The global video encoder market is expected to grow at a compound annual growth rate of 3.95% over the forecast period to reach a market size of US$2.067 billion in 2030, from US$1.704 billion in 2025.
A video encoder converts an analog video signal into a digital signal so that it can be sent to a decoder for viewing. The encoders are attached to a device, for example, to a video camera, and the streams are over an IP-based network such as the internet, intranet, LAN, etc., where consumers can see a live image or video from any web browser. There are many video encoders - 1 channel, 2 channels, 4 channels, 8 channels, 16 channels, and above, as they are mostly classified into single-channel encoders and multiple-channel encoders. Video encoders primarily have enabled online video viewing.
Encoding video makes live streaming possible because it lowers the bandwidth that would be necessary if the uncompressed video were transmitted. In addition, video encoding allows to conversion of the type of video file so that it can be sent to a variety of devices such as mobile phones, laptops, tablets, and so on. The high digitalization along with its worldwide technology saturation, is considered the key driving factor for the global video encoder market, which is predicted to be high by increasingly incorporating cloud-based software and cloud streaming.
Video encoders, which are usually used for broadcasting and surveillance applications, can signal other broadcasters over a number of networks to manage the frame-rate content in video production as opposed to streaming all video over just one channel. Encoders are used in surveillance for security purposes by digitizing video footage and allowing large amounts of data to be stored even in limited space.
With the emerging growth of an OTT platform, the global video encoder market is predicted to experience significant benefits. The increasing viewership of people indulging in OTT platforms such as Netflix, Amazon Prime, Hotstar, and others is likely to contribute to the video encoder market growth in the coming years. OTT content comprises audio-visual content sources, including movies and series directly viewable on gadgets like mobile, television, tablets, laptops, etc. As per the IBEF, India's video OTT space has the tag of a $1.8 billion revenue generator in 2022, and according to predictions, it will grow to twice that by 2027 with the increase in viewership from online OTT platforms which is dominated by Amazon Prime Video, Disney+ Hotstar, and Netflix.
The market for OTT is potentially growing along with a very healthy viewer graph. Digital consumption has sprung expansion with the best numbers achieved so far. Moreover, the rise in the number of latest and new product launches about video encoders by major market entities propelled the overall growth of the market in the following years. For example, in July 2024, Allegro DVT leading provider of video encoding and decoding semiconductor IP solutions-launched its E320 Video Encoder IP, compatible with the recently introduced VVC/H.266 codec. The nature of the VVC codec concerns a variety of video applications developed by the Joint Video Experts Team (JVET), including mobile telephony, VOD, broadcasting, OTT streaming, video conferencing, screen content, 360-degree, and various scalability coding offerings. The E320 video encoder IP is ready to meet the industry gaps as per resolution, bitrates, and latency.
Expanding demand for security systems in offices, government installations, and residences is leading to the growth of the global video encoder market. Growth is propelled by new technologies, increased high security, advancement in surveillance technology, cloud-based surveillance solutions, and an increase in the use of IoT. Modern surveillance systems rely on high-resolution cameras and analytics, offering very tight control over facilities, and producing vast quantities of video data that require video encoding.
The trend of surveillance in the cloud system has made video encoders gain growth in the features relating to accessibility and scalability. This need will be satisfied with the inclusion of encoders able to transmit video to the cloud without loss of quality. Further, the adoption of surveillance systems into the Internet of Things (IoT) opens a whole new set of opportunities for data analytics and security purposes. Thus, video surveillance systems consolidate the present and future opportunities across the world for the video encoder market.
North America holds a significant share of the global video encoder market, due to early technology adoption with a strong presence of technology industries, thriving media, and entertainment industry, as well as government initiatives. The growing adoption of new technologies has made the region have a strong infrastructure and workforce in the area of video encoding.
In addition, an extremely high demand for quality video content is causing the deployment of advanced solutions catering to video encoding in the region. Various activities to boost government initiatives in broadband infrastructure and digital media are also an added factor that fuels and strengthens the growth of the video encoder market in the region.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Video Encoder Market Size in 2025 | US$1.704 billion |
| Video Encoder Market Size in 2030 | US$2.067 billion |
| Growth Rate | CAGR of 3.95% |
| Study Period | 2020 to 2030 |
| Historical Data | 2020 to 2023 |
| Base Year | 2024 |
| Forecast Period | 2025 – 2030 |
| Forecast Unit (Value) | USD Billion |
| Segmentation |
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| Geographical Segmentation | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| List of Major Companies in the Video Encoder Market |
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| Customization Scope | Free report customization with purchase |