Press release
With 7.6% CAGR, Video Encoders Market Growth to Surpass USD 3.3 billion
A video encoder is a hardware device dedicated to the video encoding process. It is an ideal solution for upgrading an analog camera to an Internet protocol (IP) camera cost-effectively. The video encoders market is estimated to be USD 2.3 billion in 2022 and is projected to reach USD 3.3 billion by 2027; it is expected to grow at a CAGR of 7.6% from 2022 to 2027. The major driving factors in the video encoder market include ease of connecting analog cameras using video encoder to a network, use of cloud services to store increasing amount of data, and adoption of high-efficiency video coding standards for video encoding. Key players in the video encoder market are focusing on research and development (R&D) to enhance the functionalities of the video encoders. Morevoer, growth in number of mobile-streaming videos and growing market for OTT services in developing countries are also promoted the growth of the video encoder market.Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=109133493
The video encoder market has been segmented based on the number of channels, type, application, and region. Based on type, the market has been segmented into standalone and rack-mounted video encoders. Standalone video encoders are beneficial in situations where only a few cameras are to be connected, while rack-mounted video encoders are useful in instances where large installations with analog cameras are required. The market for rack-mounted video encoders is expected to grow at the highest CAGR between 2022 and 2027. The adoption of standalone video encoders has increased in recent years, as they are cost-efficient and beneficial in situations that only need a few cameras to be connected. However, the rack-mounted video encoders segment accounts for a larger market share. This segment is also projected to register the highest CAGR during the forecast period.
The video encoder market is segmented, by application, into broadcasting and surveillance. Cable operators and broadcasters use video encoders to improve the video quality delivered to their customers. Surveillance applications cover various verticals, such as institutional, commercial, residential, transportation, retail, and military and defense. The use of security cameras in these verticals has helped increase the demand for video encoders. The market for the broadcasting application is expected to grow at highest CAGR between 2022 and 2027. The increasing adoption of encoders for broadcasting applications can be attributed to their benefits-increased capacity of transmission networks by improving spectrum efficiency (i.e., more data can be transmitted per unit bandwidth), improved signal quality and robustness, and lower energy consumption and maintenance costs.
The video encoder market has been segmented by the number of channels into 1-channel, 2-channel, 4-channel, 8-channel, 16-channel, and more than 16-channel video encoders. 1-channel or 2-channel video encoders are used for small-scale applications such as small shops or individual residents. 8-channel and 16-channel video encoders can be used for instances where many analog cameras are to be installed. The market for 1-channel encoders is expected to hold the largest share of video encoders market throughout the forecast period among security robot end users for UAV. Single-channel encoders are integral components of broadcast equipment, especially in the case of events with a large viewing audience. As the trend is shifting from standard-definition (SD) toward high-definition (HD), ultra-high-definition (UHD), and 4K, the significant demand for highly advanced video encoders is expected to sustain in the coming years.
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The video encoders market is segmented into four regions, North America, Europe, Asia Pacific, and Rest of the World (RoW).North America is estimated to be the largest market for video encoders. North America has always been at the forefront in terms of technological advancements, and their adoption in the telecom sector is not an exception. The North American market includes the US, Canada, and Mexico. Major players, such as Cisco, Harmonic, Inc., and Honeywell Security, among others, are headquartered in the region. North America is the world's most competitive and rapidly changing video encoder market. Moreover, the region is expected to grow and adopt new technologies faster than the Rest of the World. In North America, particularly in the US, the government has taken initiatives to implement surveillance systems at government buildings, public places, and educational institutes. However, RoW is expected to exhibit the highest growth rate during the forecast period. The increasing adoption of security cameras to enhance safety in countries in RoW boosts the video encoder market growth.
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