Advanced Video Coding in India Trends and Forecast
The future of the advanced video coding market in India looks promising with opportunities in video streaming, broadcasting, video conferencing, and surveillance applications. The global advanced video coding market is expected to reach an estimated $4.8 billion by 2031 with a CAGR of 4.3% from 2025 to 2031. The advanced video coding market in India is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the significant demand for high-quality video content, the rising popularity of online video streaming, and the expanding 4K and 8K video markets.
• Lucintel forecasts that, within the type category, H.264/MPEG-4 AVC is expected to witness the highest growth over the forecast period as it offers a good balance of compression efficiency and video-quality computer systems.
• Within the application category, video streaming is expected to witness the highest growth over the forecast period due to the growing need for AVC to provide high-quality video compression and guarantee seamless streaming and playback on YouTube, Netflix, and Amazon Prime.
Emerging Trends in the Advanced Video Coding Market in India
The advanced video coding market in India is evolving rapidly due to a variety of technological advancements and growing demand for high-quality video content. Factors such as increased mobile video consumption, 5G network expansion, the rise of OTT platforms, and the shift towards efficient video codecs like HEVC and AV1 are shaping the market. These trends reflect the need for more efficient, scalable, and cost-effective video compression solutions. As India continues to embrace digital transformation, video coding technologies will play a critical role in enhancing user experiences across different platforms.
• Growing Demand for Mobile Video Streaming: India has witnessed a surge in mobile video streaming, driven by the increasing penetration of smartphones and affordable data plans. Mobile video consumption is expected to continue growing, pushing the need for efficient video coding solutions. Advanced video codecs such as HEVC and AV1 are becoming crucial to deliver high-quality video with minimal data usage, ensuring smooth streaming experiences for users in both urban and rural areas. This trend emphasizes the importance of optimizing video compression for mobile-first audiences.
• Expansion of 5G Networks: The rollout of 5G networks in India is set to revolutionize the advanced video coding market. 5G offers ultra-low latency, faster speeds, and greater bandwidth, enabling the delivery of high-definition and 4K video content on mobile devices. This requires highly efficient video codecs capable of delivering high-quality content without overburdening network resources. As 5G adoption increases, demand for advanced video codecs like HEVC and AV1 will grow, driving innovation in video compression technologies to meet the new requirements of the mobile video ecosystem.
• Growth of OTT Platforms: The rise of OTT platforms like Netflix, Amazon Prime Video, and regional services in India has created a massive demand for high-quality video content. These platforms require advanced video codecs to deliver seamless streaming experiences across a range of devices while minimizing bandwidth consumption. With India’s growing middle class and increasing disposable income, OTT platforms are competing for market share, which further fuels the demand for efficient video coding technologies. The adoption of HEVC, AV1, and other advanced codecs will continue to rise as platforms seek to provide the best user experience.
• Shift Towards More Efficient Codecs (AV1 and HEVC): India is seeing a gradual but steady shift towards more efficient video codecs, especially AV1 and HEVC, as content providers and broadcasters seek to deliver better video quality while reducing data consumption. These codecs are particularly important for streaming services, which need to balance high-quality video delivery with cost-effective data usage. As 4K, 8K, and HDR content become more mainstream, India’s demand for these high-efficiency codecs will continue to grow, as they enable smoother delivery of high-definition content across diverse networks.
• Increasing Adoption of Cloud-Based Video Processing: With the growing demand for high-quality video streaming, the video coding market in India is also seeing a rise in cloud-based video processing solutions. Cloud platforms allow for more flexible, scalable, and cost-effective encoding and decoding of video content, making it easier for businesses and content providers to handle the increasing volume of video traffic. By utilizing cloud computing, content providers can easily scale their video delivery systems to meet the rising demand for on-demand and live streaming content, with minimal upfront investment.
The emerging trends in the advanced video coding market in India, including mobile video streaming, 5G expansion, OTT platform growth, the shift towards more efficient codecs, and cloud-based video processing, are reshaping the landscape of video content delivery. These trends reflect India’s digital transformation and the need for better compression and faster content delivery. As the market continues to evolve, video coding solutions that are scalable, cost-effective, and capable of delivering high-quality content will become increasingly vital for meeting the needs of consumers and businesses alike.
