The video on demand market size is predicted to reach USD 257.59 billion by 2029 and exhibit a CAGR of 17.6% during the projected period. Fortune Business InsightsTM has presented this information in its report titled, “Video on Demand Market, 2022-2029”. The market stood at USD 69.55 billion in 2021 and USD 82.77 billion in 2022.
The COVID-19 pandemic has boosted demand for smartphones, broadband connections, internet usage, and digital platforms like video streaming and conferencing. In addition, due to government restrictions and self-imposed social separation guidelines to avoid viral infection, movie theaters and shows were temporarily closed. As a result of the pandemic, there has been an increase in demand for VoD services among both new and existing customers.
Key market players increase expansion strategies to boost market growth
Alphabet, Inc., Amazon.com, Inc., Hulu LLC (The Walt Disney Company), AT&T, Inc., Netflix Inc., Apple, Inc., and others are key market players focused on providing online VoD services. These companies are forming a strategic alliance to expand their operations across borders. For instance, in July 2021, the Carlyle Group paid approximately USD 400 million for Liveu, a live video streaming company. This improves the video transmission and streaming service.
Growing adoption of smart devices and online streaming applications benefits Ggrowth
The increasing adoption of smart TVs, smartphones, and OTT platforms increases the volume of video-on-demand service traffic. According to a March 2020 report from Cisco Systems, Inc., mobile connectivity will be available to more than 70% of the world’s population by 2023. Global mobile subscriber rate is expected to increase from 5.1 billion (66% of population) in 2018 to 5.7 billion (71% of population) by 2023.
Online media consumption has increased dramatically in recent years. Mobile devices have surpassed desktop computers as the primary source of online media consumption. As smartphone popularity grows, so will data usage, resulting in an increase in online video consumption.
Furthermore, over-the-top (OTT) platforms are content providers that are rapidly expanding as more people seek entertainment through online channels. According to a ComScore report published in November 2021, more than 50 million households worldwide already have access to OTT video, which they watch at the same rates as traditional TV viewers. However, rising concerns among market participants about video content piracy and protection are expected to hinder the growth of the global video on demand market growth.
North America to hold the largest share of the global market
North America is expected to have the largest video on demand market share during the projected period. Key players in the region, including Amazon, Netflix, Apple Inc., and others, are concentrating on the development of advanced VoD services for users. Furthermore, North America is becoming increasingly diverse as a result of increased investment by major players and a surge in the adoption of advanced technologies such as cloud computing and artificial intelligence. VOD platform developers use these technologies to efficiently automate the video streaming process.
During the forecast period, Asia Pacific is expected to grow at the fastest CAGR. This growth is attributable due to the presence of a large customer base and an increase in mobile internet users across a variety of populous countries. global market players are expanding their footprint in this region due to increased demand from end-users for TV entertainment, music, sports, and other services.
The Middle East and Africa are expected to grow significantly during the projected period. The growth is due to the rapid growth of the media and entertainment industries. The Latin American market is also expanding at a moderate rate as a result of increased investment by the world’s leading companies. One of the driving factors is the increase in smartphone penetration and internet connectivity in Brazil, Argentina, Mexico, and other countries. Globe Newswire