Video software revenue to exceed 9bn dollars by 2021
The video software market is expected to exceed $9 billion in revenue by 2021, according to new research by IHS Markit.
The switch from hardware-based technology to cloud implementations is a key driver for the $3 billion in revenue growth over the next five years, according to the new Video Software, Security, and Analytics Intelligence Service from IHS Technology.
"Taken together, these two forces have created a market where value is shifting towards the frontend," said Cecilia Zhu, analyst at IHS Technology. "A superior user-experience has become fundamental to securing increased consumer spend."
Globally, content security accounts for 32% of the digital video software market. "While demand for robust security solutions is unlikely to deteriorate, particularly in the presence of high-value UHD and HDR content, the segment is effectively saturated," Zhu said.
By contrast, Online Video Platform solutions will continue to generate large, year-on-year returns through 2021. "The necessity of online distribution backed by a platform pre-integrated across a rich ecosystem of partners, means demand for OVP solutions will rise over the next five years," Zhu said.
Cisco has a 15% share of the video software segment, the largest globally. "The company has proven adept at transitioning into the video space, and at using its longstanding presence in core, metro, and access-network infrastructure to cross and upsell video-specific software," Zhu said.