Next Generation Video Codec in South Korea Trends and Forecast
The future of the next generation video codec market in South Korea 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 South Korea 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 South Korea
South Korea is known for effectively adopting new-age technologies, which has enabled the country to install infrastructure for next generation video codecs that are continuously evolving. The extraordinary growth of South Korea’s telecommunications industry means that new developments in video compression technology are welcomed with open arms. The demand for high-quality video content and the country’s goals of providing 5G and 8K video codec experiences have cemented the importance of video codecs in the entertainment, telecom, and broadcasting industries. The following are the important changing elements of this market in South Korea.
• Video Streaming High Resolution (4K/8K): Fashioning action codes are part of the trends that have permeated South Korea’s entertainment industry. This serves ultra-high-definition TV content with petabytes of UHD videos. Gaining customers’ and providers’ attention can be easily achieved through HEVC and AV1 advanced codecs. These codecs enable the use of low bandwidth to overcome the problem of overconsumption. The increasing demand will pave the way for both OTT and standard TV or cable broadcasting providers.
• 5G-Enabled Low Latency Video Streaming: The introduction of the 5G network in South Korea has significantly improved live and mobile video streaming. The high speed and low latency that 5G provides make it a perfect fit for advanced video codecs that deliver real-time video streaming. This has accelerated the use of low-latency codecs, which allow for the use of augmented reality and virtual reality. The combination of 5G internet with advanced codecs is changing the way videos are consumed in the country.
• Live Sports and Esports Streaming: South Korea is a hotspot for live sports and esports streaming. Due to the rising popularity of live video streaming, especially for major esports competitions, there is a high demand for video codecs that fulfill this need. The demand includes live sports and esports codecs that work within tight bandwidth constraints. Next-generation video codecs enable live esports and sports coverage in true HD without lag. This phenomenon is creating new markets for live streaming and video broadcasting.
• Online Learning and Telehealth: South Korea accelerated the adoption of telehealth services and online education systems during the COVID-19 pandemic. A reliable video conferencing system is a prerequisite for both sectors, and this depends on the efficiency of video codecs. High-level telecommunication and remote medical consultations require codecs that transmit video at low latency and low data usage. This has paved the way for the development and adoption of video codecs for telehealth, e-learning, and other remote video services.
• AI and Machine Learning Integration in Video Codecs: Artificial intelligence (AI) and machine learning (ML) are becoming essential features of next generation video codecs in South Korea. These tools open up possibilities for adaptive video encoding, where video quality is adjusted and optimized based on the user’s device, network connectivity, and viewing location. Video codecs can utilize AI and ML to respond to users’ preferences, thereby optimizing efficiency by reducing buffering and increasing data bandwidth. The application of these codecs across various industries is leading to advanced video delivery systems.
The next generation video codec market in South Korea is evolving in line with the country’s technological development and consumer demand. Important strategic shifts like high-resolution streaming, 5G low-latency video, live sports and esports streaming, telehealth and remote learning, and AI/ML augmentation are changing how videos are produced and consumed. These ongoing and emerging trends are progressively expanding the possibilities for video compression technology and innovation within the South Korean market.
Recent Developments in the Next Generation Video Codec Market in South Korea
South Korea is committed to leading the delivery of digital content, which has significantly contributed to the development of the next generation video codec market. Technological innovations, along with the country’s relentless appetite for high-quality video content, have driven the advancement of codec solutions. These changes are designed to meet the increasing demand for streaming high-definition content, engaging in live broadcasts, and communicating efficiently in real time. Let’s look at some recent developments in the video codec space in South Korea.
• Launch of 8K UHD Broadcasting Service Across South Korea: The Vice President of Samsung Electronics recently stated that South Korea was the first country to launch the 8K UHD broadcasting service. It was further advanced by utilizing HEVC and VVC video codecs. The most groundbreaking achievement is that broadcasters can stream 8K content to the audience with lower bandwidth compared to traditional standards. As a result, continued success in South Korea has led to increased investment in next generation codecs. Users can now experience 8K content, which has subsequently increased the demand for better bandwidth opportunities.
• Development of 5G Networks and Video Streaming Services: The expansion of 5G networks allows South Korea and other countries to access live video streaming optimized for the new 5G features. Video codecs like AV1 and HEVC make streaming easier and faster with minimal delay. The shift to 5G in South Korea has boosted the development of other video streaming applications, such as live broadcasts, virtual reality, and augmented reality, all of which heavily depend on newer codecs for delivering high-quality content.
• Adoption of AV1 for OTT Platforms in South Korea: The AV1 codec is being adopted by OTT platforms like Naver TV and KakaoTV in South Korea because it is more efficient at compressing data than the HEVC codec. This has enabled the platforms to offer better video quality at lower bandwidths. AV1 is rapidly becoming the preferred codec for delivering 4K and 8K content as it meets the bandwidth requirements. In South Korea, the adoption of AV1 is helping OTT platforms remain competitive in the ever-expanding streaming market.
