Digital video software market to exceed $9 billion by 2021
Wednesday, December 7th, 2016![IHS Markit logo IHS Markit logo](https://www.digitaltvnews.net/wp-content/uploads/logos/ihsmarkitcom.png)
Digital Video Software Revenue to Exceed $9 billion by 2021, IHS Markit Says
- Global digital video software market revenue to rise from $6 billion in 2015 to more than $9 billion by 2021
LONDON — The video software market is expected to exceed $9 billion in revenue by 2021, according to new insights released today by IHS Markit (Nasdaq: INFO), a world leader in critical information, analytics and solutions.
The atomization of media distribution and the switch from hardware-based technology solutions to cloud implementations are key drivers for the $3 billion in revenue growth over the next five years, according to the new Video Software, Security, and Analytics Intelligence Service from IHS Technology.
“Taken together, these two forces have created a market where value is shifting towards the frontend,” said Cecilia Zhu, analyst at IHS Technology. “A superior user-experience has become fundamental to securing increased consumer spend.”
Content security was the largest segment in 2015
Globally, content security accounts for 32 percent of the digital video software market. “While demand for robust security solutions is unlikely to deteriorate, particularly in the presence of high-value UHD and HDR content, the segment is effectively saturated,” Zhu said.
By contrast, Online Video Platform solutions will continue to generate large, year-on-year returns through 2021. “The necessity of online distribution backed by a platform pre-integrated across a rich ecosystem of partners, means demand for OVP solutions will rise over the next five years,” Zhu said.
North America secures the leading position
North America is the key region for the video software market, and generates roughly $2.9 billion. The region’s value relates primarily to confluence of three factors: the presence of large media companies, their outright scale, and their sheer number. “The region’s economic dominance should not, however, overshadow the existence of cutting-edge video services in Europe, Asia, and the Middle East, and the technology demand that these services generate,” Zhu said.
Cisco Systems takes the top spot
Cisco has a 15 percent share of the video software segment, the largest globally. “The company has proven adept at transitioning into the video space, and at using its longstanding presence in core, metro, and access-network infrastructure to cross and upsell video-specific software,” Zhu said.
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