The video encoder market is expected to grow at a CAGR of 4.26 percent between 2017 and 2023; from USD 1.70 Billion in 2017 to USD 2.19 Billion by 2023. The growth of this market is being propelled by the growing deployment in broadcast and surveillance applications. The surveillance application includes different verticals such as retail, transportation, residential, commercial, institutional, and military and defense. The ease of connecting analog cameras to the network and the adoption of high-efficiency video coding (HEVC) standard for video encoding are significant factors that are driving the video encoder market.
This market is segmented on the basis of the number of channels, type, application, and geography. On the basis of type, the video encoder market has been segmented into standalone and rack-mounted. Stand-alone video encoders are favorable in situations where only a few number of cameras are to be connected, while rack-mounted video encoders are useful in instances where large installations with analog cameras are required.
The video encoder market by channel has been segmented into 1 channel, 2 channels, 4 channels, 8 channels, 16 channels, and more than 16 channels. Among all, the 16-channel video encoder is expected to grow at the highest rate during the forecast period. It is cost-efficient for small businesses to use 16-channel devices than to switch to expensive IP-based systems. As applications such as commercial, institutional, and retail require a large number of surveillance cameras, 16-channel encoders can be efficiently deployed.
The video encoder market, on the basis of application, has been segmented into broadcast and surveillance. The market for broadcast is likely to hold a larger market share in the coming years. The adoption rate of encoders in the broadcast application to deliver better video content to consumers is increasing the demand for video encoders. In the surveillance application, when there are many analog cameras currently installed at various establishments, video encoders play a significant role in converting these analog systems to IP-based systems.
North America comprises the US, Canada, and Mexico. Among all the geographic regions, North America has been a major market for broadcast and surveillance equipment. Among all the regions, North America has shown its inclination towards adopting advanced technology across various broadcasting and surveillance applications. Major growth drivers of the video encoder market in this region are collaborations between the government and network arenas, institutional partnerships between equipment manufacturers and research collaborations, and large-scale investments in cloud-based services. – Markets and Markets