Next Generation Video Codec in Australia Trends and Forecast
The future of the next generation video codec market in Australia looks promising with opportunities in the mobile phone, computer, and TV markets. The global next generation video codec market is expected to reach an estimated $7.9 billion by 2031 with a CAGR of 22.1% from 2025 to 2031. The next generation video codec market in Australia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the growing demand for better video experience, increasing mobile video consumption, and the proliferation of video content across platforms.
• Lucintel forecasts that, within the video codecs type category, the HEVC segment will remain the largest segment over the forecast period due to cutting the necessary bitrate in half while maintaining similar image quality, but at the cost of more processing complexity.
• Within the application category, mobile phone is expected to witness the highest growth.
Emerging Trends in the Next Generation Video Codec Market in Australia
Thenext generation video codec market in Australia is shaped by the increasing demand for quality video streaming, broadcasting, and video conferencing. This has led to the rapid evolution of the next generation video codec market, with the emergence of new technologies and compression algorithms. These algorithms facilitate improved video compression, lower latency, and higher video quality. The need for efficient video codecs in sectors such as media, entertainment, telecommunications, and healthcare is growing rapidly. Advanced codecs are opening new growth frontiers for video technology in Australia, increasing its market competitiveness. These trends will further enhance high-quality, scalable video consumption experiences.
• AV1 Codec Adoption: In Australia, the open-source video codec AV1 is rapidly increasing in usage due to its support for 4K and 8K video streaming. Along with this, its compression efficiency makes it easy to use. Like other codecs, AV1 also faces competition, but with its superior compression and unbounded streaming capabilities, it is far more efficient than VP9 and HEVC. YouTube and Netflix users have already witnessed these relative improvements on their screens. The adoption of AV1 by these streaming platforms portrays the legitimization of lower-cost video delivery methods.
• Integration of 5G and Video Streaming: The 5G network rollout in Australia is enhancing video streaming capabilities by providing faster and more reliable network connectivity, fueling the need for next-gen video codecs. 5G technology offers higher data rates and lower latency, resulting in better video streaming experiences with high buffering resolution-free content. Consequently, new VVC (Versatile Video Coding) codecs optimized for 5G networks are becoming more prevalent. These codecs are developed to improve the user experience by efficiently processing high-quality video streams and maximizing exposure to cutting-edge video content technologies.
• Encoder Development for Video Communication: The rise of remote work and hosting online events in Australia has significantly increased the demand for real-time video encoding. New HEVC, AV1, and other next-gen video codecs are facilitating synchronous low-latency, high-quality, and high-bandwidth video conferencing. With these codecs, businesses and individuals can conduct high-volume, disruption-free video calls without worrying about interruptions. To keep remote workers productive and ensure that online events and meetings are clear and immersive, real-time encoding is essential, which is accelerating the adoption of advanced codecs in the corporate world.
• An Uptrend in Focus on Low-Latency Streaming: The rise of eSports, online gaming, and live broadcasting of sports in Australia has increased the demand for low-latency video streaming. New video streaming codecs are being developed to achieve low latency while maintaining high-quality video without buffering during lags and real-time engagements. For example, gaming and streaming platforms are now starting to implement low-latency codecs, including H.265/HEVC and AV1. This provides a better user experience by enabling instant reactions as viewers watch a game or sporting event. Such features give platforms focusing on sports and gaming an edge, placing them above competitors who offer delayed content in such rapid conditions.
• Video Encoding and Processing in the Cloudz: With the high demand for video content delivery, the reliance on cloud infrastructure is rapidly increasing, bringing forth the need for cloud-encoded video content. New-generation codecs make it possible to process and compress video content in the cloud, reducing expenses and increasing scalability. Cloud video encoding allows Australian corporations to distribute high-quality video content to a global audience without heavy on-site infrastructure. This is especially beneficial for media and content-producing companies, as it simplifies video processing tasks with increased efficiency and effective content delivery through remote servers.
The new developments in the next generation video codec industry in Australia suggest that there will be more cost-effective and high-quality video experiences in the future. The application of AV1, 5G integration, conference encoding, low-latency streaming, and cloud solutions are all changing the industry. These methods not only enhance the quality of video but also improve user engagement across many sectors. The video codec industry in Australia is poised for growth with these innovations, as long as these technologies continue to evolve.
Recent Developments in the Next Generation Video Codec Market in Australia
The next generation video codec industry in Australia has undergone significant changes due to technological progress and growth in consumer demand. With an increased need for high-quality videos, particularly in entertainment, telecommunications, and business, next-gen codecs have become crucial for video delivery. Many of these developments stem from advancements in the nation’s infrastructure, such as 5G, and the growing dependency on cloud computing for video content processing. These phenomena are changing the way Australians create, distribute, and consume video content.
