Video CODECs Market Size, Share, Growth, and Industry Analysis, By Type (H.264 & H.265, HEVC, and Others), By Application (Broadcast, Surveillance, and Others), Regional Insights and Forecast From 2025 To 2033

Last Updated: 26 June 2025
SKU ID: 18878366

Trending Insights

Report Icon 1

Global Leaders in Strategy and Innovation Rely on Our Expertise to Seize Growth Opportunities

Report Icon 2

Our Research is the Cornerstone of 1000 Firms to Stay in the Lead

Report Icon 3

1000 Top Companies Partner with Us to Explore Fresh Revenue Channels

VIDEO CODECS MARKET OVERVIEW

Global video codecs size was anticipated to be worth USD 2.3 million in 2024 and is expected to reach USD 3.42 million by 2033 at a CAGR of 4.5% during the forecast period.

Video codecs are essential tools for compressing and decompressing digital video content, allowing efficient storage, transmission, and playback of video files. They encode raw video data into a compressed format for storage or transmission and decode it back into its original form for playback or editing. Popular video codecs include H.264 (AVC), H.265 (HEVC), and VP9, each offering different levels of compression efficiency, quality, and compatibility. These codecs use various algorithms and techniques, such as predictive coding, motion compensation, and entropy coding, to reduce the size of video files while maintaining perceptual quality. The choice of codec depends on factors such as the intended use case, available bandwidth, device compatibility, and desirvideo quality.

Advancements in video codec technology continue to drive improvements in video quality, compression efficiency, and compatibility with a wide range of devices and platforms. Emerging codecs such as AV1 and VVC (Versatile Video Coding) aim to further enhance compression efficiency and support for high-resolution and immersive video formats. Additionally, the adoption of codec standards by industry organizations such as the ITU-T, ISO, and MPEG ensures interoperability and facilitates widespread deployment of video encoding and decoding solutions across different devices, software applications, and online platforms.

COVID-19 IMPACT

Market Growth Boosted by Pandemic due to Increased Emphasis on Bandwidth Efficiency

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

One notable impact of the pandemic on video codecs is the emphasis on bandwidth efficiency and optimization. With more people relying on internet-based services for work, education, and entertainment from home, there has been a greater need for video codecs that can deliver high-quality video streams while minimizing bandwidth consumption. This has led to a renewed focus on codec development and optimization to ensure smooth streaming experiences even under fluctuating network conditions.

Additionally, the pandemic has accelerated the adoption of new video codecs and technologies that offer improved compression efficiency and performance. Emerging codecs such as AV1 and VVC (Versatile Video Coding) have gained traction as they promise better compression ratios and support for higher resolutions and immersive video formats. The need for higher quality video streaming experiences, coupled with advancements in codec technology, has driven the adoption of these next-generation codecs by streaming platforms, device manufacturers, and content creators. The global video codecs market growth is anticipated to boost following the pandemic.

LATEST TRENDS

Low-Latency Video Codecs to Drive Market Growth

There is growing demand for low-latency video codecs to support real-time applications such as live streaming, video conferencing, and interactive gaming. Codec standards such as Low-Latency High-Efficiency Video Coding (LHVC) and the upcoming MPEG-5 Essential Video Coding (EVC) include features specifically designed to minimize encoding and decoding latency, ensuring smooth and responsive video streaming experiences for users. Versatile Video Coding (VVC), also known as H.266, is the latest standard in video compression technology, offering even higher compression efficiency than its predecessors.

VVC promises to deliver significant bitrate savings while maintaining high-quality video compression, making it well-suited for emerging video formats such as 4K, 8K, and immersive media. The adoption of VVC is expected to accelerate in the coming years as hardware support and codec optimization improve. With the increasing availability of high dynamic range (HDR) displays and content, video codecs are being optimized to support enhanced HDR and wide color gamut (WCG) reproduction. New codec features and profiles are being introduced to preserve HDR metadata, improve color accuracy, and ensure consistent playback across different devices and platforms. These advancements contribute to a more immersive and visually appealing viewing experience for audiences.

Global-Video-CODECs-Market-Share-By-Type,-2033

ask for customizationRequest a Free sample to learn more about this report

VIDEO CODECS MARKET SEGMENTATION

By Type

Based on type the global market can be categorized into H.264 & H.265, HEVC, and Others.