Recent Developments in the Advanced Video Coding Market in India
The advanced video coding market in India is experiencing significant growth, driven by the rapid adoption of mobile video streaming, OTT platforms, 5G networks, and evolving video standards. These developments are pushing the demand for better video compression techniques and more efficient video delivery systems. The Indian market is particularly focused on solutions that can handle the growing demand for high-definition content while ensuring minimal data usage. As more consumers and businesses turn to digital platforms for video consumption, video coding technologies will play a crucial role in maintaining a high-quality user experience.
• Rise of High-Quality Video Streaming Services: The rapid rise of high-quality video streaming services, particularly OTT platforms like Netflix, Hotstar, and Amazon Prime Video, has been a key development in the Indian market. These platforms require more advanced video codecs to stream content efficiently without compromising on quality. The shift towards 4K, HDR, and even 8K content has pushed the demand for codecs such as HEVC and AV1, which offer better compression and support high-quality video streaming at lower bitrates. As OTT services expand, the adoption of these advanced codecs will increase.
• Expanding 5G Coverage and Its Impact on Video Streaming: With 5G networks being rolled out in India, mobile video consumption is set to increase dramatically. 5G enables ultra-low latency and faster speeds, which will enhance the quality of video streaming and facilitate new services such as real-time video conferencing and augmented reality applications. To fully leverage the potential of 5G, video codecs must evolve to deliver high-quality video with minimal latency and bandwidth usage. The increased speed and capacity of 5G will drive demand for efficient and scalable video coding solutions.
• Government Initiatives and Support for Digital Infrastructure: The Indian government’s initiatives to improve digital infrastructure, including the Digital India campaign, are driving the growth of video streaming and video-based services. These initiatives focus on improving internet access, especially in rural areas, thereby increasing the reach of OTT platforms and mobile video services. As more users gain access to digital content, there will be a need for advanced video coding solutions that can accommodate large volumes of video traffic and deliver high-quality content efficiently across varying network conditions.
• Adoption of Cloud-Based Video Processing Solutions: Cloud-based video encoding and streaming solutions have gained traction in India, especially for businesses looking for cost-effective and scalable video delivery systems. Cloud platforms enable dynamic video transcoding, allowing content providers to handle increased demand without the need for heavy investments in hardware infrastructure. This flexibility is crucial for supporting the rapid growth of video streaming services, especially as demand for high-quality video increases. The shift towards the cloud is expected to continue, with more companies adopting these solutions for video delivery.
• Growing Need for Video Compression Standards: As the demand for higher-quality video increases, so does the need for efficient video compression standards. The use of HEVC and AV1 codecs is becoming more widespread as they offer substantial improvements in compression efficiency compared to older standards. These codecs allow for better quality video at lower bitrates, which is essential for streaming services to reduce data consumption while maintaining high video quality. The adoption of these standards is critical for ensuring smooth and seamless video streaming, particularly in regions with limited bandwidth.
Recent developments in the advanced video coding market in India, including the rise of OTT platforms, the expansion of 5G networks, government support for digital infrastructure, the adoption of cloud-based solutions, and the growing need for efficient video compression, are transforming the video content delivery landscape. These developments underscore the importance of advanced video coding technologies in delivering high-quality, cost-effective video streaming experiences to an increasingly digital population. The continued evolution of video coding standards and platforms will drive innovation and growth in the Indian market.
Strategic Growth Opportunities for Advanced Video Coding Market in India
India’s advanced video coding market presents significant growth opportunities driven by the increasing demand for mobile video content, the expansion of 5G networks, the rise of OTT platforms, and the push for more efficient video coding solutions. As the video content ecosystem continues to expand, businesses have a chance to capitalize on the need for scalable, high-quality, and efficient video encoding technologies. These opportunities span various industries, including entertainment, education, corporate communications, and more, providing ample room for innovation and growth.
• OTT Streaming Services: The booming OTT streaming market in India presents a major opportunity for video coding companies. With the surge in demand for on-demand and live-streaming content, OTT platforms need efficient video codecs to deliver high-quality video with minimal data consumption. The adoption of advanced video codecs like HEVC and AV1 will help providers reduce bandwidth costs while ensuring a superior viewing experience. Video coding companies can capitalize on this demand by offering tailored solutions to meet the specific needs of the OTT market in India.
