Next Generation Video Codec in Brazil Trends and Forecast
The future of the next generation video codec market in Brazil looks promising with opportunities in the mobile phone, computer, and TV markets. The global next generation video codec market is expected to reach an estimated $7.9 billion by 2031 with a CAGR of 22.1% from 2025 to 2031. The next generation video codec market in Brazil is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the growing demand for better video experience, increasing mobile video consumption, and the proliferation of video content across platforms.
• Lucintel forecasts that, within the video codecs type category, the HEVC segment will remain the largest segment over the forecast period due to cutting the necessary bitrate in half while maintaining similar image quality, but at the cost of more processing complexity.
• Within the application category, mobile phone is expected to witness the highest growth.
Emerging Trends in the Next Generation Video Codec Market in Brazil
The market for next generation video codecs in Brazil has been expanding as the need for quality video streaming and communication increases. Brazil can make strides towards acquiring emerging technologies because improvements in infrastructure and compression technologies can enhance video transmission and quality. These changes are necessary with the growing demand for mainstream high-definition content, presenting great opportunities for further expansion in the media, entertainment, telecommunication, and corporate communication industries.
• Increased Use of Streaming Services: Brazil has seen large-scale digital consumption through streaming services, which has been a catalyst for the adoption of next generation video codecs. Services like Netflix and Amazon Prime, along with local Brazilian platforms, have created a demand for better codecs to support 4K and 8K video consumption. AV1 and HEVC are next generation codecs that provide better compression ratios along with high-quality video delivery, even in rural areas of Brazil where bandwidth infrastructure is limited. With these advancements, access to high-quality video and improved streaming services will reach a wider audience.
• Integration with 5G Networks: The adoption of 5G networks in Brazil is shifting the utilization of video codecs in the country. 5G provides ultra-fast data transmission, enabling more efficient streaming and real-time video activities. The integration of 5G-optimized video codecs like VVC allows content providers to deliver high-quality video with lower latency. This is especially useful for live streaming, video conferencing, and gaming, which require real-time interactions. As 5G networks continue to expand across Brazil, the importance of next-gen video codecs for seamless advertising and content delivery will grow significantly.
• Demand for Video Conferencing Solutions: The shift to remote work and the increase in online meetings in Brazil has raised the demand for enhanced video conferencing solutions. Newer video codecs like HEVC and AV1 improve the quality and bandwidth efficiency of video calls, making them especially user-friendly for remote teams and businesses. These codecs provide clearer video and reduce buffering, ensuring smooth engagement. The rise of hybrid and remote work in Brazil will drive the demand for advanced video conferencing solutions, further increasing the market value and adoption of next generation video codecs.
• Expansion of eSports and the Gaming Sector: Brazil has one of the largest gaming audiences in Latin America, with a rapidly growing online gaming and eSports industry. Next-generation video codecs play an essential role in facilitating high-quality video streaming for live gaming events and tournaments. Gamers require rapid and smooth video streaming, and these codecs enhance clarity while decreasing latency, which is crucial during tournaments. As eSports and live-streamed content continue to grow, the demand for more effective video codecs will increase, boosting the market for advanced video technologies in Brazil.
• Video Processing in the Cloud: The growing use of cloud computing in Brazil is driving the need for cloud-based video processing solutions. These solutions leverage next generation video codecs for cloud services and content delivery. Scalable and cost-effective encoding, transcoding, and delivery can be done seamlessly from the cloud without the need for significant on-site hardware infrastructure. Cloud services with AV1 codecs enable high-quality video streaming at low operational costs. This change helps content providers, OTT platforms, and other media companies expand their audience without the complexity of video processing procedures or increased workloads.
The rise in the popularity of streaming services, the integration of 5G technologies, the development of video conferencing, the growth of online gaming and eSports, as well as cloud-based video rendering, are transforming the next generation video codec market in Brazil. These shifts highlight the growing need for efficient communication and video delivery systems across different industries. The emergence of these ecosystems in Brazil will inevitably increase the demand for high-definition, low-latency video services, making the adoption of next generation video codecs crucial.
