing behaviours are driving monthly user expansion.
Opportunities
Implementation of Technologies to offer Robust Opportunities
The adoption of artificial intelligence & machine learning algorithms is projected to create profitable prospects for the market, which will further boost the growth rate of the video on demand service market over the forecast period. Organizations have benefited from being able to determine the interests of their audiences and provide customized content recommendations to keep them engaged. Consequently, these AI-powered platforms deliver highly personalized experiences by displaying content to users that is specifically matched to their tastes.
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Restraints and Challenges
Piracy Concerns to act as Market Restraint
Rising concerns amid market players regarding video content protection and piracy, complicated government regulations, and lengthy licensing requirements may act as market restraints over the forecast period.
COVID-19 Analysis
The COVID-19 pandemic resulted in lockdowns globally. Because of travel restrictions during the pandemic, the video-on-demand industry has benefited from the lockdown. People worldwide were progressively streaming more entertainment. With more individuals choosing to remain at home, sales of on-demand and subscription streaming services have skyrocketed.
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Regional Analysis
North America to Lead Video on Demand Market
The North American region will be the leader in the video on demand market owing to rising investments from major companies and widespread adoption of advanced technologies including cloud computing and AI. Video on demand platforms leverage these technologies to efficiently automate video streaming processes. For example, in October 2020, NVIDIA Corporation launched the cloud-based Maxine platform, allowing developers to integrate GPU-accelerated AI into streaming video services. The NVIDIA Maxine suite is a cloud-based AI platform designed for video streaming applications.
Europe to Have Admirable Growth in Video on Demand Market
The video on demand market in Europe is projected to experience the fastest growth rate from 2023 to 2032 compared to other regions. This is attributed to the rising preference for internet video streaming services across the region. The growing demand for pay-per-view content and movies is significantly driving the regional market growth. Furthermore, Germany held the largest share of the video on demand market in Europe, while the UK was the fastest expanding video on demand market in the region.
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