Video infrastructure set to rocket 37% despite virtualisation | OTT | News | Rapid TV News
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Video infrastructure markets will continue to grow at a relatively healthy pace of 37% over the next five years, despite the impact of virtualisation separating hardware and software requirements.

According to ABI Research, broadcast pre- and post-production, video encoding, and video-on-demand (VOD) and CDN hardware will all continue to expand.

"Broadcasters and operators virtualising their workflow are likely to buy classic IT servers, while continuing to rely on video specialists for their application and software requirements," said ABI research practice director Sam Rosen. "In theory, this means that video vendors are supplying less of the total solution; however, rising overall business complexity of areas, including ad workflows and over-the-top delivery, are offsetting this downward pressure on revenues."

The encoder and transcoder market in particular represents the brightest spot in the video industry. Growth in this sub-market is at 9% annually, compared to 6% in the broadcast pre- and post-production market, and between 4% to 5% in the satellite and VOD/CDN markets.

"Both traditional drivers — including increased channel counts in many markets together with encoding density to mitigate spectrum considerations — as well as new applications, including multiscreen currently and truly mobile video services in the next three to five years, also contribute," said research analyst Eric Abbruzzese.