The global video streaming market size was accounted for USD 42.6 billion, in 2019. It is estimated to grow at a CAGR of 20.4% during the forecast period, 2020 to 2027. Technological advancements such as artificial intelligence and block chain technology are anticipated to propel the growth of this market. Artificial intelligence is playing a major role in improving video and content quality by easing certain operations such cinematography, scriptwriting, editing, and voice-overs. Moreover, Netflix and YouTube are gaining high popularity among large consumer groups which is anticipated to further drive the market growth. In addition, increasing prevalence of social media coupled with rising penetration of smartphones are the factors projected to contribute to the market growth from 2020 to 2027.
Moreover, cloud-based video streaming solutions are gaining high popularity across Europe and North America owing to its effectiveness in increasing the video content reach. In addition, continuous innovations and advancements in technology are increasing the expectations of consumers regarding security, performance, and quality of video. For example, Akamai Technologies, in April 2019, delivered extraordinary video quality by spotlighting its innovations and initiatives at 2019NAB Show which was conducted in the U.S. This company took various initiatives in improving the demand for video streaming and live media solutions such as cloud interconnects, cloud wrapper, token authentication, direct connect, and VPN & proxy detection.
Consumers prefer different video streaming services and solutions owing to rising popularity of digital platforms across different sectors. For example, Google introduced its video game console called ‘Yeti’ which comprises of gaming hardware and video streaming services based on cloud solutions. On the other hand, Apple Inc. in Nov 2019 launched TV + service by entering in the online video streaming industry.
However, rising number of video streaming operators and service providers is one of the biggest threats to the existing giants in this industry. Moreover, television service providers are giving tough competition to the leading players like Netflix owing to rising popularity of streaming television space. For example, partnership of Google and Amazon.com, Inc. has enabled YouTube applications on Amazon Fire TV app is projected to pose one of the biggest challenges for other industry players.
Moreover, rising adoption of video streaming technology across the educational institutions is anticipated to further drive the market growth. Students can record the online seminars and tutorials to retain the information for future use. This improves the accessibility of useful data enabling better learning. This has boosted the demand for video lectures and online seminars owing to easy accessibility and convenience. Moreover, growing penetration of smartphones is anticipated to further drive the growth of video streaming market across the academic sector.
On the basis of streaming type, the market is categorized into nonlinear and linear video streaming segments. The linear segment dominated the market, in 2019 owing to rising adoption of digital devices such as smartphones and tablets. Moreover, availability of high-speed internet data at low cost in remote location is projected to surge the market growth. Furthermore, factors such as ad-free video streaming, mobile viewing, high-quality streams, and use of abundant amount of content are anticipated to drive the growth of linear video streaming over the forecast period.
The non-linear segment is projected to attain a significant growth from 2020 to 2027 due to factors such as series linking and convenience. Moreover, large capacity, zero buffering, live pause, and watch time feasibility are some of the major factors projected to propel the segment’s growth over the forecast period.
On the basis of solution, the market is categorized into pay-TV, internet protocol TV, and over-the-top (OTT). The segment of pay-TV solution accounted for the largest market share, in 2019 across the global market owing to rising demand in countries like Mexico, India, Brazil, and China. However, factors such as rising expenses of programming are projected to hinder the market growth. Therefore, majority of the consumers prefer OTT solutions over pay-TV solution.
The OTT segment is anticipated to register the fastest growth over the forecast period owing to factors such as availability of high-speed internet data at low-costs and rising government investments for public Wi-Fi. Moreover, growing trends such as content fragmentation, original digital content, and hybrid monetization models are anticipated to drive the popularity of OTT segment in the forthcoming years.
The market is categorized into smartphones and tablets, gaming consoles, smart TV, and laptops and desktops on the basis of platform. The segment of smartphones and tablets accounted for a notable market share, in 2019 owing to changing lifestyles of people, rising penetration of mobiles, availability of high-speed internet at low costs, increasing spending power, and ease of accessibility of data. The segment of smart TV is also projected to grow significantly from 2020 to 2027 owing to availability of TV channels and video streaming solutions on a common platform.
Mobiles and smartphones are considered to be one of the most preferred platforms for availing online video streaming services owing to its accessibility in remote locations and portability. However, shifting consumer preference towards smart TV owing to availability of TV channels and different streaming apps such as Hulu, PlayStation Vue, Sling TV, and YouTube on a common platform is anticipated to drive the growth of smart TV segment over the forecast period.
The market is categorized into training and support, consulting, and managed services on the basis of service. The segment of managed services is anticipated to grow at a steady rate over the forecast period. This growth is attributed to personalized services offered by this segment by combining OTT solutions and broadcast services.
Delivery of high quality content is attributed to high customer engagement which thereby propels the segment growth. Highly monetized managed services include metadata services and compliance, fulfillment and digital packing, and access services and localization. It helps in managing and monetizing video streaming services and OTT portals, which is anticipated to further propel the growth of this segment from 2020 to 2027.
