Video Encoding and Transcoding Market - Shares And Strategies Of Key Players

The demand for video streaming services is expected to increase due to proliferation of online media content service on the internet and mobile platforms globally. Video encoding and transcoding equipment plays a pivotal role in enabling faster delivery of media content over the internet to end-users. Video encoder helps to convert an analog based video content to digital format which is then compatible to run on internet and mobile devices. On the other hand, a video transcoder is used to convert an existing digital video content to another digital format for smooth functioning in a device. For example, a conversion of MP3 music file to WMV file can be termed as video transcoding.

The primary function of both encoder and transcoder is to retain the video quality while converting to a different video format. However, there is considerable loss of video quality based on technology used for conversion. Video encoders are available in the form of software and hardware based encoders. Hardware based video encoders primarily find application among broadcasting and cable operators due to its specialized encoding capabilities in video conversion. Video encoders enable broadcasters to reduce network congestion and allow high data bandwidth that can be further utilized for other purposes. Software based video encoders provide many codecs to customize bit-rate and video quality. Also, it is easy to upgrade software encoders as compared to hardware encoders. However, the cost of hardware based encoder is high when compared to software based encoder due to the high latency speed characteristic in software encoder. The same applies to software and video based transcoder solution.

A typical example of hardware based video transcoding is computer based graphic card. Graphic card used for gaming purposes works as a transcoder to convert compressed video into high quality video gaming output. Furthermore, the demand for video transcoder is expected to increase owing to high demand for multiscreen video services. Multiscreen video means transformation of video content into multiple video format having different resolutions and bit-rates for devices such as TV, smartphone, tablet and personal computer. Additionally, introduction of high efficiency video coding (HEVC) or H.265 is anticipated to boost the demand for video transcoders among network operators and media companies in the coming years.

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Another key aspect with respect to this market is that the demand for software based video encoder and transcoders would increase owing to the increase in adoption of cloud technologies. Some of the software providers have currently started providing these services through cloud model. However, the key challenge for the market lies in the replacement of old hardware based encoders and transcoders with new technology based products. This challenge can be specifically witnessed in media and entertainment, and telecommunication industry as it is difficult to replace the equipment frequently due to its high initial cost.

The application of video encoding and transcoding is expected to increase in education, media and entertainment, telecommunication, broadcasting, IT and gaming. The market can be segmented on the basis of type into hardware and software based solution.

Some of the key global video encoder and transcoder providers in the market are Intel Corporation, Encoding.com Inc., NVIDIA Corporation, Imagine Communications Corporation, VBrick Systems, Inc., Wowza Media Systems, LLC, ActiveVideo Networks, Inc. and HaiVision Systems, Inc.

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