AVOD Market - Global Forecast 2025-2032

The advertising-supported video-on-demand (AVOD) market is undergoing fast-paced expansion, driven by evolving consumer preferences, technological advances, and shifting regional dynamics. For leaders in media, technology, and digital advertising, navigating this complex environment requires actionable insight and clarity.

Market Snapshot: AVOD Market Size and Growth

The AVOD market grew from USD 34.08 billion in 2024 to USD 36.76 billion in 2025 and is set to advance at a compound annual growth rate (CAGR) of 7.92%, reaching USD 62.72 billion by 2032. This illustrates the increasing importance of advertising-supported streaming for both content providers and advertisers seeking to reach diverse digital audiences.

Scope & Segmentation

• Device Type: Desktop (macOS, Windows), Smart TV, Smartphone (Android, iOS), Tablet
• Content Genre: Entertainment (comedy, documentaries, drama, reality), Kids, Music, News, Sports (collegiate, esports, professional)
• Advertising Format: Display overlay (dynamic, static), Mid-roll, Post-roll, Pre-roll
• Age Group: 18-24, 25-34, 35-44, 45-54, 55+
• Gender: Female, Male
• Ad Length: 30-60 seconds, Over 60 seconds, Under 30 seconds (6-15 seconds, 16-30 seconds)
• Region: Americas (North America: United States, Canada, Mexico; Latin America: Brazil, Argentina, Chile, Colombia, Peru); Europe, Middle East & Africa (Europe: United Kingdom, Germany, France, Russia, Italy, Spain, Netherlands, Sweden, Poland, Switzerland; Middle East: United Arab Emirates, Saudi Arabia, Qatar, Turkey, Israel; Africa: South Africa, Nigeria, Egypt, Kenya); Asia-Pacific (China, India, Japan, Australia, South Korea, Indonesia, Thailand, Malaysia, Singapore, Taiwan)
• Leading Companies: YouTube, Roku, Samsung Electronics, Pluto TV, Tubi, Peacock, Xumo, Amazon, Chicken Soup for the Soul Entertainment, VIZIO

Key Takeaways for AVOD Market Decision-Makers

• AVOD platforms are redefining consumer engagement by expanding content libraries and optimizing ad delivery to enhance viewing experiences.
• Advanced data analytics power granular audience targeting, enabling advertisers to improve campaign precision while ensuring message relevance.
• Privacy regulations have prompted a shift to first-party data collection and contextual advertising, transforming collaboration between technology providers, publishers, and brands.
• Consistent mobile internet adoption fuels demand for short-form content and innovative advertisement formats, especially in Asia-Pacific and youth-driven markets.
• Segment-specific ad strategies—such as tailored lengths for different age groups and device preferences—are proving essential for maximizing engagement and advertiser returns.
• Ongoing innovations in ad decisioning and encoding technologies help platforms adapt to evolving consumer expectations and regulatory landscape.

Tariff Impact on AVOD Market Cost Structures

Newly introduced tariffs on digital delivery infrastructure in 2025 have directly influenced operational costs for AVOD platforms, particularly in the United States. Increased expenses around bandwidth and hardware have led providers to renegotiate supply agreements and adopt more efficient content caching and delivery strategies. These structural shifts emphasize the value of scalable cloud solutions and strategic procurement to sustain profitability and service consistency amid regulatory changes.

Methodology & Data Sources

This report applies a multi-faceted approach, combining quantitative metrics from advertising performance and usage analytics with proprietary interviews from industry executives and technology vendors. The research integrates qualitative thematic review, data triangulation, and peer-review validation for comprehensive and reliable insights.

Why This Report Matters

• Enables senior decision-makers to identify emerging revenue streams and optimize content distribution strategies across devices and regions.
• Supports compliance and agile response to evolving regulatory conditions, privacy demands, and competitive challenges within digital video ecosystems.
• Facilitates informed strategic planning for partnerships, technology adoption, and investment based on regional drivers and consumer segmentation.

Conclusion

The AVOD ecosystem presents new opportunities for growth, collaboration, and audience connection. By leveraging insights from this research, industry leaders can shape resilient strategies, ensure compliance, and secure their competitive position in an evolving media landscape.

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