Global digital video software market revenue to rise from $6 billion in 2015 to more than $9 billion by 2021
LONDON (7 December 2016) – 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.
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 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.
About the VSSAI Service
Video Software, Security, and Analytics Intelligence (VSSAI) allows vendors, media companies, institutional investors, and strategic investors to benchmark competitor activity, track the flow capital in the market, and understand where value-creation is taking place across frontend and UX-related technologies.
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IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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