• Focus on AI-Powered Video Compression: AI-driven video compression has gained momentum in South Korea. Companies are using machine learning to dynamically encode video based on the user’s network, device, and other specifications and preferences. AI helps optimize the customer experience by providing smooth video streaming and minimizing buffering. In a broader sense, this development marks a significant advancement in multi-platform video codec efficiency optimization and effective content delivery.
The next generation video codec market in South Korea has transformed rapidly and is equipped with advanced broadcasting tools, along with AV1-powered OTT platforms driven by AI and 5G networks. These advancements have reshaped the South Korean video market, enabling superior content delivery to consumers. The rapid changes South Korea is embracing will reinforce its position as a global leader in the video codec market, fostering true innovation in video interactions.
Strategic Growth Opportunities for Next Generation Video Codec Market in South Korea
Because of its technological infrastructure and the demand for high-quality video, South Korea has emerged as a leader in the nation’s digital video technology. The penetration of sophisticated mobile networks and video streaming platforms within the country is presenting an array of growth opportunities in the next generation video codec market. There has been a prominent increase in the demand for content, along with the adoption of mobile-first 4K/8K video consumption. Codecs that provide better video quality at higher compression rates are in high demand. South Korea has made advancements in this industry, and below are five opportunities that have emerged due to innovation in various applications.
• Streaming of Ultra High-Resolution Videos (4K/8K): The increasing availability of ultra-high-definition videos has opened new avenues for video codec developers in South Korea. The development of codecs that require low data usage and high-bitrate storage is needed as 8K content becomes more mainstream. Furthermore, the next generation video codecs HEVC and VVC allow seamless streaming of 4K and 8K videos without excessive data usage. The entertainment and broadcasting sectors are opening new avenues with their demand for superior and more equipped solutions.
• Mobile Video Streaming and 5G Integration: With South Korea already investing heavily in 5G infrastructure, the installation of video codecs specialized for mobile video streaming presents a significant opportunity. 5G networks promise massive bandwidths and extremely low latency, which directly aligns with the growing need for premium video content on mobile devices. AV1 and VVC, the next generation codecs, will ensure exceptional performance for mobile streaming due to their improved compression and enhancement capabilities. These codecs help OTT and telecom operators serve the robust market of high-quality mobile videos without delays.
• Live Sports and Esports Streaming: Particularly in South Korea, the youth are heavily invested in esports, creating an immersive and dynamic culture that increases the need for effective live-streaming webcasting. At the same time, esports competitions, along with live sports events, have increased the consumption of HD content in real-time, which requires better video codecs to ensure low-latency streaming. The move to AV1 and VVC video codecs is enabling broadcasters, especially in South Korea, to offer better quality live video streams to large audiences, creating new opportunities for sports and esports content creators in the country.
• Virtual and Augmented Reality Applications: There has been an increasing interest in the applications of Virtual and Augmented Reality (VR/AR). This is an area that presents growth opportunities for next generation video codecs in South Korea. VR/AR applications require high bandwidth in order to provide a realistic and immersive experience. High-quality video compression codecs with low latency are critical to the success of VR/AR technologies. South Korea’s technological advancement, particularly in entertainment and gaming, creates a window of opportunity for codec developers to enhance media immersion designs.
• Telehealth and Remote Communication Services: After the COVID-19 pandemic, the demand for telehealth and remote communication services increased significantly, leading to a greater need for high-quality video conferencing solutions. Video codecs that provide high video resolutions while consuming less bandwidth are vital in telemedicine, online education, and remote work environments. Uninterrupted communication in telehealth and remote learning enables codec innovation, offering new avenues for growth in the healthcare and educational markets.
The South Korean market for next generation video codecs is rapidly expanding across numerous sectors such as ultra-high-definition streaming videos, mobile video watching, live sports and esports, VR/AR, and even telemedicine. With continuous advancements in technologies, there is an increased demand for sophisticated codecs that can meet the need for high-quality video while saving on bandwidth. This creates countless possibilities for codec developers to innovate and dominate the South Korean market.
Next Generation Video Codec Market in South Korea Driver and Challenges
Various technological, economic, and regulatory components have greatly stimulated the market for next generation video codecs in South Korea. These factors include the adoption of high-speed 5G networks in the country, the demand for ultra-high-definition content, and the thriving digital entertainment culture. However, there are several issues in the market that stem from the need to establish standardized codecs, the costs associated with deploying advanced solutions, and the regulatory restrictions regarding data and content usage, which inhibit market growth. Below is a summary of the factors affecting the growth of this market in South Korea.