Recent Developments in the Next Generation Video Codec Market in Brazil
The advances in technology and the evolving industry needs have facilitated the development of Brazil’s next generation video codec market. At the same time, the growing availability of infrastructure and the increasing demand for sophisticated video content are creating new business opportunities in the media, entertainment, telecommunications, and other sectors. These solutions are not only improving video quality but also enhancing the effectiveness of video distribution while reducing costs. Future developments will position Brazil to meet the demands of digital and video-centric consumers by adopting next-gen video codecs.
• Adoption of Next Generation Video Codecs AV1: The adoption of AV1 and HEVC by streaming services in Brazil is accelerating to meet the rising demand for high-definition video. The AV1 and HEVC codecs offer world-class compression efficiency, enabling service providers to overcome current network limitations when delivering 4K or 8K videos. This efficiency also addresses the increasing number of digital streaming consumers. This change is crucial for both international and local streaming providers in Brazil looking to improve their services. However, increasing reliance on these codecs raises other questions regarding future technological shifts.
• End-User Video Consumption: The adoption of video codecs optimized for 5G, such as AV1 and VVC, makes the use of next generation video codecs more desirable in Brazil. Brazil’s ongoing 5G infrastructure deployment emphasizes the need for next-gen video codecs. 5G serves as the backbone for fast and reliable video streaming on mobile devices. The combination of 5G with AV1 enables quick streaming of high-quality videos without high latency. These changes will create new opportunities for mobile video, live streaming, and virtual events throughout the country, especially in densely populated urban and suburban areas that benefit from 5G networks.
• Higher Adoption of Video Conferencing Tools: Brazil has been slow to adopt remote work and virtual meetings, but next-gen video codecs are changing the landscape. Advanced codecs like AV1 and HEVC make it possible to have smoother, higher-quality video calls at lower bandwidths, even in areas with restricted internet speeds. The increasing use of communication tools in business and education is driving high demand for these efficient video codecs. This trend is significant for Brazil as it prepares to employ more digital-first collaborative models in both professional and personal spheres.
• Surge in Gaming and Live Streaming Activities: eSports gamers and streamers in Brazil are driving the need for advanced, low-latency, high-quality streaming solutions. Streamed events and tournaments can no longer afford poor video quality and need advanced codecs to maintain high-definition video during gameplay. Brazil, as a major player in gaming in Latin America, is expected to increasingly use next-gen video codecs to capture the attention of audiences and gamers alike.
• Cloud Computing and Video Processing Solutions: The adoption of cloud-based video processing by many Brazilian companies is increasing the need for higher-generation video codecs. Cloud services allow for economical scaling of encoding, transcoding, and video delivery. This enables high-quality content delivery with minimal physical infrastructure expenses. New-generation codecs like AV1 lower operational costs through compression and efficient video delivery. Cloud video processing is especially advantageous for OTT platforms, content creators, and media companies in Brazil, improving workflow efficiency and content distribution.
The recent shifts in the next generation video codec market in Brazil demonstrate the technological adoption tendencies of businesses across different video technologies. Video marketing through streaming services integrated with 5G networks, conducting video conferences, and processing videos via cloud networks are all steps toward more cost-effective and high-quality video rendering systems. These shifts are designed to meet the ever-increasing demand for high-definition content while managing bandwidth and costs efficiently. As Brazil embraces these innovations, it will become evident that next generation video codecs will be essential to the country’s digital and entertainment industries.
Strategic Growth Opportunities for Next Generation Video Codec Market in Brazil
The Brazilian market for next generation video codecs is expanding due to the increasing demand for high-quality video content, improvements in network infrastructure, and the growing acceptance of streaming services. Companies are looking to exploit next generation codecs such as AV1, HEVC, and VVC to improve user satisfaction while streamlining content delivery. Such advancements are creating new prospects for growth in Brazil, which has been experiencing an increase in video streaming, gaming, and video conferencing.
