Video infrastructure markets to grow by 37%

Sam Rosen

Video infrastructure markets, including broadcast pre- and post-production, video encoding, and VOD and CDN hardware, will grow at a pace of 37% over the next 5 years, according to ABI Research. 

The report predicts growth despite the impact of virtualization and the separation of hardware and software requirements. ABI said the encoder and transcoder market “represents the brightest spot in the video industry” with growth here currently 9% annually.

By comparison, growth in the satellite, VOD and CDN markets is between 4% to 5% and in the broadcast pre- and post-production market 6%.

“Broadcasters and operators virtualizing their workflow are likely to buy classic IT servers, while continuing to rely on video specialists for their application and software requirements,” according to ABI Research practice director Sam Rosen.

“In theory, this means that video vendors are supplying less of the total solution; however, rising overall business complexity of areas, including ad workflows and over-the-top delivery, are offsetting this downward pressure on revenues.”