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Video equipment revenues to top $3.8bn in 2017

The worldwide video infrastructure equipment market will grow from US$ 2.8bn in 2012 to US$ 3.8bn in 2017, with video encoders leading in terms of sub sector growth, according to a new report from US firm ABI Research.

Video encoders revenues are expected to grow more than 10% annually over the next five years, while sales of classic video servers are forecast to increase 3% annually.

Other video equipment sub sectors covered by the report include video-on-demand, advertising, video servers, and CDN hardware.

“Significant consolidation is taking place within the video infrastructure hardware space,” said Adarsh Krishnan, senior analyst at ABI Research.

“In addition to the well-publicised acquisition by smaller Arris of larger Motorola – creating a more healthy and diverse company – Harmonic recently spun off a small and low-margin business to Aurora Networks.

“Mature hardware companies, including Cisco, Ericsson, and even Huawei are all turning their focus to higher margin services business as new entrants compete in well understood sections of the equipment space,” concluded Krishnan.

A separate report issued by US research firm Infonetics last year predicted that the rollout of multiscreen and TV Everywhere initiatives by operators around the world would drive 9% growth for the global video infrastructure market in 2012.

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