Digital video software market to exceed $9b by 2021

Staff writer
20 Dec 2016
00:00
News
Daily News

The video software market is expected to exceed $9 billion in revenue by 2021, according to a new report recently released by IHS Markit.

The atomization of media distribution and the switch from hardware-based technology solutions to cloud implementations are key drivers for the $3 billion in revenue growth over the next five years, according to the new Video Software, Security, and Analytics Intelligence Service report from IHS Technology.

“Taken together, these two forces have created a market where value is shifting towards the frontend,” said Cecilia Zhu, analyst at IHS Technology. “A superior user-experience has become fundamental to securing increased consumer spend.”

Globally, content security accounts for 32% of the digital video software market. While demand for robust security solutions is unlikely to deteriorate, particularly in the presence of high-value UHD and HDR content, the segment is effectively saturated.

North America is the key region for the video software market, and generates roughly $2.9 billion. The region’s value relates primarily to confluence of three factors — the presence of large media companies, their outright scale, and their sheer number.

The region’s economic dominance should not, however, overshadow the existence of cutting-edge video services in Europe, Asia, and the Middle East, and the technology demand that these services generate.

Cisco has a 15% share of the video software segment, the largest globally. The company has proven adept at transitioning into the video space, and in using its longstanding presence in core, metro, and access-network infrastructure to cross and upsell video-specific software.

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