The Global Video on Demand (VoD) Market size is expected to reach $328.8 billion by 2030, rising at a market growth of 13.1% CAGR during the forecast period.
Government agencies often need to provide training programs and educational content to their employees. VoD platforms offer a convenient and efficient way to deliver training materials, educational videos, and other relevant content. Consequently, the government and public sector segments would generate approximately 13.70 % share of the market by 2030. VoD services can be used for internal communication within government organizations. Hence, owing to these factors, there will be increased demand in the segment.
High-speed internet enables users to stream content in high definition (HD), Ultra HD (4K), and even higher resolutions without buffering or interruptions. This enhances the overall viewing experience, attracting users who value high-quality visuals. Thus, these factors can assist in the expansion of the market.
Additionally, Subscription-based models offer video-on-demand (VoD) service providers a consistent and anticipated revenue stream. Monthly subscription fees create a consistent income stream, allowing platforms to plan and invest in content creation, infrastructure, and service improvements. Therefore, these factors can fuel the demand for the video on demand (VoD) services in the coming years.
However, High-demand content, especially popular movies, TV shows, and original productions, often have a considerable price tag. As multiple streaming services compete for the rights to such content, bidding wars can increase costs. Platforms strive to differentiate themselves by offering exclusive content. However, acquiring exclusive rights can be costly, and securing a diverse range of exclusive content to appeal to a broad audience adds to the financial burden. Thus, these aspects can hamper the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
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Challenges On the basis of deployment model, the market is bifurcated into cloud and on-premises. In 2022, the on-premises segment witnessed a substantial revenue share in the 39.13% market. On-premises solutions can offer better performance and lower latency compared to cloud-based alternatives. This is crucial for VoD services, as users expect quick and seamless access to high-quality content. Depending on a business's specific needs and usage patterns, an on-premises solution may be more cost-effective in the long run, especially for large enterprises that can achieve economies of scale.
Based on offering, the market is segmented into solutions and services. The solution segment held the 74.29% revenue share in the market in 2022. As more people worldwide gain access to high-speed internet and digital devices, the consumer base for VoD services is expanding. This surge in users is driving the need for robust and scalable solutions to meet the increasing demand for content. Solutions providers are constantly innovating to enhance the quality and efficiency of video streaming, attracting both consumers and content creators.
The solution segment is further segmented into pay TV, OTT, and IPTV. In 2022, the OTT segment witnessed the 44.55% revenue share in the market. Many over the top (OTT) platforms invest heavily in producing original content and securing exclusive licensing agreements. Original series and exclusive movies can be major drawcards, encouraging viewers to subscribe to platforms that offer unique and premium content not available elsewhere. Hence, the segment will expand rapidly in the coming years.
On the basis of platform type, the market is divided into smartphones, tablets/laptops, smart TVs, and others. In 2022, the smart TVs segment witnessed a 18.7% revenue share in the market. Increasing smart home trends have led to increased adoption of smart TVs. Smart TVs offer built-in apps and easy navigation, making accessing various streaming services convenient. As per the data from the Government of China, the country’s smart home industry experienced a substantial development rate of nearly 20 percent annually from 2016 to 2021, expanding from 260 billion yuan ($36.25 billion) to 580 billion yuan. Hence, these aspects will pose lucrative growth prospects for the segment.
By content-type, the market is segmented into movies, music, TV shows/web series, educational/fitness programs, and others. The movies segment procured the 37.14% revenue share in the market in 2022. VoD services offer an extensive and varied collection of films, encompassing timeless classics and contemporary releases. This extensive selection caters to various tastes and preferences, attracting a wider audience. Many VoD platforms invest heavily in producing original movies and exclusive content.
Based on monetization model, the market is divided into subscription video on demand (SVoD), transactional video on demand (TVoD), advertising-supported video on demand (AVoD), free Ad-supported streaming TV (FAST), and others., the transactional video on demand (TVoD) segment witnessed a 21.25% revenue share in the market. TVoD allows users to manage their entertainment expenses more efficiently. Instead of paying a monthly subscription fee, viewers can selectively pay for the content they are interested in, controlling their overall spending on digital entertainment. TVoD platforms often provide access to the latest movie releases shortly after they leave theaters.
Based on vertical, the market is segmented into BFSI, education, government & public sector, healthcare & life sciences, media & entertainment, and others. In 2022 The media and entertainment segment witnessed a 48.05% revenue share in the market. VoD platforms have invested heavily in producing original content, including movies, series, and documentaries. Exclusive content attracts subscribers and enhances the competitive edge of these platforms. Consumers are willing to pay for access to a vast content library without the need for traditional cable or satellite subscriptions.
Free Valuable Insights: Global Video on Demand (VoD) Market size to reach USD 328.8 Billion by 2030
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired a 30.1% revenue share in the market. The increasing availability and adoption of high-speed internet across Europe have facilitated the growth of online streaming services. Consumers increasingly prefer on-demand content over traditional broadcasting, allowing them to watch content conveniently. Therefore, these factors can help in the expansion of the segment.
| Report Attribute | Details |
|---|---|
| Market size value in 2022 | USD 124.4 Billion |
| Market size forecast in 2030 | USD 328.8 Billion |
| Base Year | 2022 |
| Historical Period | 2019 to 2021 |
| Forecast Period | 2023 to 2030 |
| Revenue Growth Rate | CAGR of 13.1% from 2023 to 2030 |
| Number of Pages | 477 |
| Number of Tables | 770 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Market Share Analysis, Porter’s 5 Forces Analysis, Company Profiling, Companies Strategic Developments, SWOT Analysis, Winning Imperatives |
| Segments covered | Offering, Deployment Model, Platform Type, Content-Type, Monetization Model, Vertical, Region |
| Country scope |
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| Companies Included | Netflix, Inc., Amazon.com, Inc., Google LLC (Alphabet Inc.), The Walt Disney Company, Apple, Inc., Comcast Corporation, Sony Corporation, Kaltura, Inc., Muvi, Reliance Industries Limited |
By Deployment Model
By Offering
By Platform Type
By Content-Type
By Monetization Model
By Vertical
By Geography
This Market size is expected to reach $328.8 billion by 2030.
Availability And Widespread Access To High-Speed Internet are driving the Market in coming years, however, High Content Licensing Costs Of Vod Services restrictions issues restraints the growth of the Market.
Netflix, Inc., Amazon.com, Inc., Google LLC (Alphabet Inc.), The Walt Disney Company, Apple, Inc., Comcast Corporation, Sony Corporation, Kaltura, Inc., Muvi, Reliance Industries Limited
The expected CAGR of this Market is 13.1% from 2023 to 2030.
The Cloud segment is leading the Market by Deployment Model in 2022 there by, achieving a market value of $216.8 billion by 2030.
The North America region dominated the Market by Region in 2022, and would continue to be a dominant market till 2030; there by, achieving a market value of $108.4 billion by 2030.
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