Next Generation Video Codec in Germany Trends and Forecast
The future of the next generation video codec market in Germany 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 Germany 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 Germany
Germany’s next generation video codec market is being disrupted by the high demand for quality video content, the expansion of 5G services, and advancements in cloud-enabled technologies. Video codecs like AV1, HEVC, and VVC are leading the next generation of video streaming services with high compression and increased video quality. As the world becomes more digitized, Germany is positioning itself as an early adopter and developer of next generation video technology, which will satisfy both domestic and industrial needs for cost-effective video development and distribution.
• Adoption of AV1 for Streaming Services: AV1, an open-source codec, is becoming commonplace in Germany’s video streaming services for OTT platforms due to its higher compression efficiency and better quality at lower bit rates. Video streaming platforms such as YouTube, Netflix, and other OTT services are already using AV1. This is especially significant for Germany, where the video streaming market is large, as AV1 makes streaming 4K and 8K videos possible without oversaturating network bandwidth. This enables Germany’s extensive user base to easily access high-resolution videos. Additionally, since AV1 is an unrestricted codec, it does not present the licensing or regulatory challenges that proprietary codecs do, making it easier to use across borders.
• 5G-Enabled Video Streaming: The spread of 5G networks within Germany is having a significant impact on the next generation video codec market. Thanks to 5G’s ultra-low latency and high-speed data transmission, video streaming services can use advanced codecs like VVC to deliver high-quality, real-time video streaming. As 5G adoption grows, Germany’s content delivery framework is evolving to accommodate live streaming, augmented reality (AR), and virtual reality (VR) services. This transition is allowing businesses to confidently provide immersive experiences as the challenges of bandwidth and latency are overcome with next-gen video codecs.
• Cloud Video Processing and Distribution: Cloud video processing is becoming a primary focus for German media houses, OTT platforms, and content creators. Next-generation video codecs like HEVC and AV1 are being integrated into cloud solutions to enhance video encoding, transcoding, and delivery processes. These codecs enable the delivery of high-quality video while minimizing on-premise infrastructure costs. For Germany’s growing media and entertainment industries, cloud-based video solutions provide scalability and flexibility for faster content delivery while minimizing operational overhead, thereby promoting the adoption of next-gen codecs.
• Solutions with Video Conferencing Capabilities: Germany is experiencing newfound business efficiency due to increased demand for video conferencing solutions. The importance of seamless codecs like AV1 and HEVC has risen as they guarantee smooth video calls even over low-bandwidth connections. After the pandemic, Germans have become more accustomed to video collaboration workflows, further driving the use of next-gen video codecs to improve the user experience. This shift has been especially beneficial in delivering education to remote areas and supporting low-speed networks.
• Video Compression for Ultra High-Eight K Content: Content in Germany is increasingly centered around 8K, which has sparked growing interest in more efficient codecs like VVC to compress ultra-high-definition content. With the rise of ultra-resolutions in video, next-level VVC codecs are becoming essential in the media industry. Their usage ensures high-quality 8K streaming without consuming excessive bandwidth. This is especially important for virtual German users, as 5G coverage expands and they will need these codecs to produce 8K ultra-high-definition content. These codecs will allow broadcasters and streaming platforms to deliver superior visuals without incurring high head-end and transmission costs.
The trends shaping Germany’s next generation video codec market are driven by new technology, 5G adoption, and the demand for high-quality video content. The country’s progress in AV1 integration within cloud-based streaming services, video conferencing powered by 5G, and the strong emphasis on video quality and bandwidth optimization highlight Germany’s international focus. Furthermore, Germany’s push toward achieving 8K video content underscores unresolved challenges surrounding video codecs. Many of these developments are positioning Germany as a prominent center for video technology and supporting the adoption of advanced technologies such as next generation video codecs.
Recent Developments in the Next Generation Video Codec Market in Germany
Germany’s next generation video codec market has seen numerous significant developments in recent years. Germany is standing out in the competition by adopting new technologies such as AV1 and VVC for video streaming and breakthroughs in 5G network development to enable higher-quality video delivery. The continuous rise of new cloud-based solutions, video conferences, and the shift toward creating and consuming 8K content is transforming the landscape of standard video content production and distribution. These developments show that the country is committed to establishing itself as a leader in video technology innovations.
• AV1 and VVC Video Codecs Adoption for Streaming Services Expansion in Germany: AV1 and VVC are the codecs of choice for streaming services in Germany. Now, platforms like Netflix, YouTube, and other OTT services use these next generation codecs to optimize content delivery and improve user experience with reduced data utilization. Since German viewers are heavy consumers of high-definition content, these platforms can stream 4K and even 8K videos with lower bitrates, which is ideal for Germany’s content-hungry audience. Transitioning from AVC and HEVC also resolves significant issues with copyright and licensing, making service providers’ jobs easier.
