Next Generation Video Codecs

Global Next Generation Video Codecs Market to Reach US$7.9 Billion by 2030

The global market for Next Generation Video Codecs estimated at US$2.6 Billion in the year 2024, is expected to reach US$7.9 Billion by 2030, growing at a CAGR of 20.4% over the analysis period 2024-2030. AVC, one of the segments analyzed in the report, is expected to record a 18.4% CAGR and reach US$2.6 Billion by the end of the analysis period. Growth in the AV1 segment is estimated at 20.9% CAGR over the analysis period.

The U.S. Market is Estimated at US$676.6 Million While China is Forecast to Grow at 19.5% CAGR

The Next Generation Video Codecs market in the U.S. is estimated at US$676.6 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$1.2 Billion by the year 2030 trailing a CAGR of 19.5% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 18.3% and 17.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 14.3% CAGR.

Global Next Generation Video Codecs Market – Key Trends & Drivers Summarized

Why Are Next Generation Video Codecs Essential to the Future of Media Delivery?

Next generation video codecs are transforming how video content is compressed, transmitted, and consumed across devices and platforms. As high-resolution content (4K, 8K, HDR) becomes the norm in broadcasting, streaming, gaming, and teleconferencing, traditional codecs like AVC/H.264 are struggling to deliver efficient compression at acceptable bandwidths. Next-gen codecs such as HEVC (H.265), AV1, VVC (H.266), and EVC offer significantly better compression efficiency, reducing data sizes by 30–50% without sacrificing visual quality.

The rising demand for ultra-HD content, live streaming, video conferencing, and immersive media like AR/VR is accelerating the need for more advanced, bandwidth-efficient codecs. These new standards enable smoother streaming on limited bandwidth, faster load times, and reduced storage costs—making them crucial for content delivery networks (CDNs), OTT platforms, and mobile operators. Their adoption is further reinforced by the growth of remote work, online education, and real-time video-driven applications in both consumer and enterprise sectors.

What Technological Innovations Are Enhancing Codec Efficiency and Adoption?

Technological improvements in video encoding algorithms, AI-based content analysis, and hardware acceleration are propelling the adoption of next-gen codecs. VVC and AV1 incorporate advanced intra-frame prediction, block partitioning, and motion compensation techniques that allow for higher compression ratios while maintaining detail and reducing artifacts. Hardware support in GPUs, mobile SoCs, and smart TVs is also maturing, ensuring smooth playback and low power consumption even at high resolutions.

AI and machine learning are being employed to optimize encoding pipelines, enabling adaptive bitrate streaming that dynamically adjusts quality based on network conditions and device capabilities. Cloud-based transcoding solutions are further enabling real-time video processing for large-scale applications such as surveillance, gaming, and content distribution. Open-source development, royalty-free licensing (as with AV1), and cross-industry collaboration are driving global momentum toward standardizing and commercializing next-gen codecs at scale.

What’s Driving the Growth of the Next Generation Video Codecs Market?

The growth in the next generation video codecs market is driven by factors such as exponential video traffic growth, rising adoption of UHD and immersive formats, and the need to minimize transmission costs over congested networks. As video becomes the dominant form of internet traffic, next-gen codecs are essential to maintain performance, reduce buffering, and improve user experience across geographies. Increasing support from chipset makers and video platform providers is accelerating adoption in both consumer electronics and professional broadcasting systems.

SCOPE OF STUDY:

