Market Challenges And Opportunities

Analyst Viewpoint:

The Advanced Video Coding (AVC) Market is poised to grow significantly over the next few years driven by the rising demand for 4K and higher resolution video content. The superior compression capabilities of AVC make it well suited to efficiently distribute high-bandwidth content. Many media and entertainment companies are actively investing in 4K production, which will boost the need for AVC encoding. On the streaming front, major players like Netflix have already embraced 4K, and the widespread availability of ultra-HD content will accelerate market growth.

One of the main restraints could be the emergence of new video codecs like HEVC and VVC that offer even higher compression compared to AVC. However, AVC still enjoys a significant installed base advantage and wide device support, which will allow it to coexist with newer technologies for the foreseeable future. The adoption of 5G networks also provides a major opportunity as it will enable high-speed transportation of 4K videos for applications like VR and AR.