  • H.264 (AVC): H.264, also known as Advanced Video Coding (AVC), is a widely used video compression standard that offers efficient compression while maintaining good video quality. It is commonly used for streaming video over the internet, Blu-ray discs, and broadcast television due to its broad compatibility and relatively low computational requirements.
  • H.265 (HEVC): H.265, also known as High-Efficiency Video Coding (HEVC), is the successor to H.264 and offers significantly improved compression efficiency. HEVC can achieve up to 50% bitrate savings compared to H.264, making it ideal for high-resolution video formats such as 4K and 8K. However, HEVC requires more computational resources for encoding and decoding, limiting its adoption in some applications.

By Application

Based on application the global market can be categorized into Broadcast, Surveillance, and Others.

  • Broadcast: Broadcast refers to the distribution of audio or video content to a wide audience, typically through radio, television, or the internet. Broadcast media transmit content simultaneously to multiple recipients, allowing for mass communication and entertainment. It includes traditional over-the-air broadcasts as well as modern digital streaming platforms.
  • Surveillance: Surveillance involves the monitoring and observation of people, places, or activities for the purpose of security, safety, or information gathering. Surveillance systems use cameras, sensors, and other technologies to collect data and analyze behavior in various settings, including public spaces, private properties, and workplaces. It plays a crucial role in crime prevention, law enforcement, and public safety initiatives.

DRIVING FACTORS

Increasing Demand for High-Quality Video to Boost the Market

With the proliferation of high-resolution displays, streaming services, and immersive media experiences, there is a growing demand for video codecs that can efficiently deliver high-quality video content while minimizing bandwidth usage and storage requirements. The increasing diversity of devices used for consuming video content, including smartphones, tablets, smart TVs, gaming consoles, and set-top boxes, requires video codecs that are compatible with a wide range of hardware platforms and operating systems. Codec developers must ensure cross-platform support and optimization to deliver consistent video quality across different devices.

Real-Time Communication to Expand the Market

Video conferencing, telemedicine, remote work, and virtual events have become increasingly prevalent, driving the need for low-latency video codecs that can support real-time communication and collaboration. Codec developers are focusing on reducing encoding and decoding latency to enable smoother, more responsive video streaming experiences for users. The democratization of content creation and distribution platforms, including social media, user-generated content platforms, and online streaming services, has led to an explosion of video content creation. Video codecs play a critical role in facilitating the distribution of user-generated content while ensuring efficient storage, transmission, and playback across various platforms and devices.

RESTRAINING FACTOR

Intellectual Property and Licensing Costs to Potentially Impede Market Growth

Some video codecs, particularly proprietary codecs developed by commercial entities, may require licensing agreements or royalty payments for their use. High licensing costs can deter adoption, especially for open-source or non-commercial projects with limited resources. The computational complexity of encoding and decoding video content using advanced codecs may exceed the capabilities of certain hardware platforms, particularly low-power devices such as mobile phones, IoT devices, and embedded systems. Hardware limitations can constrain the adoption of codecs that require significant processing power or specialized hardware acceleration.

VIDEO CODECS MARKET REGIONAL INSIGHTS

North America Region Dominating the Market due to Consistent Developments in the Domain

The market is primarily segmented into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

North America has emerged as the most dominant region in the global video codecs market share due to several factors. Companies and research institutions in North America, have been pioneers in video codec development. Companies have made substantial contributions to the advancement of video codec technology. Additionally, standardization bodies have a strong presence in North America.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market through Innovation and Market Expansion

The video codecs market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of wardrobe options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features in cloth wardrobes, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Top Video Codecs Companies

  • Hikvision [China]
  • Cisco Systems, Inc [U.S.]
  • Dahua [China]
  • Axis Communications [Sweden]
  • Harmonic [U.S.]

INDUSTRIAL DEVELOPMENT

August 2023: Joint Collaborative Team on Video Coding (JCT-VC), a collaboration between the International Telecommunication Union (ITU-T) and the ISO/IEC Moving Picture Experts Group took significant strives ahead in the video codecs market. They recently developed H.264. H.264, also known as Advanced Video Coding (AVC), is a widely used video compression standard known for its efficient compression algorithm, which enables high-quality video streaming while minimizing bandwidth usage. It is commonly utilized in various applications such as online video streaming, digital television, Blu-ray discs, and video conferencing.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.

Video CODECs Market Report Scope & Segmentation

Attributes Details

Market Size Value In

US$ 2.3 Billion in 2024

Market Size Value By

US$ 3.42 Billion by 2033

Growth Rate

CAGR of 4.5% from 2025to2033

Forecast Period

2025-2033

Base Year

2024

Historical Data Available

Yes

Regional Scope

Global

Segments Covered

By Type

  • H.264 & H.265
  • HEVC
  • Others

By Application

  • Broadcast
  • Surveillance
  • Others

FAQs