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Video is a push industry. It thrives when new algorithms to compress video more and deliver better video over available infrastructure are brought to market. HEVC is the next-generation successor to current standard AVC, but its adoption has been mired in licensing disputes and competition from open IT disciplines. There is a massive gap between devices that are capable of playing back HEVC and those that are enabled to do so. This gap is creating restraints for sale of video encoding/transcoding equipment as well. At the same time, there is slow-but-steady movement forward, particularly in the areas of 4K, next-generation broadcast, and HDR. With future roadmaps and product strategies for many classes of companies hinging heavily on video codec strategy, there is need for reliable and objective strategic direction around this new codec. The moving pieces of HEVC span consumption devices, streaming standards, encoding/decoding and licensing. This insight provides in-depth analysis of forces shaping the market. It compiles, in a single source, forecasts for all classes of video-enabled CE devices as well as all types of professional encoders and transcoders for media and entertainment applications. Competing options for next-generation video compression technology are placed in context, for both M&E and enterprise applications. Strategic recommendations for content business are provided. Finally, select vendors that stand out in the 2016-to-2018 timeframe are highlighted, on account of strong value proposition and consequent market leadership in unit sales and/or revenue.Key Questions This Insight Will Answer:• Is the market growing? How long will it continue to grow and at what rate?• What is the relationship of this technology to other competing options? Who will win?• What technical trends are shaping the marketplace today? What disruptions are on the horizon, and what implications does this have on future product strategy?• How should content companies plan to grow usage and profit? How should technology vendors enable content companies to do so?• What role are licensing pools and patent holders playing in propelling or holding back the market?This study is one in a series of full-length and topical research deliverables provided by Frost & Sullivan in the general area of video encoding and transcoding.
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