Online Video Platform Market Size, Share & Trends Analysis Report By Component, Type (Video Processing, Video Analytics, Video Management), Streaming Type, End Users, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global online video platform market size was valued at USD 6.13 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 18.4% from 2021 to 2028. An online video platform is fee-based software that provides a function to the content owners and publishers to trans code, manage, store, publish, track, and monetize online video content on their channel.

In addition, the platform also facilitates users to stream live videos and simultaneously record the live broadcasting, and host videos as per the demand. At present, the online video platform is getting significant traction from handheld devices such as smartphones and tablets, as the gadgets are compatible to play live or pre-uploaded video content at any place and at any time.

The market has recorded significant growth over the past few years due to the rising popularity of online videos, with viewership steadily surpassing traditional video content platforms such as cable and satellite television. The trend is positively impacting the online video platforms market, majorly in developed regions, including North America and Europe. For instance, in 2018, AT&T-owned DirecTV, a U.S.-based satellite pay television provider, lost 1.2 million PayTV customers worldwide. This was largely attributed to the competition created by Over the Top (OTT) and Video on Demand (VOD) players. On the contrary, DirecTV Now, AT&T's online version of DirecTV, gained 436,000 new subscribers globally the same year, thanks to shifting preference toward online video content.

Moreover, the increased penetration of advanced wireless telecom networks and easy internet access, across developing regions, is shifting mass users toward online video platforms. For instance, the high penetration of 4G networks across the globe is making seamless access to high-quality online video content possible for many users. The global introduction and adoption of the 5G network in the next few years are expected to significantly increase video content consumption on online platforms in near future. The super-fast internet browsing speed promised by the network (nearly 13 times the average network connection at present) is expected to play a key role in the increased demand for video content on online platforms globally.

The growing practice of designing video-based marketing content to increase brand awareness among users is attracting more enterprises toward online video platforms. For instance, in 2016, Toyota launched the Feeling the Street campaign that invited street musicians from across the world to capture their acts and post videos on the social media platform. The whole experience was shared with fans on the social medial platform. The campaign was a major success and increased the company’s user engagement by about 440% compared to the previous year.

An increasing number of brands are using live video shopping events to attract more customers via digital platforms. A recent instance of this would be the live event hosted by Samsung Sweden in Sept 2020 to help its customers learn more about its latest foldable series of smartphones, the Galaxy Z Fold2. In 2019, a similar launch event had yielded the company around USD 60 billion in revenue across the globe. The entire online video campaign was managed by Bambuser, a live-streaming video company headquartered in Stockholm. Other prominent players providing similar solutions include Alphabet Inc.; Endavo Media.; Frame.io, Inc.; JW player; Facebook; and MediaMelon Inc.

According to media reports, it is estimated that nearly 1/4^thof the world’s population has been locked in their homes due to the COVID-19 pandemic and the corresponding social distancing norms issued by local governments. This has significantly limited the entertainment options for individuals. This has resulted in a significant spike in the worldwide viewership of online video platforms, such as Netflix, Amazon Prime Video, YouTube, and Disney+, and the consumption rate of online video content. For instance, in March 2020, Netflix registered an increase of more than 50% in the number of first-time installations of its mobile application in Italy and more than 30% in Spain.

In the education sector, the e-learning business has recorded notable business growth in recent times, thanks to stringent lockdown policies of governments globally compelling schools and colleges to conduct classes online. The ongoing lockdown has also attracted several working professionals to enroll in online learning programs to enhance their skills and stay relevant in their respective industries. For instance, in March 2020, LinkedIn recorded a 130% surge in total memberships over its online learning platform and a 26% increase in its total ad revenue.

Component Insights

Based on component, the solution segment accounted for the largest revenue share of 53.8% in 2020. This is attributed to the surging demand for subscription-based video content over the OTT platform, coupled with a continuous rise in demand for live streaming video platforms. In addition, the availability of low- and free-of-cost video hosting platforms and monetization features, such as running ads between videos, are anticipated to fuel the growth of the solution segment over the forecast period. The segment is expected to register a 15.7% CAGR over the forecast period.

The service segment is expected to demonstrate significant growth over the forecast period. This can be attributed to the increasing demand for professional and managed services for video streaming platforms. With the rise of cloud-based video content, data security threats are also increasing. To counter these threats, enterprise-managed services provide cloud security solutions that enable users to protect their websites, applications, and cloud data centers against a multitude of cyberattacks. 

Type Insights

The video processing segment accounted for the largest revenue share of 38.6% in 2020. Video processing platforms provide features such as efficient IP conversion, high-density transcoding, adaptive bitrate packaging, encryption, and streaming into a modular and visualized solution. These solutions give broadcasters a cost-efficient way to provide online video solutions, both on the live streaming as well as on the video-on-demand platform. Several video processing platforms in the market also deliver personalized video experiences based on aspects such as website behavior, geolocation, and demographics, or hyper-personalized videos by including details such as preference settings and selection of multiple languages.

In 2020, the video management segment accounted for the second-largest share in the online video platform market in terms of revenue. The rising popularity of video management platforms can be attributed to features such as optimized search functionality, which eases video indexing while handling large size video files. However, the video analytics segment is expected to register the highest CAGR during the forecast year. The growth of video analytics platforms can be attributed to the continuous advancements in video reporting structures such as video consumption patterns, geographical reach, campaign engagement, and a comprehensive view of ROI.