• 5G Network Deployment: The expansion of 5G networks in India is a critical growth opportunity for advanced video coding solutions. With faster speeds and lower latency, 5G networks will support the delivery of high-quality video content, including 4K and 8K video, on mobile devices. Video codecs that support these high-definition formats and deliver low-latency experiences will be in high demand. Companies that provide optimized codecs for 5G networks can capture a significant share of the market as mobile video consumption continues to grow in India.
• Cloud Video Encoding and Streaming: Cloud-based video encoding and streaming solutions are gaining popularity in India, as they offer scalability, flexibility, and cost-efficiency for content providers. Businesses are increasingly shifting to cloud-based platforms for video delivery, allowing for dynamic transcoding and efficient video distribution. This trend presents an opportunity for companies that provide cloud-based video encoding services and solutions, particularly as demand for high-quality, on-demand video content continues to rise. Video coding companies that can integrate cloud solutions will be well-positioned to meet the growing needs of the market.
• Corporate Video Conferencing Solutions: With the rise of remote work and virtual meetings, the demand for corporate video conferencing solutions is increasing. Advanced video codecs are essential for ensuring high-quality video calls without excessive bandwidth usage. Businesses in India are looking for solutions that can deliver clear, seamless video communication, especially as the demand for remote work and online collaboration tools grows. Video coding companies can capitalize on this trend by offering high-efficiency codecs optimized for corporate video conferencing and collaboration platforms.
• Education and E-Learning: The education sector in India is increasingly adopting digital learning platforms, creating a significant opportunity for advanced video coding solutions. Video content is becoming central to e-learning, with interactive lessons, live classes, and educational videos gaining popularity. As the demand for high-quality video-based learning increases, educational platforms will require efficient video codecs that offer high-quality visuals at lower data rates. Video coding companies can target the growing e-learning market in India by offering solutions that improve the quality of video content while reducing data consumption.
The strategic growth opportunities in the advanced video coding market in India, spanning OTT services, 5G networks, cloud video encoding, corporate video conferencing, and e-learning, highlight the expanding need for efficient, scalable, and high-quality video coding solutions. As the demand for video content grows across multiple industries, businesses that can provide innovative video encoding solutions tailored to these applications will be well-positioned to capture market share and drive further growth in India’s evolving video coding landscape.
Advanced Video Coding Market in India Driver and Challenges
The advanced video coding market in India is shaped by a combination of technological, economic, and regulatory factors. As mobile video consumption grows, OTT platforms expand, and 5G networks are deployed, there is a significant push for more efficient video codecs. However, challenges such as infrastructure limitations, competition among codecs, and regulatory concerns must also be navigated. Understanding these drivers and challenges is crucial for businesses seeking to succeed in the Indian market, which is poised for rapid growth in the coming years.
The factors responsible for driving the advanced video coding market in India include:
• Surge in Mobile Video Consumption: Mobile video consumption is one of the primary drivers of the advanced video coding market in India. The proliferation of smartphones and affordable data plans has led to an increase in mobile video streaming. As consumers demand higher-quality content on mobile devices, there is a need for advanced video coding solutions like HEVC and AV1 to deliver high-definition video without compromising data usage. This trend is expected to continue, pushing the market for efficient video compression technologies in India.
• 5G Network Expansion: The deployment of 5G networks in India offers a significant opportunity for advanced video coding. 5G provides the necessary infrastructure for ultra-high-definition video streaming, including 4K and 8K content, over mobile networks. This increased bandwidth and reduced latency allow for better quality video with fewer data restrictions. Video codecs that support high-efficiency compression will be in high demand, making 5G expansion a key driver of the advanced video coding market.
• Growth of OTT Platforms: The increasing popularity of OTT platforms such as Netflix, Amazon Prime Video, and local streaming services in India is a major driver of the advanced video coding market. These platforms require efficient video codecs that can deliver high-quality content to users while managing bandwidth and data costs. The widespread adoption of OTT services across urban and rural India fuels the demand for video coding technologies that can support the delivery of high-definition video content across different devices and networks.