• 5G Networks Deployment Improving Video Streaming Quality: Germany has been enhancing the sophistication of video streaming services through the continued development of 5G networks across the country. Qualified VVC and AV1 codecs offer ultra-low latency and high-speed data transmission. This is valuable for live streaming, VR, and AR applications. As 5G infrastructure expands in Germany, next generation video codecs will be fully utilized to provide seamless video experiences.
• The Shift Towards Cloud Storage for Video Content Is Gaining Momentum: Germany has witnessed significant progress in cloud-based video processing and transcoding solutions. Media companies, OTT platforms, and other content creators are adopting cloud services to better manage their video assets. New-age video codecs such as HEVC and AV1 are now integrated into cloud infrastructure, enabling a cost- and resource-efficient approach for transcoding and distributing high-quality video. The adoption of the cloud is helping German companies optimize business processes, reduce capital expenditures on infrastructure, and speed up time to market, making next generation video codecs an integral part of video services in the future.
• Improvements in Video Communication and Virtual Employment: Video communication and remote collaboration have been key drivers for the growth of codecs in Germany, particularly following the increased need for remote working and learning during the COVID-19 pandemic. German businesses, along with educational institutions, are adopting newer video codecs such as AV1 and HEVC to boost video call quality and ensure smooth communication. The need for high-quality video transcoding, even in challenging bandwidth conditions, has greatly improved the remote working experience and enhanced communication across various regions.
• Progress on 8K Video Content Delivery: Germany’s strides in 8K video production and broadcasting are driving the demand for more advanced and efficient video compression technologies. To facilitate 8K video delivery, new codecs like VVC are being used to make high-volume data storage more feasible without compromising quality. These efforts are allowing broadcasters and streaming platforms to provide top-level video content with manageable bandwidth and operational costs. The growing production of 8K video in Germany positions these video codecs at the center of the country’s high-definition video future.
The emergence of AV1 and VVC codecs, known as the Next Generation Video Codecs, is improving Germany’s strategic markets as new-generation video materials promise higher quality due to these codecs. The expansion of 5G networks is enabling real-time, rich video experiences coupled with cloud-based video file management and transcoding. Improvements in video conferencing technology and the rise of 8K videos signal Germany’s intent to lead the modern world in innovative video technologies. Their position in the video codec market is solid, and these developments will ensure high stakes in the global video codec market.
Strategic Growth Opportunities for Next Generation Video Codec Market in Germany
In Germany, the emergence of AV1, HEVC, and VVC codecs is enabling easy data monetization through gaming and streaming. The rise in demand for ultra-quality videos and technological advancements are also significant factors. Germany stands at the forefront of innovation, and the use of new codecs can provide even better consumer satisfaction. With advanced digital infrastructure, German companies can innovate faster than other nations in Europe. As next generation codecs help resolve data constraints, Germany stands to benefit greatly from increased data usage in key industries.
• Video Streaming Services: The emergence of ultra-high-definition video codecs in streaming services like YouTube and Netflix has shifted consumer expectations. In Germany, ultra-high-definition videos are in constant demand, and next generation video codecs are making this possible. As more German consumers expect seamless streaming, competition intensifies. With low data consumption and seamless streaming, AV1, HEVC, and VVC technologies help streaming service providers satisfy their clients.
• Expansion of 5G Network: The expansion of the 5G network in Germany is a major factor contributing to the increased use of next generation video codecs. 5G’s high speed and ultra-low latency make it possible to deliver high-quality video content in real time. Video on-demand, live sports, gaming, and new technologies such as augmented reality (AR) and virtual reality (VR) will benefit from the power of VVC and AV1. The rollout of 5G will allow video service providers across Germany to offer ultra-high-definition content without any drop in video quality, regardless of the user’s location.
• Video Conference and Remote Work Solutions: The increased demand for advanced video conferencing in Germany, especially during the COVID-19 pandemic, has boosted remote work and digital collaboration. Next-generation video codecs like AV1 and HEVC are essential for power users needing clear video calls while keeping bandwidth usage to a minimum. This is particularly important for businesses, educational institutions, and healthcare organizations that require clear communication and video quality. The use of AV1 and HEVC will help German businesses improve remote work, enhance productivity, and create large-bandwidth video communication environments, thereby boosting the video conferencing market.
• eSports and Gaming Industry: Next-generation video codecs are opening new prospects in Germany’s esports and gaming sector. Gamers and content creators need streams with less buffering and low latency. Advanced AV1 and VVC codecs allow gaming platforms to broadcast low-latency, high-definition video while minimizing data traffic. This enables game developers and streamers to offer their audience a competitive edge in lag-free experiences. The eSports industry in Germany is on the rise, and it is clear that investment in new video codecs will benefit both the viewing experience and the industry’s growth.
• Cloud-Based Video Solutions: The shift towards using cloud technology for video encoding and streaming is increasing the demand for next-gen video codecs in Germany. These cloud-based platforms are flexible and cost-efficient when it comes to video delivery, and employing modern codecs provides sophisticated mediums for high-end video distribution. Media, entertainment, and education businesses are adopting cloud-based video transcoding and distribution at an accelerated pace. By utilizing AV1, HEVC, VVC, and other modern codecs in the cloud, companies can reduce operating expenses, improve video quality, and better manage bulk video services.
