The global video streaming market is expected to worth US$223.98 billion by 2028, according to a new report by Grand View Research, with the compound annual growth rate (CAGR) at 21% from 2021 to 2028. In contrast, the market is worth an estimated US$59.14 billion in 2021.
Growth in Asia Pacific
The Asia-Pacific region is projected to demonstrate growth at the highest CAGR over the forecast period, attributed to the increasing use of mobiles and tablets, rapid technological advancements, and popularity of online streaming.
The popularity of cloud-based video streaming in the Asia-Pacific region is contributing to the growth, Grand View said, fuelled by rapid digitalisation, the increased use of mobile devices, and high-speed internet connectivity.
Over-the-top (OTT) video streaming solutions have further transformed content consumption behaviour in the Asia-Pacific region. Incumbent telecommunication providers and multi-channel operators in this region have also proactively pursued business innovation and advancement using video streaming for advanced marketing.
Various initiatives by service providers are contributing to the growth in the Asia Pacific region, said Grand View. Operators in Southeast Asia have expanded monetisation opportunities by offering the fast-growing broadband internet population multi-channel video streaming services along with fixed-mobile packages.
Grand View also commented that the COVID-19 outbreak has had a positive impact on video streaming viewership and engagement.
The company noted that viewership of video streaming services has drastically risen across the globe as more people stay home and turn to online entertainment. Video streaming platforms such as Netflix, Amazon Prime Video, YouTube, and Disney+ registering spikes in their viewership worldwide.
In March 2020, the viewership of Twitch increased by 31% as more individuals connected with the live streaming platform, Grand View added.
Cloud-based deployments have the advantage of large bandwidths and high speeds, leading to better viewing experiences. In addition, cloud-scaling helps in increasing the bandwidth and dealing with buffering and latency issues. This has driven some streaming service providers to migrate from on-premises to the cloud.
In terms of deployments, the cloud-based segment in Asia-Pacific is expected to grow at the highest CAGR in coming years, Grand View predicted.
Technology as drivers
According to the consultancy, technological advances such as blockchain for video streaming and artificial intelligence (AI) to improve video quality are expected to boost demand over the forecast period.
AI is of particular interest as it is now found in editing, cinematography, voice-overs, scriptwriting, and several other aspects of video production and upload, Grand View maintained. Various video streaming solution providers are using AI to improve the content quality of videos as well.
The research further suggests that live video will have the highest growth over the forecast period.