• AV1 Codec Adoption for Streaming Platforms: For media companies in Australia, adopting the AV1 codec is making it easier to achieve better quality content while lowering data consumption. AV1 has superior compression, which helps high-resolution video streaming services, including 4K and 8K. With the adoption of AV1 by major streaming services, it is likely to become the standard codec for next generation streaming. AV1’s support for high-quality video streams makes it vital for delivering online videos effectively, which increases the chances of improved content consumption in Australia.
• Cloud Video Encoding for Scalability: Next-generation video codecs are now being implemented in cloud-based encoding solutions in Australia due to the ongoing trend of cloud computing. This helps eliminate major capital costs associated with infrastructure investment for Australian firms looking to expand their video processing activities. For video content, cloud-based encoding allows for easier and faster processing and quicker delivery of video content. This will reduce the operational complexity for media providers and greatly increase the efficiency and speed with which video content can be managed, distributed, and delivered.
• Video Quality Improvement Due to 5G Deployment: The 5G rollout in Australia is impacting the video codec industry by enabling quicker video upload speeds, improved video and audio quality, and reduced latency. 5G provides sufficient bandwidth for high-definition video streaming, which requires advanced codecs such as AV1 and HEVC. These codecs are designed to deliver content in the best possible quality within bandwidth-constrained conditions. By supporting 5G, the user experience on mobile video streaming, gaming, and consumption of new video technologies is significantly improved.
• Video Collaboration Tools: The growing interest in video conferencing and remote collaboration in Australia has spurred the growth of next generation video codecs. As businesses become more reliant on video communication, codecs like HEVC and AV1 are improving video clarity, even with restricted bandwidth usage. These codecs are designed to support virtual meetings and remote work, reducing buffering and improving efficiency and productivity. The shift toward hybrid working arrangements in Australia is increasing the demand for high-quality video communication technologies, making this region more vital for seamless digital interactions.
• Instant Streaming Solutions for Gamers: Next-gen video codecs are being adopted by the gaming sector in Australia in response to the demand for low-latency streaming. Gamers now expect to experience online gaming and game streaming in real-time without any restrictions. Codecs are being optimized for low-latency to ensure seamless gameplay and interaction. This shift is also significant for eSports, live-streamed gaming, and other interactive events, where even a slight delay can reduce engagement. Low latency in high-quality images is a new concept that these codecs are introducing to video gaming in Australia.
Australian market updates on the next generation video codec industry highlight the importance of technological advancements that are changing the video delivery landscape. 5G, cloud encoding, AV1 adoption, and the need for low latency are all transforming the video landscape across various sectors. These advancements not only enhance video quality but also enable scalability, increase user engagement, and reduce response times. Next-gen video codecs will remain crucial for the continued advancement of the Australian streaming and communication industries as the demand for higher-quality and higher-volume content grows.
Strategic Growth Opportunities for Next Generation Video Codec Market in Australia
The advancing demand for high-quality video streaming, conferencing, and gaming solutions is boosting Australia’s next generation video codec market. To meet this growing demand, adopting next-gen video codecs allows for efficient content delivery, improved video quality, and high compression rates. Advancing technology is predicted to create several applications that will help service providers and businesses meet their consumers’ expectations and strategically grow their services.
• The Expansion of 5G Networks: The expansion of 5G networks in Australia presents a great opportunity to advance next-gen video codecs. The 5G network is designed to provide high speeds with reduced latency, enabling seamless delivery of high-quality video content. AV1 and VVC next-gen codecs are well-suited to the 5G network due to their high bandwidth and low latency characteristics. Media and entertainment businesses will be able to offer better streaming services, leading to greater customer satisfaction and a larger reach among mobile users.
• Video Streaming Platforms: High-definition (HD) and ultra-high-definition (UHD) video content has spurred the adoption of advanced video codecs for streaming services in Australia. The VVC, HEVC, and AV1 codecs enable greater compression rates and efficiency, making it easier and less expensive to stream 4K and 8K video alongside HD or UHD content. More and more local streaming platforms, alongside Netflix and YouTube, are adopting these codecs to achieve better video quality and user experiences. As a result, streaming service providers will benefit from the MPEG improvements in video quality and delivery, resulting in more efficient content delivery and lower streaming costs.
• Cloud-Based Video Solutions: The Australian market’s investment in cloud infrastructure for video coding has accelerated the growth of next generation video codecs. Cloud-powered video services allow companies to reach wider audiences without heavily investing in on-premise infrastructure. At the same time, companies can take advantage of affordable resources by using next-gen cloud-optimized codecs like VVC and AV1 to increase profitability, reduce operational costs, and handle high-volume video processing demands more efficiently. Such shifts will improve performance in media, entertainment, and even online education by providing better video distribution and streaming quality.
