Global VoD sector is expected to reach $170.9 billion by 2027 at a CAGR of 16.2%

The global market for video on demand was estimated to be $70.6 billion in 2021. It is projected that the video-on-demand market will grow at a CAGR of 16.2% to reach $170.9 billion by the end of 2027.

Companies Mentioned

• Akamai Technologies
• Alphabet Inc. (Google Inc.)
• Amazon Inc.
• Apple Inc.
• At&T Inc.
• Comcast Corp.
• Indieflix Group Inc.
• Iqiyi Inc.
• Netflix Inc.
• Paramount
• Roku Inc.
• Tencent Holdings Ltd.
• The Walt Disney Co.
• Verizon Communications Inc.

Some of the major factors driving the growth of the market for video on demand include growing internet penetration, increasing use of smartphones and smart TVs, rising trend of cord shaving and cord cutting, and innovation in streaming platforms. However, video-on-demand market growth is being hampered by increasing video piracy.

Video on demand (VoD) is a media distribution system that enables users to stream video content at any time for their convenience. With video-on-demand service, viewers can select a video to view from a central server. This capability of video on demand eliminates the constraints of the traditional broadcasting system. Because streaming a video uses a lot of data and takes up a significant amount of bandwidth, many large video-on-demand providers use a content delivery network (CDN) to quickly deliver high-quality streaming.

Over the last few years, video-on-demand streaming services have grown in number and popularity. Across many countries, consumers have dropped traditional television providers and instead entirely rely on streaming services for their television entertainment. The most popular use of video on demand is for entertainment purposes, but it is also used as a system for distributing educational and even fitness video content.

In this report, the global market for video on demand is segmented based on solution, monetization model, vertical, device, and geography. The video-on-demand market based on solution is categorized into Internet Protocol television (IPTV), pay TV video on demand, and over-the-top (OTT) services.

Internet Protocol television (IPTV) currently dominates the market and was valued at $38.8 billion in 2021. It is estimated that the video-on-demand market for IPTV will grow at a CAGR of 14.6% to reach $86.2 billion by the end of 2027.

IPTV has become popular over the years because of its features that enable subscribers to watch not only TV shows on their favorite channels but also live broadcasts of their favorite shows and movies, as well as live games such as cricket, football, and so forth.

Based on the monetization model, the global video-on-demand market has been segmented into subscription video on demand (SVoD), transactional video on demand (TVoD), and advertisement-based video on demand (AVoD).

The SVoD model gives users unlimited access to the entire library of content for a recurring fee, which could be charged weekly, monthly or yearly. SVoD is the most common form of video on demand and has the highest share of the market. Subscription video on demand (SVoD) was valued at $33.6 billion in 2021 and is forecast to reach $98.4 billion by the end of 2027.

Based on vertical, the global video-on-demand market has been segmented into media and entertainment, education and training, health and fitness, and other, with the last including travel, documentaries, news, and more.

Media and entertainment represent the largest segment of the videoon- demand market. It includes movies, TV shows, and other types of entertainment content such as music videos and gaming. The media and entertainment segment was valued at $34.0 billion in 2021 and is forecast to reach $90.5 billion by the end of 2027, with a CAGR of 18%. PR Newswire