The video streaming market is categorized into rental, subscription and advertising on the basis of revenue model. The segment of subscription revenue model accounted for the highest market share in 2019, and is anticipated to register a significant growth from 2020 to 2027. The subscription revenue model allows to access video streaming services by charging a subscription fee to the subscribers. For example, several monthly and annual subscription plans are offered by Netflix and other such players.
The segment of advertising revenue model operates by charging a specific amount to the advertisers. These advertisers have to pay huge amount to these video streaming service providers for advertising their products and services. Therefore, the advertising revenue model segment held the largest revenue share in the market. However, shifting of trend towards subscription segment owing to availability of original digital content on platforms such as Prime Originals and Netflix Originals is anticipated to propel the growth of subscription segment over the forecast period.
The market is categorized into on-premise and cloud on the basis of deployment. Cloud computing is one of the emerging concepts that will bring a great revolution in the video streaming industry. It is the major idea behind the video streaming platforms including Netflix and YouTube. It is anticipated to gain traction in Asia Pacific over the forecast period. Moreover, North American countries such as Canada and U.S. are the largest markets for cloud-based video streaming services.
Rising popularity and growing consumer inclination towards cloud-based video streaming services owing to high-speed data accessibility and high video content quality is anticipated to propel the segment’s demand. In addition, buffering issues are handled more efficiently by cloud-based solutions owing to cloud scaling. These factors are projected to drive the growth of cloud-based solutions from 2020 to 2027.
On the basis of user, the video streaming market is categorized into consumer and enterprise segments. The enterprise user category is further divided into training and development, knowledge sharing and collaborations, corporate communications, and marketing and client engagement. The consumer user segment accounted for the largest market share in 2019. It is further divided intoweb-browsing and advertising, real-time entertainment, gaming, e-learning and social networking.
Video streaming services are gaining high popularity among the consumer segment owing to provision of watching videos even at remote locations. Moreover, rising number of subscriptions through mobiles and rising penetration of smartphones are the factors projected to fuel the consumer segment’s growth. The segment of enterprise is anticipated to grow at the fastest rate from 2020 to 2027 owing to advancements in technology which are providing features such as captioning, video codec, transcoding and aggregation, real-time web-based communication, and indexing.
In 2019, North America held the largest share across the market owing to rising adoption of cloud-based deployment of services. Moreover, Europe constituted for a significant market share and is anticipated to grow at a steady rate due to rising popularity of video streaming services among large consumer group. In addition, Asia Pacific is anticipated to grow at the fastest rate from 2020 to 2027 owing to rising penetration and usage of tablets and smartphones, increasing popularity of video streaming services, and advancements in technology in the region. The OTT segment has enhanced the content quality in Asia Pacific. Moreover, availability of public Wi-Fi and presence of large number of broadband operators in this region has extended the opportunities of monetization especially in Southeast Asian Countries. All these factors are projected to propel the growth of the market in Asia Pacific.
Leading players operating in this industry include Amazon Web Services, Inc.; Akamai Technologies; Apple Inc.; Google; Cisco Systems, Inc.; Kaltura, Inc.; International Business Machine Corporation (IBM Cloud Video); Netflix; Wowza Media Systems, LLC; Hulu; and AT&T Intellectual Property.
Service Providers in this market are concentrating on enhancing their consumer reach for getting competitive advantage over other players. Moreover, they are focusing on mergers and acquisition, partnership, and collaborations. For example, Hive Streaming went into partnership with Kaltura, Inc. for delivering premium videos with enhanced quality to joint consumers.
Base year for estimation
Actual estimates/Historical data
2016 - 2018
2020 - 2027
Revenue in USD Billion and CAGR from 2020 to 2027
North America, Europe, Asia Pacific, South America, MEA
U.S., Canada, Mexico, Germany, U.K., France, China, Japan, India, and Brazil
Revenue forecast, company share, competitive landscape, growth factors, and trends
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This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Million Insights has segmented the global video streaming market report based on streaming type, solution, platform, service, revenue model, deployment type, user, and region:
• Streaming Type Outlook (Revenue, USD Billion, 2016 - 2027)
• Solution Outlook (Revenue, USD Billion, 2016 - 2027)
• Internet Protocol TV
• Over-the-Top (OTT)
• Platform Outlook (Revenue, USD Billion, 2016 - 2027)
• Gaming Consoles
• Laptops & Desktops
• Smartphones & Tablets
• Smart TV
• Service Outlook (Revenue, USD Billion, 2016 - 2027)
• Managed Services
• Training & Support
• Revenue Model Outlook (Revenue, USD Billion, 2016 - 2027)
• Deployment Type Outlook (Revenue, USD Billion, 2016 - 2027)
• User Outlook (Revenue, USD Billion, 2016 - 2027)
• Corporate Communications
• Knowledge Sharing & Collaborations
• Marketing & Client Engagement
• Training & Development
• Real-Time Entertainment
• Web Browsing & Advertising
• Social Networking
• Regional Outlook (Revenue, USD Billion, 2016 - 2027)
• North America
• Asia Pacific
• South America
• Middle East and Africa (MEA)
Research Support Specialist, USA