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Encoder and transcoder market expected to boom

Professional encoder and transcoder channel shipments are expected to grow by 25% over the next four years, with over 140,000 channels being shipped in 2017, according to a report by IHS.

According to the report, revenues for encoders and transcoders will grow at a slower rate of about 9% as chassis density increases and per-channel costs are pushed down for MPEG-2 and MPEG-4 encoders. The industry as a whole will be worth about US$800 million by 2017, according to IHS.

Live multiformat transcoders used in linear multiscreen and OTT distribution will account for 30% of the growth to 2017, according to IHS. Cable distribution will be the next biggest application, accounting for 25% of growth. While multiscreen will generate the fastest growth, the bulk of encoders and transcoders will still be dedicated to traditional broadcast, with broadcast accounting for 60% of shipments and 40% of revenue.

The number of unique channels will grow by 15-30% in established markets and by 100-200% in emerging markets, according to IHS, driving demand for contribution and distribution encoders.

The top five companies in the encoder and transcoder segment are Arris – now including Motorola Home – Cisco, Ericsson, Harmonic and Thomson Video Networks, according to the report’s authors.