The global online video platform market will reach USD 854.64 million by 2020, growing at a CAGR of 14.88%, according to Technavio’s latest report.
Ishmeet Kaur, a lead analyst from Technavio, specializing in research on enterprise application sector, says, “Digital media and marketing professionals are driving the growth of online advertisement market, which in turn, increases the demand for online video platform market. In 2015, internet advertising by social media accounted for 32%-34% of the global internet advertisement market, online video accounted for 23%-26%, which is likely to increase during the forecast period, and paid research accounted for 15%-17%.”
Online video consumption has shown massive growth over the past 2-3 years. Among the digital devices, mobile devices have taken over as the preferred medium of online video consumption. The smartphone market has seen an exceptional growth in the last 5 years.
As per Technavio, in 2016, smartphones worldwide grew at a year-over-year (YoY) rate of 8%-10% as compared to all cell phones, which grew at 2%-4%. Smartphones crossed 1.4 billion mark in 2015 and are expected to reach around 2 billion by 2020. This increase in the number of mobile devices is making it easier for consumers to access video content, anytime anywhere.
The top four emerging trends driving the global online video platform market according to Technavio ICT research analysts are:
i. Introduction of video analytics
The increased number of online forums have boosted the demand for video analytics. The majority of the vendors in the market have started offering analytics solutions that track the number of viewers at any given time, along with videos viewed, viewing rate, geographic distribution, and real-time data about upload and download speed. This analytical solution offers actionable insights like data correlation that organizations and video content publishers can use to manage video content.
“Analytical solutions work as a backbone for the interaction of online and mobile videos and help track and manage marketing campaigns. The video analytics market is at a nascent stage and will gain significant traction during the forecast period,” according to Ishmeet.
ii. Growth in subscriptions of 4G networks
Technological advances have enabled operators to provide high-quality, high-bandwidth, and high-speed internet, driving the growth of 4G subscriptions. 4G subscriptions will increase at a CAGR of 31.06% during the forecast period. This increase in 4G subscriptions will drive digital data consumption.
Widespread investment in 4G and upcoming 5G network rollouts has led to greater availability of higher data speed required for video data streaming. Investment in network upgrading and spectrum will drive data growth. The US alone has spent around USD 40 billion from 2012 to 2015 on network upgradation. Globally, a whole new generation of online video has emerged with access to compatible multimedia capable devices such as smartphones, tablets, and improved network bandwidths (4G and 5G coverage).
iii. Increase in number of mobile app downloads
With increased penetration of mobile devices and the internet, the number of mobile app downloads has also risen from 2013. As companies advertise on apps, the scope for in-app advertising has expanded for a range of applications. For instance, several ads posted in gaming app stores such as Hill Climb Racing and Bubble Shooter are not related to the games but to picture editing, music streaming, and safe lock apps.
iv. Rise in video conferencing
By 2018, video conferencing will become one of the most widely used methods of communication. Employees can use consumer devices such as PCs and Android smartphones and tablets, to connect and communicate with each other. Video conferencing using Skype is inexpensive and easy to use. More than 70% of the SMEs have replaced business travel with video-based communication. Several large companies are also using video conferencing to reduce business-related travel costs. Since online video platforms help companies record, webcast, and stream video conference meetings, the high demand for video conferencing will drive the demand for online video platforms during the forecast period.
