Cloud Video Segment Expected to Surpass 25% of the Enterprise Video Solutions Market by 2023
Oyster Bay, New York - 29 Nov 2018
ABI Research, a market-foresight advisory firm providing strategic guidance on the most compelling transformative technologies, forecasts the enterprise video solutions market to pass US$49 billion by 2023. While changes in viewer behavior and the shift from on-prem hardware to cloud services have posed challenges to some market segments such as encoders/transcoders, middleware, and conditional access (CAS), new opportunities in OTT and cloud video are adding fuel to the market – UHD and ongoing codec transitions (e.g., HEVC) will also help balance out declines and slowing growth in some pay TV markets.
“Video services and operators are increasingly moving workflows and operations to the cloud – doing so allows companies to better scale operations both up and down to meet demand and helps lower CAPEX spend, particularly among those companies without extensive history in the OTT space. These changes also reflect the need for video platforms and services to be more flexible to meet the needs of a wider breadth of customers and, ultimately, end viewers,” explained Michael Inouye, Principal Analyst at ABI Research.
The video market is expected to grow at a 4.8% CAGR from 2017 to 2023, but the increasing trend of moving to the cloud will help the cloud video segment achieve a stronger 11.7% CAGR. Beyond the spread of cloud content and services, the industry is also looking forward to upcoming opportunities that will enrich the value proposition of content and, where possible, gain efficiencies to reduce costs.
“The video industry is an interesting space, with aspects of the market undergoing significant transitions and a regional diversity that sees subscriber losses in the United States but continued growth in others such as the Asia-Pacific. On the horizon: AI and advanced advertising are expected to help achieve some of the earlier stated goals around value proposition and efficiencies. In addition, other technologies and services, such as those in the smart home, will create new opportunities for operators to engage with customers – all of which will further redefine what it means to watch TV,” Inouye concluded.
About ABI Research
ABI Research provides strategic guidance for visionaries needing market foresight on the most compelling transformative technologies, which reshape workforces, identify holes in a market, create new business models and drive new revenue streams. ABI’s own research visionaries take stances early on those technologies, publishing groundbreaking studies often years ahead of other technology advisory firms. ABI analysts deliver their conclusions and recommendations in easily and quickly absorbed formats to ensure proper context. Our analysts strategically guide visionaries to take action now and inspire their business to realize a bigger picture. For more information about ABI Research’s forecasting, consulting and teardown services, visionaries can contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
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