Global Video Encoder Market Size By Type (Stand-alone and Rack-mounted), By Application (Surveillance, Broadcast), By Geographic Scope And Forecast

Video Encoder Market Size And Forecast

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Video Encoder Market size was valued at USD 1.44 Billion in 2023 and is projected to reach USD 2.3 Billion by 2030, growing at a CAGR of 3.60 % during the forecasted period 2024 to 2030.

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• A video encoder is an electronic device or software application that converts analog video signals into digital data for efficient transmission, storage, and playback. This technology plays a vital role in broadcasting, surveillance, streaming and video production sectors.

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• It is basically a compression process that reduces the size of video data file, making its playback, storage, and transmission manageable on other devices.

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• Increasing consumption of video substantially drives the demand for innovative and efficient video encoding solutions.

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• The penetration of the internet has completely revolutionized video technology by modernizing the transitioning process, making real-time and on-demand video streaming possible.

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• Video encoder helps connect a network video system with an analog CCTV video surveillance or broadcast using IP-based network, web browser, or video management software. Thus, its rising demand in various sectors is projected to fuel the expansion of the Video Encoder Market.

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Global Video Encoder Market Dynamics

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Key Drivers

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• Growing Popularity of Video Streaming: The increasing popularity of online video streaming services, social media platforms, and video games creates a huge demand for video content. This is leading to a growing demand for video encoders to compress and deliver video content efficiently.

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• Evolution in Video Compression Technology: With the development of new algorithms and techniques, video compression technology is revolutionizing. Such advancements help improve compression efficiency and maintain video quality, and create resourceful opportunities for the video encoders market.

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• Rising Demand for Cloud-Based Video Encoding: The scalability, flexibility, and cost-effectiveness of cloud-based video encoding services is likely to drive its application. It also allows content creators and broadcasters to encode their video content without investing in expensive hardware and software.

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• Expansion of the Internet of Things (IoT): Growing awareness about the IoT is spurring the demand for video encoders to encode video streams from IoT devices, such as security cameras and wearable devices. This is creating new opportunities for the Video Encoder Market.

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• Introduction of 4K and 8K video: The rising adoption of 4K and 8K video is driving the demand for video encoders with the goal of supporting these higher resolutions. In comparison to conventional HD video, 4K and 8K video require significantly more bandwidth. Thus, encoders play a crucial role in reducing file sizes and ensuring smooth playback.

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Key Challenges

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• High Cost When Transitioning: The latest video compressing technology, HEVC (H.265) is highly efficient compared to the conventional ones MPEG-2 and MPEG-4. The transitioning from conventional technology to the latest standards proves costly and issues in patent licensing and bandwidth. Thus, the cost associated with the transition is likely to challenge the market growth.

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• The complexity of Video Encoding Standards: The constant upgrading of video encoders increases the complexity and computational requirements, thereby lowering its adoption by businesses and organizations.

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• Maintaining Video Quality at High Compression Ratios: The Challenge of maintaining quality during high compressions poses a major challenge for the application of video encoders in various businesses.

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• Issues Associated with Protecting Intellectual Property Rights: Video content often contains valuable intellectual property (IP). Thus, the encoders need to incorporate secure mechanisms for protecting IP rights and preventing unauthorized copying or distribution of encoded video data. This concern is likely to restrain the growth of the market.

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Key Trends

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• Growing Demand for OTT Services: The growing popularity of OTT services is projected to create significant growth opportunities for the Video Encoder Market. The use of the internet to provide audio and video content in the OTT, further emphasizes the use of encoders. Also, the rising use of smart TVs, laptops, and computers expands the OTT business, propelling the market.

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• Rise in Mobile Video Streaming Activities: The adoption of digitization and video content delivery networks (CDN) by various businesses provides a wider scope for the use of mobiles for video streaming. Also, the growing popularity of Facebook and YouTube is projected to further increase the activity of mobile video streaming. This growth is likely to bolster the growth of the market.

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Global Video Encoder Market Regional Analysis

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Asia Pacific

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• The growing number of terrorist activities and data theft in Asia Pacific drives the demand for surveillance cameras. The increasing use of video surveillance for constant monitoring is projected to bolster the demand for video encoders.

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• Also, the rising popularity of social networking websites in the region has increased the use of broadcasting services. This is one of the primary factors likely to boost the adoption of video encoders.

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• The video encoders market in Asia Pacific is anticipated to continue growing at a faster rate during the forecast period.

