Global video encoders market to exceed US$3.2bn by 2015, according to new report

December 3, 2007 – The global video encoders market will maintain a compound annual growth rate (CAGR) of over 22% during the period 2005-2015, and exceed US$3.2bn by the end of 2015, according to a new report from market research firm Global Industry Analysts.

The IPTV sector is forecast to exceed all other platforms for the video encoders market, with a projected CAGR of 30.65% over the period 2005-2015.    The broadband and cable TV sector is expected to dominate the global market for video encoders in the period with a share estimated at 48.95%.

The entry of telcos into IPTV is expected to boost demand for advanced video encoders such as H.264/AVC up to the year 2015.  The transition from MPEG-2 to more advanced formats such as MPEG-4/H.264 and VC-1 is expected to encounter resistance from end-users “reluctant to make an immediate transition to the new formats, mainly due to their recent investments in MPEG-2 and lack of universally accepted standards.”  This situation is expected to be resolved as the market matures further and the capabilities of the new formats “become more apparent”.