The global market for Next Generation Video Codecs was estimated at US$2.6 Billion in 2024 and is projected to reach US$7.9 Billion by 2030, growing at a CAGR of 20.4% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Next Generation Video Codecs market.
The rising demand for ultra-HD content, live streaming, video conferencing, and immersive media like AR/VR is accelerating the need for more advanced, bandwidth-efficient codecs. These new standards enable smoother streaming on limited bandwidth, faster load times, and reduced storage costs making them crucial for content delivery networks (CDNs), OTT platforms, and mobile operators. Their adoption is further reinforced by the growth of remote work, online education, and real-time video-driven applications in both consumer and enterprise sectors.
AI and machine learning are being employed to optimize encoding pipelines, enabling adaptive bitrate streaming that dynamically adjusts quality based on network conditions and device capabilities. Cloud-based transcoding solutions are further enabling real-time video processing for large-scale applications such as surveillance, gaming, and content distribution. Open-source development, royalty-free licensing (as with AV1), and cross-industry collaboration are driving global momentum toward standardizing and commercializing next-gen codecs at scale.
Global Next Generation Video Codecs Market - Key Trends & Drivers Summarized
Why Are Next Generation Video Codecs Essential to the Future of Media Delivery?
Next generation video codecs are transforming how video content is compressed, transmitted, and consumed across devices and platforms. As high-resolution content (4K, 8K, HDR) becomes the norm in broadcasting, streaming, gaming, and teleconferencing, traditional codecs like AVC/H.264 are struggling to deliver efficient compression at acceptable bandwidths. Next-gen codecs such as HEVC (H.265), AV1, VVC (H.266), and EVC offer significantly better compression efficiency, reducing data sizes by 30-50% without sacrificing visual quality.The rising demand for ultra-HD content, live streaming, video conferencing, and immersive media like AR/VR is accelerating the need for more advanced, bandwidth-efficient codecs. These new standards enable smoother streaming on limited bandwidth, faster load times, and reduced storage costs making them crucial for content delivery networks (CDNs), OTT platforms, and mobile operators. Their adoption is further reinforced by the growth of remote work, online education, and real-time video-driven applications in both consumer and enterprise sectors.
What Technological Innovations Are Enhancing Codec Efficiency and Adoption?
Technological improvements in video encoding algorithms, AI-based content analysis, and hardware acceleration are propelling the adoption of next-gen codecs. VVC and AV1 incorporate advanced intra-frame prediction, block partitioning, and motion compensation techniques that allow for higher compression ratios while maintaining detail and reducing artifacts. Hardware support in GPUs, mobile SoCs, and smart TVs is also maturing, ensuring smooth playback and low power consumption even at high resolutions.AI and machine learning are being employed to optimize encoding pipelines, enabling adaptive bitrate streaming that dynamically adjusts quality based on network conditions and device capabilities. Cloud-based transcoding solutions are further enabling real-time video processing for large-scale applications such as surveillance, gaming, and content distribution. Open-source development, royalty-free licensing (as with AV1), and cross-industry collaboration are driving global momentum toward standardizing and commercializing next-gen codecs at scale.
What's Driving the Growth of the Next Generation Video Codecs Market?
The growth in the next generation video codecs market is driven by factors such as exponential video traffic growth, rising adoption of UHD and immersive formats, and the need to minimize transmission costs over congested networks. As video becomes the dominant form of internet traffic, next-gen codecs are essential to maintain performance, reduce buffering, and improve user experience across geographies. Increasing support from chipset makers and video platform providers is accelerating adoption in both consumer electronics and professional broadcasting systems.Key Insights:
- Market Growth: Understand the significant growth trajectory of the AVC segment, which is expected to reach US$2.6 Billion by 2030 with a CAGR of a 18.4%. The AV1 segment is also set to grow at 20.9% CAGR over the analysis period.
- Regional Analysis: Gain insights into the U.S. market, valued at $676.6 Million in 2024, and China, forecasted to grow at an impressive 19.5% CAGR to reach $1.2 Billion by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.
Why You Should Buy This Report:
- Detailed Market Analysis: Access a thorough analysis of the Global Next Generation Video Codecs Market, covering all major geographic regions and market segments.
- Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
- Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Next Generation Video Codecs Market.
- Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.
Key Questions Answered:
- How is the Global Next Generation Video Codecs Market expected to evolve by 2030?
- What are the main drivers and restraints affecting the market?
- Which market segments will grow the most over the forecast period?
- How will market shares for different regions and segments change by 2030?
- Who are the leading players in the market, and what are their prospects?
Report Features:
- Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
- In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
- Company Profiles: Coverage of players such as Amazon.com, Inc., Apple Inc., Axis Communications AB, Bitmovin, Inc., and more.
- Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.
Some of the 42 companies featured in this Next Generation Video Codecs market report include:
- Amazon.com, Inc.
- Apple Inc.
- Axis Communications AB
- Bitmovin, Inc.
- Cisco Systems, Inc.
- CommScope Inc.
- Dahua Technology Co., Ltd.
- Flir Systems, Inc.
- Google LLC
- Harmonic Inc.
- Hikvision Digital Technology Co., Ltd.
- Intel Corporation
- Matrox Electronic Systems Ltd.
- Motorola Solutions, Inc.
- Netflix, Inc.
- NVIDIA Corporation
- Sumavision Technologies Co., Ltd.
- Tencent Holdings Ltd.
- VITEC
- Wilus Group
This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:
- Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
- Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
- Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
- Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
- Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
- Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
- Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.
Table of Contents
I. METHODOLOGYII. EXECUTIVE SUMMARY2. FOCUS ON SELECT PLAYERSIII. MARKET ANALYSIS
1. MARKET OVERVIEW
3. MARKET TRENDS & DRIVERS
Surge in Streaming Video Consumption Fuels Shift to Bandwidth-Efficient Codecs Like AV1, VVC, and EVC
4. GLOBAL MARKET PERSPECTIVE
UNITED STATES
CANADA
JAPAN
CHINA
EUROPE
FRANCE
GERMANY
ITALY
UNITED KINGDOM
REST OF EUROPE
ASIA-PACIFIC
REST OF WORLD
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Amazon.com, Inc.
- Apple Inc.
- Axis Communications AB
- Bitmovin, Inc.
- Cisco Systems, Inc.
- CommScope Inc.
- Dahua Technology Co., Ltd.
- Flir Systems, Inc.
- Google LLC
- Harmonic Inc.
- Hikvision Digital Technology Co., Ltd.
- Intel Corporation
- Matrox Electronic Systems Ltd.
- Motorola Solutions, Inc.
- Netflix, Inc.
- NVIDIA Corporation
- Sumavision Technologies Co., Ltd.
- Tencent Holdings Ltd.
- VITEC
- Wilus Group
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 148 |
| Published | June 2025 |
| Forecast Period | 2024 - 2030 |
| Estimated Market Value ( USD | $ 2.6 Billion |
| Forecasted Market Value ( USD | $ 7.9 Billion |
| Compound Annual Growth Rate | 20.4% |
| Regions Covered | Global |
