Video transcoding is the process of converting videos from one format or encoding to another. It is used to optimize videos to stream efficiently across various devices along with improving the video quality and metadata tagging. Video transcoding is widely used by media companies, broadcasters, content distributors and online video platforms to prepare and deliver video content compatible with multiple platforms and devices.

The global video transcoding market is estimated to be valued at US$ 1,600 Mn in 2023 and is expected to exhibit a CAGR of 15% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
Growing demand for video streaming services: The rising demand for video streaming across various OTT platforms and websites is a major factor fueling the growth of the video transcoding market. According to a report by Cisco, Video traffic will account for over 82% of all IP traffic by 2022. The increasing adoption of smartphones and penetration of high speed internet across the globe has led to huge demand for OTT video content which requires transcoding.

Growing internet connectivity worldwide: Widespread adoption of 4G networks and penetration of high speed internet across emerging economies is enabling high resolution video streaming. However, high resolution videos need to be transcoded into multiple formats and resolutions in order to stream smoothly across varied devices and networks. Thus, growing internet connectivity worldwide is expected to propel the demand for video transcoding solutions over the forecast period.

SWOT Analysis
Strength: Video transcoding helps convert videos to different formats for multi-screen viewing and optimization. It allows flexible delivery of videos across various screens and devices. Transcoding also helps reduce file size which leads to faster downloads and smoother streaming.

Weakness: Transcoding is a resource-intensive process. It requires high computing power and processing which increases infrastructure costs. The quality of transcoded video may be slightly reduced compared to the original.

Opportunity: Growing popularity of online video content across smartphones, tablets and smart TVs is driving the need for transcoding. Rising mobile data consumption and increasing 4G/5G penetration will boost video streaming. Adaptive bitrate technology and cloud transcoding offer new opportunities.

Threats: Free and open-source video converters pose pricing pressure on commercial transcoding solutions. Emergence of new codecs like AV1 may require additional investments to support new formats. Cyber threats to cloud infrastructure and data security can impact transcoding services.

Key Takeaways

The global video transcoding market is expected to witness high growth.

Regional Analysis: The market in Asia Pacific region is growing at a fastest pace due to increasing consumption of online video content. Countries like China, India and Japan are dominating the regional market. Rising internet and smartphone penetration along with expanding media and entertainment industry is fueling demand.
North America currently holds the largest share in the video transcoding market owing to strong presence of service providers and content platforms. Growing SVOD subscriptions and live video streaming are driving the need for transcoding solutions.

Key players operating in the video transcoding market are Telestream, Brightcove Zencoder, Coconut, Qencode, Encoding, HaiVision Systems, Harris Broadcast, VBrick Systems, Anvato, Wowza Media, Akamai. Companies are focusing on cloud transcoding to offer scalable and cost-effective services. Partnerships, new product development and mergers & acquisitions are recurring strategies adopted by established transcoders.