• Video Streaming Services: Next generation video streaming service codecs such as AV1, HEVC, and VVC continue to emerge as major growth opportunities due to the increasing demand for high-definition and ultra-high-definition video. Brazilian services, alongside Netflix and YouTube, are adopting AV1 and VVC HDR delivery to enhance video quality and stay at the forefront of competition. These codecs offer much higher compression ratios, enabling the use of 4K and 8K videos without exceeding bandwidth quotas. The adoption of these codecs improves the quality of streaming services for both urban and rural users, who often have limited internet speeds.
• Growth of 5G Networks: The adoption of newer video codecs is being heavily driven by the expansion of 5G networks in Brazil. 5G has ultra-fast connection speeds and low latency, making it ideal for video streaming and other immersive applications. With the exponential growth of 5G networks, popular content service providers will be able to use VVC and AV1 codecs to enhance users’ video streaming experience. This will be crucial for live streaming, remote gaming, augmented and virtual reality, and will improve the overall quality of video content across the nation.
• Video Conferencing Software: There is increasing demand for more advanced video conferencing software solutions as remote work and collaborative digital work become more prevalent in Brazil. Next-gen codecs like AV1 and HEVC are especially useful for video calls because they effectively solve the bandwidth issue. The implementation of these codecs guarantees that businesses can have clear video calls even in areas with poor internet connections. This is particularly important for the education, healthcare, and corporate communication sectors where smooth video interaction is essential for collaboration and service delivery.
• eSports and Live Streaming: Next-gen video codecs are needed by the gaming and eSports community in Brazil to provide better video streaming quality. Brazil’s eSports and gaming community automatically creates a demand for top-quality video streaming. It is crucial for engagement and experience to stream eSports and gaming sessions in ultra-low latency 4K or 8K resolution. For viewers and content creators, codecs that maximize compression and reduce buffering are critical. Capable platforms and content creators gain an edge over the competition as eSports grows in Brazil, because these codecs enable hyper-resolution content and instant uploads.
• Cloud-Based Video Solutions: The move to the cloud for video processing and video coding presents further opportunities for next-gen video codecs in Brazil. The cloud is being embraced for encoding, transcoding, and even delivering video content to increase the efficiency and scalability of many companies. Operational costs can be lowered while video quality can be improved with advanced codecs like AV1 and HEVC in cloud services. Media companies, online educators, and OTT platforms stand to gain much from the increased flexibility in video content distribution.
The possibilities for the next generation video codec market expansion in Brazil are immense. The sectors for streaming services, 5G, video conferencing, eSports, and even cloud solutions offer next-gen codecs unmatched promise and enhancement for the delivery of high-quality video content. Moreover, these technologies will continue transforming Brazil’s video content ecosystem as they accelerate video quality, reduce latency, and enhance compression efficiency. As these opportunities manifest, the adoption of advanced video codecs will accelerate, consequently determining the future of digital media in Brazil.
Next Generation Video Codec Market in Brazil Driver and Challenges
The next generation video codec market in Brazil is affected by a multitude of drivers and challenges, including technological development, economic conditions, and regulations. These factors drive all aspects of the video codec market, including its growth potential and the increasing demand for high-quality video content. It is vital to understand these factors, particularly for businesses interested in expanding into Brazil’s growing digital and video market.
The factors responsible for driving the next generation video codec market in Brazil include:
• Advancing Technology: Several next generation video codecs, such as AV1, HEVC, and VVC, are highly sophisticated technologies that enhance Brazil’s video codec market. These newest formats improve upon older technologies in terms of video compression efficiency, resolution support, and overall performance. Content providers can utilize these innovations to deliver videos more efficiently while preserving high quality. The improvement in codec technologies will further encourage the adoption of these solutions, increasing user experience, optimizing content delivery, and becoming essential for high-definition and 4K content.
