By Infinium Global Research Aug, 2020
The Global Video on Demand Market is expected to grow at a CAGR of 15.25% between 2019 and 2025 in terms of value. The rapidly growing use of smartphones is the major driving factor for the VoD market. The growing use of mobile phones and increasing digital media consumption are adding fuel to the exploding growth of video on demand industry. The smartphone has been identified as a major factor for accelerated growth in consumers watching more hours of video content across different devices. Diversified benefits offered by the Video-on-Demand services are also driving the growth of the market. It offers several benefits as compared to traditional TV or broadcasting. It offers convenience, connectivity, low cost, and a wide variety of movies and TV shows. On the other side, the rising rate of consuming online video piracy is restraining the VoD market. The quality of pirated content has risen dramatically with instant access to new film releases, TV series, and live sports accessed on illicit streaming devices. Moreover, the advent of 5G to bring new opportunities for the video-on-demand market. 5G networks will provide better quality video on mobile devices and additional immersive experiences, among other benefits.
Geographically, Asia Pacific dominates the global VoD market as it holds 38% of the global market. Growing penetration of the internet and mobile devices is driving the growth of the market in this region. According to The International Telecommunication Union, more than 50% of the total internet user in the world live in the Asia Pacific. North America is the second-largest market for the global VoD market owing to the presence of major players in the market including Netflix, Inc, Amazon.com, Inc, Google LLC, and others. High-speed and uninterrupted internet connectivity drives the video on demand (VoD) market in North America.