The video streaming software market is predicted to grow at a compound annual growth rate (CAGR) of 14.44% to attain a market size of US$10,448.083 million by the end of the analysis period, 2026. The market was valued at US$4,080.814 million in 2019. Video Streaming software is used to watch videos on smart devices such as laptops, smartphones, smart tablets, and others. They play a vital role in the entertainment industry.
The prime reasons supporting the growth of the market are rising internet penetration along with the surging use of smart devices, particularly smartphones and tablets. Further, the rising popularity of on-demand videos has facilitated convenience streaming and hence increased the popularity of the software. Moreover, increasing user-friendliness and the ability of the user to interact with other entities is further boosting the market prospectus. Technological advancement and inculcation of new features to give their product a competitive edge, companies are involved in research, development, and innovation, widening the market size. However, government rules and regulations may restrict the market growth which can negatively impact the industry.
Rising Internet Penetration and Surging Smart Devices Will Boost the Market Growth
The prime reasons supporting the market for video streaming are rising internet penetration globally and the surge use of smart devices. Data from Our World Data shows that the number of internet users has significantly increased from 413 million in 2000 to 3.4 billion in 2016. This number had further increased to 3.97 billion in 2019. Internet accessibility has increased the availability of data and other services to a wider group of the population, hence increasing the market prospectus. Booming internet growth in China and India has considerably boosted the regional market. Further, the internet has been growing at an incredible rate in many countries, including Bangladesh, Ghana, Cote d'Ivoire, and Malawi.
Based on the platform, the video streaming software market is segmented into smartphones and tablets, Pcs/ Laptops, smart TVs, and others. Smartphones and tablets have a noteworthy market share while PCs and laptops are anticipated to dominate during the forecasted period. Wider use of PCs and laptops for better streaming is the prime growth factor of this segment. Moreover, surging demand for smart devices also contributes significantly to the market growth of the video streaming software industry. While through a smart TV, an individual can enjoy favorable content on a big screen, smart phones and smart tablets enable availing these contents at any time and any place. Data shows that more than 47% of Millennials in the US have access to at least one smart device at their home and a majority of them own smartphones. Technological advancement and internet availability on these smart devices enables availing content of video streaming software and hence boosting the market size.
Furthermore, video streaming software saves the user from the tedious process of downloading the content to view it. This software enables the viewer to stream live through the internet and resume at their convenience. This also saves time and the internet of the viewer. Moreover, the growing adaptability on smart devices and the unique content of company-specific software are gaining market attention. Increasing household expenditure on entertainment includes expenditure on software, which notably contributes to market growth.
Non-Liner Video Streaming Will Have a Dominating Share of the Video Streaming Software Market
Based on streaming type, the video streaming software market is fragmented into non-linear streaming and live to stream. Non-linear streaming time is anticipated to dominate the market during the forecasted period. However, live streaming is projected to grow at an exponential rate. The growing popularity of software series and the increasing launch of these series on streaming software will support the market for non-linear streaming. By end-users, the market is distinguished as consumer and enterprise. Consumers will hold a dominating share of the market owing to surging disposable income and switching to video streaming software for entertainment purposes.
Government Regulations May Hinder the Market Growth
Rising instances of cybercrime and growing content on video streaming software have raised government concerns regarding safety and content that is delivered to the consumers. encouraging the government to scrutinize the entertainment industry and hence constraining the market for the video streaming software industry. The government of India, for instance, in November 2020 had implemented rules that bring video streaming service providers such as Netflix, Amazon Prime, and Hotstar, under the governance of the Ministry of Information and Broadcasting. Giving government control of these platforms will restrict the content and hence contain the Indian video streaming software market.
Asia Pacific Video Streaming Software Market Will Grow at an Exponential Rate
Based on geography, the video streaming software market is segmented as North America, South America, Europe, the Middle East and Africa, and Asia Pacific regions. The North American region video streaming software market will dominate the industry during the forecasted period. However, the Asia Pacific video streaming software market is anticipated to grow at an exponential rate during the forecasted period. Surging internet penetration and booming demand for smart devices is the prime reason supporting the market growth during the study period. Further, rising disposable income and increased consumer expenditure on this software for entertainment also play a crucial role in the market growth. Growing awareness contributes to the expansion of the market.
The coronavirus pandemic boosted the market demand for video streaming software market to a significant level. Containment measures adopted to break the cycle of the virus included nationwide lockdown and physical shutdown of all sectors, except those termed at essential services. This resulted in a shutdown of entertainment houses such as movie theaters, adventure parks, malls, theaters, and others. Further, a halt in the filming and shooting industry limited the content of cable TV. This shifted the consumer base video streaming software for entertainment and engagement. Moreover, the introduction of new features also encouraged market growth. Netflix, for instance, introduced a new feature of party where users can stream live with their friends to watch the content available on Netflix. Owing to the pandemic and its new features, the company successfully added 15.8 million new customers, 1.8 million from Europe, 1.36 million from Asia, and 360,000 from Latin America.