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The video-on-demand (VOD) market size is estimated to grow at a CAGR of 15.98% between 2022 and 2027. The market size is forecast to increase by USD 187.53 billion. The growth of the market depends on several factors, including the growing preference for cloud streaming services, increasing penetration of mobile computing devices, and mobile advertisements increasing revenue of AVOD platforms.
This report extensively covers market segmentation by platform (smartphone, laptops, and smart TV), type (subscription video-on-demand, advertising video-on-demand, and transaction video-on-demand), and geography (North America, Europe, APAC, South America, and Middle East and Africa). The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Akamai Technologies Inc., Amazon.com Inc., Amdocs Ltd., Apple Inc., Cisco Systems Inc., Comcast Corp., Huawei Technologies Co. Ltd., KWIKmotion, Limelight Networks Inc., Muvi LLC, Roku Inc., Verizon Communications Inc., Walmart Inc., Alphabet Inc., AT and T Inc., Fujitsu Ltd., Liquid Media Group, Lumen Technologies Inc., Netflix Inc., and The Walt Disney Co.
Figure 1: Video-on-demand (VOD) Market Share
Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The mobile advertisements increasing the revenue of AVOD platforms are notably driving the market growth. Mobile applications have emerged as a potential medium for advertisers to expand their reach. The rising adoption of affordable mobile computing devices such as smartphones and tablets has increased consumer preference for mobile platforms. Mobile devices have become the preferred medium to consume information. Mobile advertising is one of the major revenue sources for application developers.
Mobile hardware and software developers focus on improving functionality by including new features. Hence, the number of downloads of new applications is rising, which is also increasing the revenue of AVOD platforms. Mobile advertisements are the key source of revenue for AVOD platforms. In 2021, the global mobile advertising market was valued at USD 360.45 billion and was expected to reach USD 403.70 billion by 2023, growing at a CAGR of 12.54%, as per Technavio's research. Such factors will drive the growth of the global VOD market during the forecast period.
Increasing penetration of smart TVs is the key trend in the market. The growing penetration of smart TVs is expected to increase the demand for VOD during the forecast period. This is because smart TVs have an inbuilt capability to stream applications such as Netflix, Hulu, Disney Hotstar, and Amazon Prime. The penetration of smart TVs is growing due to the rising number of technological advances with respect to consumer electronics. The growing adoption of smart technologies across the world is also expected to fuel the demand for smart TVs during the forecast period. Moreover, features such as cameras and gaming are contributing to the increased sales of smart TVs.
Many enterprises are launching smart TVs to cater to the growing demand in the market. For instance, in December 2022, OnePlus launched a new Android smart TV- OnePlus TV 55 Y1S Pro in India. The smart TV is loaded with a 55-inch 4K display, full-range speakers, and OxygenPlay 2.0. Similarly, in January 2022, Samsung Electronics launched MICRO LED, Neo QLED, and Lifestyle TVs, with next-generation picture quality and a range of cutting-edge personalization options. With the launch of new smart TVs, the chances of consumers opting for online streaming services will also increase, which will support the growth of the market during the forecast period.
The availability of pirated video content on online platforms is a major challenge in the market. The growth of the global VOD market is hindered by the growing market of video piracy. One of the major threats is the rising popularity of torrents. A torrent is a digital file that contains metadata. Users can download VOD using torrent files with the help of software such as BitTorrent. The use of services such as BitTorrent is illegal, as the content shared through it is mostly copyrighted, which makes it illegal to share. Users can download any TV show, movie, documentary, and video through these torrent files free of cost. This eliminates the need for a subscription to video streaming services.
The market has the presence of various online video streaming services, such as Netflix, Prime Video, Hulu, and Comcast, which offer exclusive content. It is expensive for a user to get subscriptions to all of these services. However, torrents offer a single source to download all such content. In addition, the content shared through torrents is mostly ad-free, which is an advantage over AVOD streaming services. Hence, several users prefer to use torrents and do not subscribe to these services, which is a significant challenge to the growth of the global VOD market during the forecast period.