• Adoption of Cloud-Based Solutions: Cloud-based video encoding and streaming solutions are gaining traction in India. With the rapid increase in video traffic, cloud platforms offer a scalable, cost-effective way for businesses to manage video content delivery. Cloud-based solutions enable dynamic transcoding and real-time video processing, making them essential for meeting the growing demand for high-quality video streaming. The adoption of these platforms by OTT providers and content distributors is driving the demand for advanced video coding solutions in India.
• Government Initiatives to Enhance Digital Infrastructure: Government initiatives aimed at improving digital infrastructure in India, such as the Digital India campaign, are accelerating the growth of video consumption across the country. The push for improved internet access and digital services, particularly in rural areas, is expanding the reach of video platforms. As more people access digital content, there is increased demand for efficient video delivery, which in turn drives the need for advanced video codecs capable of handling high-quality video at lower bitrates.
Challenges in the advanced video coding market in India include:
• Infrastructure Limitations: Despite rapid improvements, infrastructure limitations remain a challenge for the advanced video coding market in India. While urban areas benefit from high-speed internet, rural regions often face connectivity issues, hindering the seamless delivery of high-definition video content. Video coding solutions need to be efficient enough to work across varying network conditions, but the uneven distribution of high-speed internet remains a barrier to widespread adoption of advanced video codecs.
• Competition Among Video Codecs: The competition between video codecs, particularly HEVC, AV1, and older formats like H.264, presents a challenge for businesses in India. Each codec has distinct advantages and limitations in terms of compression efficiency, quality, and hardware compatibility. The need for standardization in the industry can create confusion for content providers and slow down the adoption of new codecs, particularly as they navigate licensing issues and compatibility with existing systems.
• Regulatory and Licensing Challenges: Licensing and regulatory concerns related to video codecs are a significant challenge in India. Many of the advanced codecs, such as HEVC, are subject to licensing fees, which can make them cost-prohibitive for smaller content providers. The regulatory environment around the use of these technologies is complex and evolving, and companies may face legal hurdles when adopting new video coding standards, particularly if the regulatory framework is not clear or supportive.
The drivers and challenges impacting the advanced video coding market in India highlight the rapid growth potential of the sector, fueled by mobile video consumption, OTT platform expansion, 5G deployment, and government initiatives. However, challenges such as infrastructure limitations, codec competition, and regulatory concerns present barriers to full market adoption. By addressing these challenges while capitalizing on the drivers, businesses can navigate India’s dynamic video coding market and secure their place in an increasingly digital world.
List of Advanced Video Coding Market in India Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, advanced video coding companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the advanced video coding companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Advanced Video Coding Market in India by Segment
The study includes a forecast for the advanced video coding market in India by type and application.
Advanced Video Coding Market in India by Type [Analysis by Value from 2019 to 2031]:
• H.264/MPEG-4 AVC
• H.265/HEVC
• VP9
• AV1
• Others
Advanced Video Coding Market in India by Application [Analysis by Value from 2019 to 2031]:
• Video Streaming
• Broadcasting
• Video Conferencing
• Surveillance
• Others
Features of the Advanced Video Coding Market in India
Market Size Estimates: Advanced video coding in India market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Advanced video coding in India market size by type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different type and application for the advanced video coding in India.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the advanced video coding in India.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q.1 What are the major drivers influencing the growth of the advanced video coding market?
Answer: The major drivers for this market are significant demand for high-quality video content, rising popularity of online video streaming, and expanding 4K and 8K video markets.
Q2. What are the major segments for advanced video coding market in India?
Answer: The future of the advanced video coding market in India looks promising with opportunities in the video streaming, broadcasting, video conferencing, and surveillance applications.
Q3. Which advanced video coding market segment in India will be the largest in future?
Answer: Lucintel forecasts that H.264/MPEG-4 AVC is expected to witness the highest growth over the forecast period as it offers a good balance of compression efficiency and video quality computer systems.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the advanced video coding market in India by type (H.264/MPEG-4 AVC, H.265/HEVC, VP9, AV1, and others), and application (video streaming, broadcasting, video conferencing, surveillance, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?