Streaming Type Insights

The video-on-demand segment accounted for the largest revenue share of over 76.9% of the total market revenue in 2020. The growth can be attributed to the easy accessibility of videos over the cloud, which gives freedom to stream videos in real-time from any location. Another factor contributing to the growth of the video-on-demand space is the chance to optimize revenue from ads by delivering more relevant ad copy as per user interest. Publishers are streaming dynamic ads based on the users' past keyword searches to execute the strategy.

Live video streaming is becoming increasingly popular as a growing number of sports streaming events with customized chat room features are attracting more subscribers. For instance, in the 2020Indian Premier League, the thirteenth season of the Twenty20 cricket (T20) league, Disney + Hotstar has enabled spectators to join a virtual community where they can watch matches together while using an interactive emoji stream. In addition, the increasing number of users over live video game streaming platforms, such as Twitch, HitBox, Beam, and Azubu, are fueling the growth of the segment. Gaming platform vendors are using this trend to expand their revenue sources such as ad-based streaming, paid subscriptions, and the sales of badges.

End-user Insights

In 2020, the media and entertainment segment held the highest market share of over 37.8%. The segment is expected to retain its dominance over the forecast period. The segment has recorded significant growth due to a surge in internet connectivity on mobile phones and increased investments across the globe in improving the OTT infrastructure. Furthermore, the rise in investments in live streaming sports events is expected to play an important role in developing the media & entertainment industry.

Education emerged as the second-largest end-user segment in terms of revenue in 2020. The segment is also expected to register the highest CAGR over the forecast period. With the introduction of advanced learning analytics dashboards over e-learning platforms, keeping track of learning progress and live interaction has become much easier. The increased availability of such advanced analytics features is expected to work well for the adoption of e-learning platforms globally in the next few years.

Regional Insights

North America accounted for the largest revenue share of 37.24% in 2020. The promising growth of the region is likely to continue in near future with the introduction of advanced 5G network technology, making online video platforms much quicker and more agile. Moreover, an increasing number of U.S. enterprises are using online video platforms to promote their products and services as a way of improving their brand identity. Meanwhile, the European region held the second-largest market share in 2019 and is expected to witness steady growth, thanks to the wide coverage of high-speed internet in the region. On the other hand, Asia Pacific is projected to demonstrate growth at the highest CAGR over the forecast period. The regional market is expected to benefit from the rising scope of video-on-demand and live streaming videos over online video platforms in the media & entertainment area as the penetration of the internet continues to increase across the region.

User-generated video content on free video hosting platforms such as YouTube is becoming highly popular on the online video platform. The Asia Pacific region is expected to be the biggest beneficiary of the trend as the region has the largest population globally, and the growing internet penetration across the region is fueling online video user numbers. In addition, the availability of live video streaming facilities on social media sites such as Facebook and LinkedIn is boosting the total number of users over online video platforms.

Key Companies & Market Share Insights

The key players that dominated the market in 2020 include Akamai Technologies Inc; Alphabet (YouTube); Brightcove Inc; Comcast Cable Communications Management, LLC; Endavo Media; Kaltura, Inc; Longtail Ad Solutions, Inc; and MediaMelon Inc. Vendors are focusing on increasing their customer base to gain a competitive edge in the market.

Vendors are focusing on initiatives such as collaborations, acquisitions and mergers, and partnerships. For instance, In April 2020, Akamai, a U.S.-based content delivery network company, announced a partnership with Verimatrix, a cyber-security company based in the U.S. The partnership is aimed to provide secure watermarking capabilities. Watermarking provides a session-based, user-specific tracking and source identification, which allows broadcasters to trace sources of pirated content in real-time. The solution would help broadcasting companies to prevent the unauthorized redistribution of content, especially the re-streaming of live sports events by unauthorized broadcasters. Some of the prominent players operating in the global online platform market are:

• Akamai Technologies

• Brightcove Inc.

• Comcast Cable Communications Management, LLC

• Endavo Media.

• Frame.io, Inc.

• Kaltura, Inc.

• Limelight Networks

• Longtail Ad Solutions, Inc. (JW PLAYER)

• MediaMelon Inc.

• Ooyala Inc. (Telstra)

• Panopto

• SpotX, Inc.

• Wistia Inc. Inc.

Online Video Platform Market Report Scope

Segments Covered in the Report

This report provides forecasts for revenue growth at the global, regional, and country levels and an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global online video platform market report based on component, type, streaming type, end-user, and region:

• Component Outlook (Revenue, USD Million, 2018 - 2028)

  • Solution

  • Services

• Type Outlook (Revenue, USD Million, 2018 - 2028)

  • Video Processing

  • Video Management

  • Video Distribution

  • Video Analytics

  • Others

• Streaming Type Outlook (Revenue, USD Million, 2018 - 2028)

  • Live Streaming Type

  • Video on Demand

• End-user Outlook (Revenue, USD Million, 2018 - 2028)

  • Media & Entertainment

  • BFSI

  • Retail

  • Education

  • IT and Telecom

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • South America

    • Brazil

  • Middle East and Africa (MEA)