High efficiency video coding (HEVC) is a video content compression standard produced by the ISO/IEC MPEG (Moving Picture Experts Group) and ITU-T VCEG (Video Coding Experts Group). Also known as the H.265 standard, HEVC is an advanced version of the MPEG-4 AVC (Advanced Video Coding) standard. As compared to AVC, high efficiency video coding offers doubled data compression ratio with a substantially improved or same level of video quality at the same bit rate. The high efficiency video coding standard was designed to achieve data loss resilience, ease of transport system integration, coding efficiency, and implementation ability with parallel processing architectures. With advancements in camera technologies, a significant amount of raw video content is generated, which needs to be compressed efficiently in order for it to be transported in a manageable form at a reduced data size. Further, a rise in the popularity of video streaming web portals, such as YouTube, Amazon Prime Video, and Netflix, has boosted demand for data storage and bandwidth. High efficiency video coding provides up to 50% storage reduction and high image quality with efficient use of encoding algorithms. HEVC compares different parts of the video frame to find out redundant areas, which are then replaced with short descriptions to reduce the size of the video.
Factors such as increase in popularity of HD video and strong emergence of beyond HD video formats are expected to drive the expansion of the high efficiency video coding market during the forecast period. Also, proliferation of various handheld portable devices is expected to fuel the high efficiency video coding solutions market in the coming years. Strong wireless Internet connectivity and availability of online streaming service providers such as iflix and Netflix have increased video consumption on portable devices. On-demand video services providers are competing to provide better customer experience by providing 4K, HD, and UHD standard video formats. However, significantly high pricing of video encoders is likely to hinder the high efficiency video coding solutions market in the coming years. Market players are spending a significant amount of resources on R&D to innovate and develop advances solutions to cater to growing consumer demand. Wide scale adoption of wireless communication technologies such as 3G and 4G in Asia Pacific and the expected launch of 5G in early 2020 are anticipated to present prominent expansion opportunities to the high efficiency video coding solutions market in the near future.
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The global high efficiency video coding solutions market can be segmented based on component, application, and geography. Based on component, the high efficiency video coding solutions market can be classified into hardware, software, and hybrid. The hardware segment can be further divided into application specific integrated circuits (ASIC), field programmable gate arrays (FPGAs), and others. The software segment can be further classified in to on-premise software and cloud-based software. Both the on-premises and cloud-based software segments can be further categorized into encoders and decoders. The cloud-based software segment is expected to expand at a rapid pace due to various advantages of cloud-based software deployment such as significant cost savings and anytime, anywhere availability. In terms of application, the high efficiency video coding solutions market can be categorized into security, pay TV operators, content programmers, broadcasters, enterprise, government, and others. Based on geography, the global high efficiency video coding solutions market can be divided into North America, South America, Europe, Asia Pacific, and Middle East & Africa. Presence of countries with a large subscriber base such as India and China and significant proliferation of mobile devices are expected to have a positive impact on the high efficiency video coding solutions market in Asia Pacific.
Some of the major players operating in the global high efficiency video coding solutions market are VIAVI Solutions Inc., VisualOn, Inc., Vidyo, Inc., Strongene Ltd.,. ALLEGRO DVT2, Renesas Electronics Corporation, Integrated Device Technology, Inc., PathPartner Technology Inc., Elemental Technologies, and Sencore. With an increase in demand for on-demand broadcasting services, new players from developing regions are projected to enter the high efficiency video coding solutions market.
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