This video-on-demand (VOD) market report extensively covers market segmentation by Platform (smartphone, laptops, and smart TV), Type (subscription video-on-demand, advertising video-on-demand, and transaction video-on-demand), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
The market share growth of the smartphone segment will be significant during the forecast period. The growing popularity of mobile access to VOD is shifting the control of viewing content to the users. Currently, users have the power and freedom to decide when, how, and where they want to watch content and how much they want to pay for it. Moreover, text content has been one of the most successful segments in the recent past. The use of digital text allows users to save money on both local and international text content, such as international magazines and journals. These factors are expected to drive the adoption of smartphone VOD during the forecast period.
Figure 2: Video-on-demand (VOD) Market by Type (2017-2027)
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The smartphone and laptops segment was valued at USD 51.53 billion in 2017 and continued to grow until 2021. Technavio believes that the perspective of consumers will change significantly with the growing popularity of Internet-based VOD services. This changing perspective is expected to create a shift from traditional programs (TV broadcasting or radio broadcasting) to mobile platform-delivered VOD (including video, audio, and text) platforms. This emerging market scenario is expected to raise the market share of mobile device content, mainly mobile app-based content, during the forecast period.
Based on type, the subscription video-on-demand segment holds the largest market share. SVOD vendors charge subscription fees for access to movies, TV shows, and sports. These subscriptions are flexible and can be canceled by consumers. They typically range from 6 months to a year, with monthly cable subscriptions being costly. Popular SVOD providers like Netflix, Amazon, and Hulu are enhancing content quality. Growing subscriber numbers are boosting vendor revenues, driving SVOD's growth in the forecast period alongside increasing demand for subscription-based OTT platforms and pay-TV.
Figure 3: Video-on-demand (VOD) Market by Region
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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The AVOD segment is expected to significantly drive the growth of the VOD market in the region during the forecast period. AVOD allows users to log in for free and stream videos. However, the content offered through this service is ad-supported. AVOD is beneficial to all the stakeholders in the value chain. Consumers get free access to VOD, whereas content providers generate revenue from companies that want to feature their ads. Advertising companies get access to customers and can implement target marketing. Hence, AVOD subscriptions are witnessing significant growth in the region. Several vendors are trying to enter this market, which is expected to drive the growth of the global VOD market. Hence, due to the above factors, the total subscriber base for OTT services is rising significantly in the region, which will drive the growth of the regional market during the forecast period.
In 2020, the COVID-19 pandemic positively impacted the regional VOD market. The VOD market in North America will experience high growth during the forecast period. This is primarily due to the rapid shift of preferred advertising modes from physical to digital platforms such as social media advertising. Owing to the availability of a large base of target audiences, brands have a greater chance of monetizing their advertisements. The monetization aspect of the regional market is anticipated to grow during the forecast period as consumers are rapidly shifting toward online shopping.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Netflix Inc. - The company offers on-demand video services through its video streaming app called Verizon with a subscription model. The company offers subscription streaming entertainment services with over 167 million paid streaming memberships in about 190 countries, consisting of TV series, documentaries, and feature films across a wide variety of genres and languages.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Video-on-demand (VOD) Market Scope |
|
Report Coverage |
Details |
Page number |
170 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 15.98% |
Market growth 2023-2027 |
USD 187.53 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
15.6 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 32% |
Key countries |
US, China, India, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Akamai Technologies Inc., Amazon.com Inc., Amdocs Ltd., Apple Inc., Cisco Systems Inc., Comcast Corp., Huawei Technologies Co. Ltd., KWIKmotion, Limelight Networks Inc., Muvi LLC, Roku Inc., Verizon Communications Inc., Walmart Inc., Alphabet Inc., AT and T Inc., Fujitsu Ltd., Liquid Media Group, Lumen Technologies Inc., Netflix Inc., and The Walt Disney Co. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Platform
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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