Video Streaming Software Market

[326 Pages Report] The video streaming software market is expected to grow from USD 13.3 billion in 2024 to USD 29.7 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 17.5% during the forecast period. The global video streaming software market continues to experience robust growth, driven by increasing internet penetration, rapid adoption of smartphones and smart TVs, and the rising demand for on-demand entertainment. The COVID-19 pandemic has further accelerated the growth of this market, as lockdowns and social distancing measures led to a surge in online streaming consumption. However, the market faces economic uncertainties from geopolitical tensions, inflationary pressures, and rising interest rates. Despite these challenges, the market is expected to witness sustained growth in the coming years, driven by technological advancements, expanding content libraries, and the proliferation of subscription-based models.

Technological integration plays a pivotal role in shaping the landscape of the video streaming software market, driving innovation, enhancing user experiences, and expanding the capabilities of streaming platforms. One of the most notable advancements is the integration of artificial intelligence (AI) and machine learning (ML) algorithms, which enable content recommendation, personalization, and predictive analytics. These technologies analyze user behavior, preferences, and viewing patterns to deliver tailored content suggestions, improving engagement and retention rates. Moreover, AI-powered video analytics offer valuable insights into audience demographics, content performance, and advertising effectiveness, empowering streaming services to optimize their offerings and monetization strategies. Additionally, adopting cloud-based infrastructure facilitates scalability, flexibility, and cost-efficiency, allowing streaming platforms to handle large volumes of data and traffic seamlessly. Furthermore, the integration of immersive technologies such as virtual reality (VR) and augmented reality (AR) is poised to revolutionize the streaming experience, offering immersive storytelling and interactive content formats.

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Recession Impact on the Video Streaming Software Market

The combined impact of the COVID-19 pandemic, the Russia-Ukraine conflict, inflation, and rising interest rates have created significant challenges for the global video streaming software market, particularly amidst economic downturns and recessions. The pandemic initially led to a surge in demand for video streaming services as people turned to digital entertainment and remote work solutions during lockdowns. However, the economic fallout from COVID-19 and geopolitical tensions such as the Russia-Ukraine conflict have created uncertainty and volatility in financial markets. Inflationary pressures and rising interest rates reduced consumer spending and tighter business budgets. As a result, companies may cut back on discretionary expenses, including investments in video streaming software and infrastructure. Additionally, advertising revenues, a key source of income for many streaming platforms, could decline as businesses scale back marketing budgets in response to economic challenges. Thus, the recession has a moderate impact on the global market.

Video streaming software market Dynamics

Driver:  Increasing demand for VOD streaming

VOD services allow users to conveniently access a vast content library without adhering to traditional broadcast schedules. This flexibility has led to a surge in demand for VOD streaming platforms, driving the development of innovative video streaming software solutions to meet evolving consumer preferences—the rapid expansion of subscription-based platforms such as Netflix, Amazon Prime Video, and Disney+.

These platforms offer a wide range of on-demand content, including movies, TV shows, documentaries, and original programming. In response to the growing demand for VOD streaming, video streaming software vendors have developed a range of products tailored to the needs of content creators, broadcasters, and streaming platforms. For instance, software solutions such as Brightcove, JW Player, and Kaltura offer comprehensive VOD streaming capabilities, including content management, transcoding, monetization, and analytics. These platforms empower content creators to deliver high-quality on-demand video experiences across various devices and platforms, driving user engagement and revenue generation. Additionally, the adoption of VOD streaming has expanded beyond traditional entertainment to sectors such as education, healthcare, and enterprise. For instance, educational institutions leverage VOD platforms such as  Panopto and Enghouse Systems to deliver online courses and training materials to students and employees,

Restraint: Cost of content creation and issues with Piracy

The cost of creating high-quality video content, including original programming, movies, and TV shows, can be substantial. Content creators and streaming platforms face significant investments in production, licensing, talent acquisition, and marketing to develop compelling content that attracts and retains viewers. These high production costs can act as a barrier to entry for new players in the market and may limit the availability of premium content on streaming platforms.

Additionally, Piracy undermines the revenue potential of legitimate streaming services by offering unauthorized access to copyrighted content for free or at a fraction of the cost. Pirated content deprives content creators of revenue, erodes consumer trust, and undermines the value proposition of licensed streaming services. The proliferation of illegal streaming sites and file-sharing platforms makes it difficult for streaming platforms to combat Piracy effectively, despite efforts to implement digital rights management (DRM) and anti-piracy measures. While technological solutions such as advanced DRM systems and content watermarking can help deter Piracy to some extent, the cost and complexity of implementing these measures can be prohibitive for smaller streaming platforms.