• Growth of 5G Services: The growth and expansion of 5G networks are boosting the demand for ultra-next generation video codecs that support extremely fast data speeds and low-latency video delivery in Brazil. 5G enables real-time applications such as video streaming, remote gaming, and even virtual reality. AV1 and VVC are examples of 5G-optimized video codecs that are crucial in today’s ultra-connected world, where high-quality video and low latency are essential. As 5G coverage increases throughout Brazil, these codecs will determine the quality of video services that providers can offer, enabling users to easily switch from 4G to 5G video services.
• The Need for High-Quality Video Content: Video businesses in Brazil are adopting more advanced video codecs due to the growing demand for 4K and 8K videos. Streaming services, broadcasters, and content providers strive to deliver high-definition videos, so high-quality next-gen video codecs are essential. The need for better compression methods like AV1, HEVC, and VVC to manage high volumes of high-resolution videos is clear. This powerful demand for quality videos will expand to gaming, entertainment, and even education.
Challenges in the next generation video codec market in Brazil are:
• Regulatory Challenges and Licensing Restrictions: Issues related to regulations, licensing, and proprietary codecs like HEVC may hinder the adoption of next-gen video codecs in Brazil. Proprietary video codecs such as HEVC are likely to have licensing restrictions, which work against widespread use, especially by newer players like OTT and smaller content producers. To overcome these challenges, business content providers may circumvent licensing costs by adopting open-source codecs like AV1, while also mitigating regulatory burdens in Brazil.
• Video Processing from the Cloud: The increasing use of cloud computing for video encoding and transcoding in Brazil is driving the demand for high-level next generation video codecs. Cloud-based systems allow businesses in Brazil to scale their resources without incurring excessive costs, which is crucial for companies that need to deliver large amounts of video content. Next-generation video codecs address the unique challenges associated with video processing in the cloud by minimizing costs and maximizing quality. As more businesses in media, education, and OTT services migrate to the cloud, implementing advanced video codecs will be pivotal for seamless video distribution.
• Fragmentation of the Market: Brazil’s video codec market is fragmented due to the presence of many competing technologies with different features, making it difficult to establish clear competitive boundaries. This fragmentation can pose challenges for businesses trying to choose the best codec suited for their needs, particularly in terms of interoperability, scalability, and costs. The lack of standardization within the codec market could lead to inefficiencies and increased complexity for content providers. Efforts toward developing industry-standard codecs that work across different platforms and use cases would significantly reduce decision-making complexities for companies in Brazil.
Although there are advantages to using next generation video codecs, their widespread adoption in Brazil is hindered by technological barriers. Many older devices and systems will struggle to support newer codecs, limiting their widespread use.
List of Next Generation Video Codec Market in Brazil 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, next generation video codec companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the next generation video codec 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
Next Generation Video Codec Market in Brazil by Segment
The study includes a forecast for the next generation video codec market in Brazil by video codecs type and application.
Next Generation Video Codec Market in Brazil by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in Brazil by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in Brazil
Market Size Estimates: Next generation video codec in Brazil market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Next generation video codec in Brazil market size by video codecs type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different video codecs type and application for the next generation video codec in Brazil.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in Brazil.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the next generation video codec market in Brazil?
Answer: The major drivers for this market are growing demand for better video experience, increasing mobile video consumption, and proliferation of video content across platforms.
Q2. What are the major segments for next generation video codec market in Brazil?
Answer: The future of the next generation video codec market in Brazil looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in Brazil will be the largest in future?
Answer: Lucintel forecasts that HEVC segment will remain the largest segment over the forecast period due to cuts the necessary bitrate in half while maintaining similar image quality, but at the cost of more processing complexity.
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 next generation video codec market in Brazil by video codecs type (AVC, AV1, HEVC, VP9, and VVC), and application (mobile phone, computer, TV, 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?
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