The report analyzes the Next Generation Video Codecs market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Video Codecs Type (AVC, AV1, HEVC, VP9, VVC); Application (Mobile Phone, Computer, TV, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 42 Featured) -
  • Amazon.com, Inc.
  • Apple Inc.
  • Axis Communications AB
  • Bitmovin, Inc.
  • Cisco Systems, Inc.
  • CommScope Inc.
  • Dahua Technology Co., Ltd.
  • Flir Systems, Inc.
  • Google LLC
  • Harmonic Inc.
  • Hikvision Digital Technology Co., Ltd.
  • Intel Corporation
  • Matrox Electronic Systems Ltd.
  • Motorola Solutions, Inc.
  • Netflix, Inc.
  • NVIDIA Corporation
  • Sumavision Technologies Co., Ltd.
  • Tencent Holdings Ltd.
  • VITEC
  • Wilus Group
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I. METHODOLOGY
II. EXECUTIVE SUMMARY
1. MARKET OVERVIEW
Influencer Market Insights
World Market Trajectories
Tariff Impact on Global Supply Chain Patterns
Next Generation Video Codecs – Global Key Competitors Percentage Market Share in 2025 (E)
Competitive Market Presence - Strong/Active/Niche/Trivial for Players Worldwide in 2025 (E)
2. FOCUS ON SELECT PLAYERS
3. MARKET TRENDS & DRIVERS
Rising Demand for 4K, 8K, and HDR Content Drives Adoption of High-Efficiency Video Compression Standards
OEM Innovation in AI-Powered Encoding Accelerates Development of Real-Time, Low-Bitrate Codecs
Surge in Streaming Video Consumption Fuels Shift to Bandwidth-Efficient Codecs Like AV1, VVC, and EVC
Push for Faster Content Delivery and Reduced CDN Costs Strengthens Case for Next-Gen Codec Integration
OEM Collaboration With Streaming Platforms and Chipmakers Supports Ecosystem Alignment for Codec Rollouts
Expansion of Cloud Gaming and XR Services Spurs Demand for Ultra-Low Latency Codec Solutions
Rising Use of Video in Social Media, E-Learning, and Corporate Communications Boosts Encoding Efficiency Needs
Growth of 5G Networks Enhances Viability of High-Resolution, Mobile-Optimized Video Codecs
OEM Development of Hardware Accelerators for VVC, AV1, and LCEVC Improves Decoding Efficiency Across Devices
Increased Smart TV and OTT Device Penetration Expands Demand for Broad Codec Compatibility
OEM Support for Real-Time Video Collaboration Tools Accelerates Need for Dynamic Bandwidth-Responsive Codecs
4. GLOBAL MARKET PERSPECTIVE
TABLE 1: World Next Generation Video Codecs Market Analysis of Annual Sales in US$ Million for Years 2015 through 2030
TABLE 2: World Recent Past, Current & Future Analysis for Next Generation Video Codecs by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 3: World 6-Year Perspective for Next Generation Video Codecs by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets for Years 2025 & 2030
TABLE 4: World Recent Past, Current & Future Analysis for AVC by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 5: World 6-Year Perspective for AVC by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 6: World Recent Past, Current & Future Analysis for AV1 by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 7: World 6-Year Perspective for AV1 by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 8: World Recent Past, Current & Future Analysis for HEVC by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 9: World 6-Year Perspective for HEVC by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 10: World Recent Past, Current & Future Analysis for VP9 by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 11: World 6-Year Perspective for VP9 by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 12: World Recent Past, Current & Future Analysis for VVC by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 13: World 6-Year Perspective for VVC by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 14: World Recent Past, Current & Future Analysis for Mobile Phone by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 15: World 6-Year Perspective for Mobile Phone by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 16: World Recent Past, Current & Future Analysis for Computer by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 17: World 6-Year Perspective for Computer by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 18: World Recent Past, Current & Future Analysis for TV by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 19: World 6-Year Perspective for TV by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
TABLE 20: World Recent Past, Current & Future Analysis for Other Applications by Geographic Region - USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 21: World 6-Year Perspective for Other Applications by Geographic Region - Percentage Breakdown of Value Sales for USA, Canada, Japan, China, Europe, Asia-Pacific and Rest of World for Years 2025 & 2030
III. MARKET ANALYSIS
UNITED STATES
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United States for 2025 (E)
TABLE 22: USA Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 23: USA 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 24: USA Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 25: USA 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
CANADA
TABLE 26: Canada Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 27: Canada 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 28: Canada Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 29: Canada 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
JAPAN
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Japan for 2025 (E)
TABLE 30: Japan Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 31: Japan 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 32: Japan Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 33: Japan 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
CHINA
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in China for 2025 (E)
TABLE 34: China Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 35: China 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 36: China Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 37: China 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
EUROPE
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Europe for 2025 (E)
TABLE 38: Europe Recent Past, Current & Future Analysis for Next Generation Video Codecs by Geographic Region - France, Germany, Italy, UK and Rest of Europe Markets - Independent Analysis of Annual Sales in US$ Million for Years 2024 through 2030 and % CAGR
TABLE 39: Europe 6-Year Perspective for Next Generation Video Codecs by Geographic Region - Percentage Breakdown of Value Sales for France, Germany, Italy, UK and Rest of Europe Markets for Years 2025 & 2030
TABLE 40: Europe Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 41: Europe 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 42: Europe Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 43: Europe 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
FRANCE
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in France for 2025 (E)
TABLE 44: France Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 45: France 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 46: France Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 47: France 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
GERMANY
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Germany for 2025 (E)
TABLE 48: Germany Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 49: Germany 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 50: Germany Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 51: Germany 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
ITALY
TABLE 52: Italy Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 53: Italy 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 54: Italy Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 55: Italy 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
UNITED KINGDOM
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in the United Kingdom for 2025 (E)
TABLE 56: UK Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 57: UK 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 58: UK Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 59: UK 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
REST OF EUROPE
TABLE 60: Rest of Europe Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 61: Rest of Europe 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 62: Rest of Europe Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 63: Rest of Europe 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
ASIA-PACIFIC
Next Generation Video Codecs Market Presence - Strong/Active/Niche/Trivial - Key Competitors in Asia-Pacific for 2025 (E)
TABLE 64: Asia-Pacific Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 65: Asia-Pacific 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 66: Asia-Pacific Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 67: Asia-Pacific 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
REST OF WORLD
TABLE 68: Rest of World Recent Past, Current & Future Analysis for Next Generation Video Codecs by Video Codecs Type - AVC, AV1, HEVC, VP9 and VVC - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 69: Rest of World 6-Year Perspective for Next Generation Video Codecs by Video Codecs Type - Percentage Breakdown of Value Sales for AVC, AV1, HEVC, VP9 and VVC for the Years 2025 & 2030
TABLE 70: Rest of World Recent Past, Current & Future Analysis for Next Generation Video Codecs by Application - Mobile Phone, Computer, TV and Other Applications - Independent Analysis of Annual Sales in US$ Million for the Years 2024 through 2030 and % CAGR
TABLE 71: Rest of World 6-Year Perspective for Next Generation Video Codecs by Application - Percentage Breakdown of Value Sales for Mobile Phone, Computer, TV and Other Applications for the Years 2025 & 2030
IV. COMPETITION

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