Opportunity: Emergence of 5G technology

5G technology offers significant opportunities for the adoption and evolution of video streaming software, revolutionizing how content is delivered, consumed, and monetized. 5G has ultra-fast download and upload speeds, significantly reducing latency and enabling seamless streaming of high-definition and even 4K video content on mobile devices. For instance, with 5G, users can stream high-quality videos on the go without experiencing buffering or delays, enhancing the overall viewing experience. The support of the 5G edge computing capabilities could revolutionize video streaming by bringing processing power closer to the end user. Streaming platforms can reduce latency and optimize content delivery by deploying edge servers at the network edge, ensuring smooth playback and minimizing buffering; this enables streaming platforms to deliver high-quality video experiences to users in real-time, even in congested network environments. According to a report by Ericsson, it is estimated that 5G subscriptions will reach 3.5 billion by the end of 2026, representing around 40% of all mobile subscriptions. This widespread adoption of 5G technology underscores its significant impact on the video streaming industry, providing ample opportunities for innovation, growth, and enhanced user experiences.

Challenge: Data security and privacy concerns

Video streaming platforms face various security challenges, including content piracy, data breaches, unauthorized access to user data, and malicious attacks targeting streaming infrastructure. Content creators and rights holders are particularly vulnerable to Piracy, as unauthorized distribution of copyrighted content results in financial losses and undermines the integrity of their intellectual property rights. Moreover, collecting and storing user data by streaming platforms raises privacy concerns, as users may risk having their personal information compromised or misused. In response to these threats, streaming platforms and content creators invest in advanced security measures, such as encryption, digital rights management (DRM), watermarking, and content moderation tools, to protect against unauthorized access and Piracy. Additionally, regulatory bodies are increasingly scrutinizing data privacy practices in the streaming industry, leading to stricter compliance requirements and regulations to safeguard user privacy and ensure data security.

Video Streaming Software Market Ecosystem

Based on connected devices, the mobile devices segment will record the highest market share in 2024.

Mobile devices have become central to the video streaming software market, with smartphones and tablets as primary platforms for accessing digital content on the go. The Netflix mobile app lets users stream a vast library of movies and TV shows directly on their smartphones or tablets. Users can create personalized profiles, receive recommendations based on their viewing history, and download content for offline viewing, making it a popular choice for mobile streaming. Another instance where TikTok has emerged as a dominant force in short-form video content, with its mobile app allowing users to create, share, and discover short videos ranging from comedy sketches to lip-sync performances. With its addictive feed, personalized recommendations, and viral challenges, TikTok has become a cultural phenomenon, driving significant engagement on mobile devices. Further, wearable devices are increasingly integrated into broader wearable ecosystems, enabling seamless connectivity and interoperability with smartphones, tablets, and smart home devices. For example, smartwatches can control video playback on streaming apps installed on smartphones, providing users with a unified entertainment experience across multiple devices.

Based on streaming type, the live streaming segment will grow at a higher CAGR during the forecast period.

Live streaming is a dynamic and increasingly popular feature within the video streaming software market, offering users the ability allowing users to broadcast real-time video content over the internet to a global audience. This technology has witnessed exponential growth in recent years, fuelled by advancements in internet infrastructure, the proliferation of mobile devices, and the rise of social media platforms. Live streaming has become a dominant force in the digital landscape, with platforms like Twitch, YouTube Live, and Facebook Live experiencing significant user engagement and viewership numbers. For instance, Twitch, a leading live-streaming platform for gamers, reported an average of over 2.45 million concurrent users in 2023. Similarly, YouTube Live has seen a surge in live streaming activity, with content creators and brands leveraging the platform to host live events, product launches, and Q&A sessions. In addition to entertainment and gaming, live streaming has been widely adopted in various other domains, including sports, news, education, and e-commerce. Major sports leagues and broadcasters have embraced live streaming to reach global audiences and enhance fan engagement, with live sports events accounting for a significant portion of online streaming traffic. Moreover, the COVID-19 pandemic has accelerated the adoption of live streaming across industries, as organizations and individuals turned to virtual events and remote communication solutions to maintain connectivity and continuity amidst lockdowns and social distancing measures

Based on region, North America holds the largest market share during the forecast period.

