Increasing Adoption of Smartphone and Internet Services is Driving the Growth of Video On-Demand Market

Globally, the video-on-demand market is expected to grow with a CAGR of 9.2% during the forecast period from 2023 to 2030. The market is driven by the increasing adoption of the smartphones and internet across the globe. Over the past decade, the total number of smartphone users and internet users has increased significantly. In 2020, the total number of smartphone users and internet users were estimated to be approximately 3.3 billion and 3.9 billion respectively, and the number is further estimated to increase during the forward period. This growth is driven by the increasing disposal income of the population across the developing region.

Moreover, the decline in the price of the smartphone users and low priced data services is also acting as a major force driving the growth of the market. The growing need among the media and entertainment companies to provide better customer experience is also acting as a major driver for the growth of the market. The growing adoption of over the top (OTT) media services is also augmenting the growth of the video on demand market. However, the data safety and security issues associated with the use of video on demand service is inhibiting the growth of the market. 

SVOD is Estimated to Grow Significantly During the Forecast Period  

The video on demand market is categorized based on technology into subscription video on demand (SVOD), transactional video on demand (TVOD), AD based video on demand (AVOD). AVOD accounted for 55% in the revenue in 2020. However, the SVOD market is estimated to grow substantially during the forecast period. The growth of the market is driven by the increasing demand for unlimited content without ADs. Furthermore, the growing adoption of OTT platforms is also propelling market growth.

North America is Leading the Video On-Demand Market                              

North America accounted for more than 40% share in the video-on-demand market in 2020. The growth of the market is attributed to the high number of smartphone users and internet users in the region. Moreover, the increasing adoption of the OTT platforms in the region also served as a major driver for the growth of the market. Additionally, large scale content development in the region along with the rising collaboration activities between the content developers and content distributors is also accelerating the growth of the market.

The key players in the video on-demand market are Akamai Technologies Inc, Alcatel-Lucent, Amazon.com Inc, AT&T Inc, Avaya Inc, Cisco Corporation, Ericsson Corporation, Fujitsu, Huawei Technologies, Hulu LLC, Level 3 Communications, Netflix Inc, and ZTE Corporation.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Video On-Demand market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Video On-Demand market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Video On-Demand market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Video On-Demand market?
• Which is the largest regional market for Video On-Demand market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Video On-Demand market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Video On-Demand market worldwide?