Impact of COVID-19 on Video Encoder Market
The video encoder market is witnessing significant growth owing to the COVID-19 pandemic. The spread of the novel Coronavirus across the globe has resulted in nationwide lockdowns and the shutting down of businesses. The partial or complete nationwide lockdowns have impacted the global economy and workforce. Additionally, the restrictions confining individuals to their homes have proven to be responsible for fueling the demand for video streaming platforms such as Amazon Prime, Netflix, and Hotstar. The increasing trend of live video streaming, video streaming, and video content over the Internet has increased the demand for video encoders during the lockdown. The video encoders enable the user to play a recording live on the screens. According to the MRF analysis, more than 50% of the population is using video streaming platforms more than they used to before the COVID-19 outbreak. On the flip side, most of these platforms are experiencing a massive surge in traffic.
Additionally, the increasing adoption of cloud services owing to the availability of ample storage space for data is also responsible for the growth of the market. The North America region accounted for the largest share in the video encoder market owing to high investments made by the companies in the region for the development of such technologies. The factors responsible for the growth of the video encoders market include the institutional partnership agreement between the equipment manufacturers, a collaboration between the network arenas and government, and high investments in cloud-based services. Cloud-based video streaming, which includes live streaming, is expected to drive the demand for video encoders during the COVID-19 pandemic.
Revenue Growth of Video Streaming in (%)