The factors responsible for driving the next generation video codec market in South Korea include:
• Expansion of the 5G Network: South Korea’s leadership in deploying the 5G network is crucial for the development of the video codec industry. 5G technology supports ultra-low latency and high data rates for video streaming and other advanced video operations. This also facilitates the uptake of next generation video codecs like AV1 and HEVC, which efficiently manage the sophisticated requirements of 4K and even 8K video streams. As the adoption of 5G rises, the number of mobile and broadband video streaming codecs will certainly increase in response to this new trend.
• The Increase in Demand for UHD Content: The demand for UHD content is growing worldwide, and it requires codecs with exceptional compression abilities while efficiently maintaining high quality. As 4K and 8K content become more popular, traditional broadcasters and OTT services have turned to more advanced codecs like HEVC and VVC that reduce bandwidth consumption while simultaneously improving video quality. The growing demand for high-definition content across different devices is one of the most significant drivers for codec innovation in South Korea.
• Progress in AI (Artificial Intelligence) Technology: The application of artificial intelligence (AI) in video compression technologies is another important factor in the South Korean video codec industry. AI enables adaptive video compression, optimizing the quality of videos based on network conditions and device capabilities. AI-powered codecs can compress and encode videos by adjusting video quality to optimal levels as bandwidth usage improves without negatively affecting the viewing experience. As AI technology advances, the personalization it offers to video codecs is expected to drive significant innovations in the market.
• Government Support for Digital Transformation: The South Korean government has actively supported the country’s transformation into a digital economy, including the creation of advanced high-speed media networks and smart media technologies. Government initiatives such as the “Digital New Deal” and investments in 5G infrastructure promote the use of next generation video codecs that enable high-quality video content. These regulatory measures have facilitated ease of doing business for codec developers and increased demand for more sophisticated solutions across sectors such as healthcare, media, and entertainment.
• Increased Focus on Content Security and Data Protection: The next generation video codec market is currently facing new challenges regarding security regulations related to the protection of video data. There is a growing emphasis on content encryption and delivery security, which significantly impacts the value of and compliance with codec requirements. This has led to the development of new codecs that feature encryption-based DRM (Digital Rights Management) and C2DRM (Content Delivery DRM) as key attributes. As a result, codec developers must address both performance and security requirements to meet market needs.
Challenges in the next generation video codec market in South Korea are:
• High Development Costs: One of the barriers to entry in the market is the prohibitive cost of developing next generation video codecs. AV1 and VVC are recent innovations that promise greater efficiency, but their research and development costs are substantial. These costs may prevent adoption by smaller companies or emerging markets. Therefore, improving these systems is essential for smaller content providers. There is a clear need for affordable performance solutions.
• Problems Related to the Lack of Standardization and Interoperability: An additional challenge faced by the South Korean market is the lack of industry-standard video codecs. Although various platforms and devices offer different codecs, their lack of interoperability creates issues in content distribution. The acceptance of next generation codecs can only occur when these codecs are interchangeable across all platforms and devices. Industry players need to collaborate to ensure users can enjoy seamless experiences regardless of the ecosystem being used.
• Spatial Limitations of the Network Infrastructure: Despite South Korea’s advanced telecommunications networks, certain regions and users may still lack access to high-speed internet, including 5G. This inequality hinders the adoption of codecs, as video content delivery is highly dependent on the strength and stability of the network. Rural areas do not benefit from advanced infrastructure, preventing them from using the latest video codecs. As a result, the benefits of high-efficiency codecs may not be fully realized by all consumers without improvements to network infrastructure in underserved areas.
The South Korean next generation video codec market is influenced by the expansion of the 5G network, high demand for digital content, progress in AI, regulatory support for digital transformation, and secure content protection. On the other hand, challenges such as development costs, insufficient standardization, and network infrastructure issues need to be addressed. It will be fascinating to observe how these market drivers and challenges shape the future of this dynamic industry in the region.
List of Next Generation Video Codec Market in South Korea 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 South Korea by Segment
The study includes a forecast for the next generation video codec market in South Korea by video codecs type and application.
Next Generation Video Codec Market in South Korea by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in South Korea by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in South Korea
Market Size Estimates: Next generation video codec in South Korea 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 South Korea 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 South Korea.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in South Korea.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What are the major drivers influencing the growth of the next generation video codec market in South Korea?
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 South Korea?
Answer: The future of the next generation video codec market in South Korea looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in South Korea 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 South Korea 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?
For any questions related to Next Generation Video Codec Market in South Korea, Next Generation Video Codec Market in South Korea Size, Next Generation Video Codec Market in South Korea Growth, Next Generation Video Codec Market in South Korea Analysis, Next Generation Video Codec Market in South Korea Report, Next Generation Video Codec Market in South Korea Share, Next Generation Video Codec Market in South Korea Trends, Next Generation Video Codec Market in South Korea Forecast, Next Generation Video Codec Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.