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Video infrastructure markets to grow 37% over next 5 years

Sam Rosen

Sam Rosen

Bucking the trend for virtualization, video infrastructure markets (including broadcast pre- and post-production, video encoding, and VOD and CDN hardware) are expected to continue to grow at a relatively healthy pace of 37% over the next 5 years.

The findings are from ABI Research’s market data Video Hardware: Encoders, VOD Servers, and CDN. “Broadcasters and operators virtualizing their workflow are likely to buy classic IT servers, while continuing to rely on video specialists for their application and software requirements,” explains ABI Research Practice Director Sam Rosen. “This means that video vendors are supplying less of the total solution; however, rising overall business complexity of areas, including ad workflows and over-the-top delivery, are offsetting this downward pressure on revenues.”

According to ABI, encoder and transcoder market represents the brightest spot in the video industry. Growth in this sub-market is at 9% annually, compared to 6% in the broadcast pre- and post-production market, and between 4% to 5% in the satellite and VOD / CDN markets.

“Both traditional drivers—including increased channel counts in many markets together with encoding density to mitigate spectrum considerations—as well as new applications, including multiscreen currently and truly mobile video services in the next 3 to 5 years, also contribute,” adds Research Analyst Eric Abbruzzese.

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