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North America

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• North America is one of the primary consumers of video encoders and the demand continues to grow in the coming years.

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• Growing criminal activities and drug pedaling cases in the U.S. is driving the need to install surveillance cameras in public and restricted spaces. This need creates lucrative opportunities for the market in the region.

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• In addition to this, rising influence of entertainment and media in the region increases the use of OTT services and social networking websites, attributing to the growth of the Video Encoder Market.

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Global Video Encoder Market Segmentation Analysis

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The Global Video Encoder Market is segmented on the basis of Type, Application, And Geography.

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Video Encoder Market, By Type

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• Stand-alone

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• Rack-mounted

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Based on Type, the global Video Encoder Market is divided into stand-alone and rack-mounted. Rack-mounted video encoders play a significant role when several analog cameras with coaxial connections are involved. Multiple cameras can be connected to and managed by a central rack. Without covering, a video encoder blade performs as a video encoder. The blade must be put in a standard-sized rack to function because it cannot run independently. FA rack offers an expandable and helpful solution. For connecting several video encoder fans, one, four, or six analog cameras can fit on a video encoder blade. The business for rack-mounted video encoders is rapidly expanding due to the widening spectrum of new product introductions.

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Video Encoder Market, By Application

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• Surveillance

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• Broadcast

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• Contribution Encoders

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• Distribution Encoders

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Based on Application, the global Video Encoder Market is divided into Surveillance, Broadcast, Contribution Encoder, and Distribution Encoder. The media and entertainment sectors have undergone significant change over the past ten years, opening up many opportunities for traditional broadcasters. In the established media value chain, media is created for a particular channel and then distributed to millions of people worldwide. The most significant change in the broadcasting sector is transmitting media content to any device with an internet connection. Independent of their location, prominent media services are available to individual clients via various devices, including video streaming. The rapid acceptance of different online informational media and the development of high-quality viewing-enabled gadgets like computers and mobile phones are propelling the segment’s expansion.

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Key Players

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The Video Encoder Market is rapidly growing due to continuous innovations from leading players and new market entrants. The global Video Encoder Market is currently led by Telairity, Hikvision, AB Haivision, Noorsat, VITEC Group, Primecom Technologies, CISCO, Panasonic Security Solutions, Honeywell Security Group, ACTi Corporation, Ateme, Axis Communications, Anvato, Coconut, Cathexis Technologies, Z3 Technologies, Niagara Video Corporation, Beamr, Merit LILIN Ent. Co., Ltd., Dahua Technology, Imagine Communications, Bosch Security Systems, Elecard, MediaKind, Motorola, Matrox, Pelco, CommScope Holding Company, Inc., etc.

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Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

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Key Developments

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• In 2020, Motorola acquired Pelco for USD 110 Million with a primary goal of expanding its video encoding business in the coming years.

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• In June 2021, Motorola developed 2 MPPEG-4 encoders for delivering better HD and SD video services.

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• In March 2022, Matrox introduced Monarch EDGE 4k/Multi-HD H.264 encoder with remote production and webcasting features. It offers quality up to quad 1920×1080 at 60 fps.

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• In April 2022, VITEC developed a broad-cast quality openGear (OG) card encoder, HEVC, H.264, the MGW diamond + OG, MPEG-2 encoder with SDI and SMPTE-2110 input with openGear card format, and 4k/multichannel HD.

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Report Scope

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Research Methodology of Market Research:

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Reasons to Purchase this Report

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• Qualitative and quantitative analysis of the market based on segmentation involving both economic as well as non-economic factors
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• Provision of market value (USD Billion) data for each segment and sub-segment
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• Indicates the region and segment that is expected to witness the fastest growth as well as to dominate the market
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• Analysis by geography highlighting the consumption of the product/service in the region as well as indicating the factors that are affecting the market within each region
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• Competitive landscape which incorporates the market ranking of the major players, along with new service/product launches, partnerships, business expansions, and acquisitions in the past five years of companies profiled
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• Extensive company profiles comprising of company overview, company insights, product benchmarking, and SWOT analysis for the major market players
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• The current as well as the future market outlook of the industry with respect to recent developments which involve growth opportunities and drivers as well as challenges and restraints of both emerging as well as developed regions
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• Includes in-depth analysis of the market from various perspectives through Porter’s five forces analysis
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• Provides insight into the market through Value Chain
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• Market dynamics scenario, along with growth opportunities of the market in the years to come
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