The opportunities for expansion in Germany’s next generation video codec market are significant. The range of important applications across video streaming services, 5G networks, video conferencing, gaming, and cloud video solutions all have robust potential. Advances in video content compression and streaming technology are transforming content delivery methods, enabling businesses to serve higher-quality video content while optimizing bandwidth consumption. Next-generation video codecs are expected to significantly shape the future of digital content in Germany, broadening the scope for creativity and innovation while enhancing overall user satisfaction. As video codecs advance and improve, they will facilitate better user experiences.
Next Generation Video Codec Market in Germany Driver and Challenges
Technological progress, economic growth, and regulatory factors shape the competitive landscape of the next generation video codec market in Germany. These factors influence the adoption of new video codecs, which offer improved compression, enhanced quality, and seamless content enablement. However, market players face challenges due to the high costs of adoption, lack of technological compatibility, and an ever-changing regulatory environment. Gaining insight into the key issues and important factors affecting the German market will ease the struggle for those wishing to compete in Germany’s digital media market.
The factors responsible for driving the next generation video codec market in Germany include:
• Improvements in Technology for Video Compression: New video codecs such as AV1, HEVC, and VVC are being adopted in Germany due to improvements in video compression technology. These codecs have higher efficiency ratios, which are crucial for high-quality content creation. In light of the demand for 4K and 8K video, these improvements allow platforms to deliver HD content without straining their bandwidth infrastructure. In Germany, the continuing adoption of these codecs across various industries, such as entertainment, telecommunications, and education, will sustain market expansion as video quality and cost efficiency increase.
• Growth of 5G Networks: In Germany, the rapid growth of 5G networks acts as a significant booster for the next generation video codec market. 5G offers extremely high speeds and low latency, making it perfect for all types of video streaming, including real-time delivery such as live sports and gaming, or even VR. AV1 and VVC are examples of modern video codecs optimized for 5G, enabling effortless HD video streaming without compromising quality or experience. With the expansion of 5G networks, the supply of such advanced codecs is expected to increase, improving video delivery standards in the country.
• Increasing Demand for Quality Video Content: German consumers continue to demand more high-quality videos, which is driving the market to adopt more efficient codecs. The growing expectation for 4K, 8K, and wide-angled videos makes it essential to have codecs that compress high-resolution videos without sacrificing quality. A new generation of codecs like AV1 and VVC can stream these videos under varying network conditions. This overall shift toward quality content in entertainment, gaming, and broadcasting is accelerating video codec development in Germany.
• Video Processing Solutions Hosted on the Cloud: The increasing adoption of cloud-hosted video processing solutions in Germany is fueling the demand for new video codecs. Cloud services offer an economically viable approach to video storage and content delivery, making them attractive to businesses that need to disseminate large amounts of content. Content providers adopting AV1 and HEVC can cut costs on data usage while still producing high-quality videos. This is crucial for OTT platforms, media companies, and academic institutions that rely on the cloud for efficient video encoding, transcoding, and delivery. The rise of cloud services is expected to accelerate the adoption of next-gen codecs in Germany.
Challenges in the next generation video codec market in Germany are:
• Regulatory Compliance and Licensing Requirements: Germany’s next generation video codec market is influenced by regulatory issues related to licensing proprietary technologies. Content providers, especially smaller ones, tend to avoid adopting proprietary codecs like HEVC because they come with complicated licensing agreements and high costs. In contrast, AV1 open-source codecs are much cheaper and offer more flexibility. As digital media regulations in Germany evolve, many companies are seeking video codecs that meet new requirements while reducing expenses. This shift in legislation is increasing the use of open-source video codecs and stimulating the next generation video codecs industry.
The analysis highlights the drivers and barriers shaping the existing and potential digital media landscape in Germany. Drivers include changing regulatory parameters, the growing use of cloud-based video services, increasing investments in 5G network infrastructure, advancements in compression efficiency, and high demand for quality video content, all of which support the growth of the next generation video codec market in Germany. On the other hand, the German digital media landscape faces challenges, including reluctance due to licensing complexities, compatibility issues, and emerging technologies that are yet to gain traction. These factors will determine the speed and scope of codec transformation within the German market and influence the strategies that technology and media firms employ to overcome these hurdles.
List of Next Generation Video Codec Market in Germany 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 Germany by Segment
The study includes a forecast for the next generation video codec market in Germany by video codecs type and application.
Next Generation Video Codec Market in Germany by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in Germany by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in Germany
Market Size Estimates: Next generation video codec in Germany 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 Germany 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 Germany.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in Germany.
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 Germany?
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 Germany?
Answer: The future of the next generation video codec market in Germany looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in Germany 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 Germany 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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