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Media Industry Upgrades from HD to 4K/HDR and SDI to IP Will Drive Growth in a Mature Market
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The media and entertainment industry has witnessed two waves of transitions that have profoundly impacted and shaped its evolution in recent decades – the shift from analog to digital and the move from SD to HD content. Both transitions were highly consequential to vendors in this space due to the billions of dollars spent globally over the transition period by Cable MSOs, telcos and broadcasters. However, those transitions are largely complete and have resulted in lowered demand in the last 2-3 years. As the media landscape continues its evolution, two other transitions have become critical to the future prospects of vendors in the video server market. Delivery of video over IP is a crucial capability for every player in the content ecosystem. The growing volume of 4K and HDR content is driving an upgrade cycle, especially in developed markets where associated hardware – like 4K Smart TVs and Blu-ray Players – are gaining traction with customers. The transition from SDI to IP is driving the broadcast market as the future of video workflow to delivery is going to be IP. The IP transition is already on the agenda of most broadcasters as demand for more efficient workflows goes up. Growth in the video server market has slowed down in the last 2-3 years with the integrated playout solutions cannibalizing the traditional video servers business to an extent. Price declines have also been a major contributing factor since the market has witnessed a 5-6% decline in prices on an average every year. Market concentration is on the rise in a fragmented space containing over 30 global vendors as the entrenched market leaders like Harmonic, Arris and Belden Grass Valley spend millions in M&A activity.
This market study covers the following:
Geographical Segmentation: The global market has been segmented into North America, Latin America (NALA), Asia-Pacific (APAC), and Europe, the Middle East, and Africa (EMEA).
The base year of the study is 2017, with forecasts running up to 2023. The research highlights key trends impacting the global video servers market and outlines future implications.
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