North America is witnessing rapid growth in the video streaming software market due to technological advancement and increasing demand for online streaming content. The large video streaming software industry companies belong to North America, making it the largest provider of solutions, products, and services. North America accounts for a significant share of the global video streaming software market, with key players such as Netflix, Amazon Prime Video, Disney+, Hulu, and others shaping the landscape. Netflix has adopted AI integration to provide personalized experiences to users. Google has come up with CDN tools for media streaming. The US and Canada are the top contributors to the market in the region. The new developments and enhancements in video streaming services, such as interactive videos and personalized video content, have increased the demand for video streaming.

According to Bank of America, despite the rising subscription cost, more households are spending over USd 100 monthly on streaming. The percentage of households making monthly streaming payments rose by over four percentage points in January 2024 compared to the same period in 2021. Key factors driving this rapid growth include advancements in personalization and AI technologies, the rising popularity of live streaming, global efforts in content licensing, the adoption of higher quality 4K and 8K streaming, and the evolution of interactive content experiences.

Key Market Players

The video streaming software market is dominated by a few globally established players such as IBM (US), Brightcove (US), Kaltura (US), Edgio (US), Vimeo (US), Agile Content (Spain), Haivision (Canada), Panopto (US), Enghouse Systems  (Canada), Akamai (US), Netgem Group (France), Dailymotion (France), Hive Streaming (Sweden), Blue Billywig (Netherlands), JW Player (US), Wowza (US), Vbrick (US), movingimage (Germany), VIDIZMO (US), Kollective Technology (US), Dacast (US), MediaPlatform (US), CONTUS TECH. (US), Zixi (US), VIXY (Netherlands), uStudio (US), Vidyard (Canada), SproutVideo (US), Castr (Canada), and Muvi (US), among others, are the key vendors that secured video streaming software contracts in the last few years. These vendors have global and local presence in the video streaming software market. The market is witnessing significant growth, driven by evolving learning needs, technological advancements, and the increasing adoption of digital streaming solutions across various industries. Vendors are focusing on continuous product innovation to differentiate themselves in the market; this includes developing user-friendly interfaces and incorporating advanced features such as AI-driven live and on-demand video streaming solutions and mobile-based video streaming software solutions to offer enhanced customer service.

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Scope of the Report

This research report categorizes the video streaming software market to forecast revenue and analyze trends in each of the following submarkets:

By Offering:

• Solutions
  • Transcoding & Processing
  • Video Hosting
  • Video Content Management
  • Video Analytics
  • Video Security
  • Other Solutions
• Services
  • Professional Services
    • Consulting
    • Integration & Implementation
    • Support & Maintenance
  • Managed Services

By Streaming Type:

• Live Streaming
• Video-On-Demand Streaming

By Monetization Model:

• Subscription-Based
• Advertising-Based
• Transaction-Based

By Deployment Mode:

• Cloud
• On-premises

By Connected Devices:

• Streaming Sticks & Media Players
• Mobile Devices
• Other Devices

By Delivery Channel:

• Web-based Delivery
• Mobile App Delivery

By Vertical:

• Media & Entertainment
• BFSI
• Academia & Education
• Healthcare
• Government
• Other Verticals

By Region:

• North America
  • United States
  • Canada
• Europe
  • United Kingdom
  • Germany
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America     

Recent Developments:

• In April 2024, Accedo and Brightcove, with Al Sharqiya Group, launched Iraq's first SVOD platform to enhance the 1001 OTT service, offering ad-free premium content alongside live linear channels. Initially an AVOD service, 1001 caters to global Arabic-speaking audiences with localized content in Arabic and English, featuring collaborations with OSN+, Rotana, and StarzPlay to deliver an extensive on-demand catalog. This partnership pioneers innovative, customer-centric media solutions in the Middle East.
• In 2023, Kaltura's Cloud TV and Streaming Platform launched enhancements for its TV operators and media customers, improving user experience and boosting revenue with personalized add-ons. These enhancements include Business Insight for data-driven decisions, Shop-in-Shop for content management, and advanced monitoring tools for real-time system control, empowering customers to expand services and drive revenue growth in cloud TV.
• In January 2023, IBM announced enhancements to its video streaming software, including features such as customizing event registration forms with dynamic fields based on user selections and improving data collection. Update published event registration forms seamlessly without unpublishing them first, ensuring uninterrupted registration processes.
• In June 2022, Edgio announced the successful completion of Limelight's acquisition of Edgecast. The combined company operates as Edgio, delivering significantly increased scale and scope with diversified revenue across products, clients, geographies, and channels and an expanded total addressable market of USD 40 billion.

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