• Video Conferencing and Remote Work: Remote work and video conferencing gained much-needed traction in Australia during the COVID-19 pandemic. This opened up new avenues for video communication and created a demand for novel solutions. AV1 and HEVC, next generation video codecs, are enhancing video call experiences by improving video quality and lowering latency, even at low bandwidths. This expansion opportunity is crucial for capturing growth in the corporate world, education, and telemedicine, where video communication is the primary means of collaboration and remote service delivery. New codecs will increase productivity, minimize interruptions, and improve the overall user experience.
• Online Gaming and eSports: The growth of online gaming and eSports in Australia has increased the demand for lower latency and more resilient streaming video services. Next-generation video codecs are meeting this need by optimizing compression to enable low-resolution video with high frame rates. This will enhance the gaming experience by enabling faster and smoother gameplay and streaming. eSports and live gaming streams will also benefit from better immersion and interactivity for the audience. This marks the beginning of advancements in gaming and codec technology innovation.
The next generation video codec market in Australia has expanded due to the emergence of 5G networks, video streaming platforms, and cloud computing, which began as technological advances and have become opportunities in their own right. Next-generation video codecs are becoming more sophisticated, enabling service providers to deliver superior audio, video, and gaming services at lower latencies. They also enable seamless communication in the corporate sector. The adoption of next-gen codecs allows for more efficient and cost-effective video delivery while meeting the soaring demand for high-definition video content, ensuring competitiveness in the market.
Next Generation Video Codec Market in Australia Driver and Challenges
The Australian next generation video codec market is directly influenced by drivers and challenges related to the adoption and implementation of new video technologies. Key drivers include the advancement of network systems, the increasing customer base, and the need for more efficient video compression. On the other hand, success in this market requires overcoming challenges such as regulatory restrictions, market segmentation, and technological barriers. Understanding these drivers is essential for emerging businesses to make informed decisions about adopting new technologies.
The factors responsible for driving the next generation video codec market in Australia include:
• Advancement of Technology: The Australian market is shaped by new video codecs such as AV1, VVC, and HEVC. These innovative codecs make streaming and content delivery easier by providing better compression and high-quality video. They also allow for the easy consumption of high-resolution video, like 4K and 8K. As new technologies continue to develop, there will be more opportunities for businesses to reduce expenses and improve the user experience, while transforming the video delivery market.
• Growing Opportunities for Video Content: High-definition video content is in high demand, particularly in gaming, telemedicine, and education industries that rely heavily on audience engagement. The rise of streaming services and consumers embracing 4K/8K video fuels the need for next-gen video codecs in Australia. The demand for high-quality video content and advanced streaming codecs creates more market opportunities for content providers, expanding Australia’s growth potential.
• Expansion of 5G Networks: The growth of 5G networks in Australia is one of the major drivers behind the adoption of next generation video codecs. 5G provides higher speeds and lower latency, enabling high-quality video streaming, gaming, and video conferencing. Next-generation video codecs are developed to leverage 5G infrastructure for more efficient video data transmission. This upgrade accelerates the transition to more engaging video activities like live streaming, AR, VR, and other interactive video formats for both creators and viewers.
• Adoption of Cloud Computing: The growing trend of utilizing cloud services for video encoding and processing is propelling the development of next-gen video codecs. Cloud video services allow organizations to scale their video content delivery globally without incurring expensive upfront hardware costs. Adopting advanced codecs in a cloud-first environment makes it easier for businesses to process, manipulate, and distribute video content. This migration is particularly advantageous for traditional media, content-providing agencies, and e-learning service providers who need an efficient and flexible approach to video distribution.
Challenges in the next generation video codec market in Australia are:
• The Australian regulatory environment presents unique adoption challenges. Proprietary and open-source codecs, such as the Moving Picture Experts Group (MPEG) and Federal Communications Commission (FCC), can significantly impact the adoption of proprietary codecs. Moreover, complying with guidelines set by industry leaders such as MPEG and FCC will affect business for proprietary codecs. However, default proprietary codecs are usually more expensive, which can make them less popular. On the other hand, open-source codecs like AV1 are gaining popularity because they offer a more affordable alternative. The ease of adapting AV1, coupled with its competition, is boosting the codec industry.
• The Australian NEXTGEN VIDEO CODEC market faces fragmentation, as there are many competing codecs and platforms vying for dominance. One major issue with standards and interoperability is that different industries and use cases may require different codecs. Various sectors may choose to prioritize AV1 over HEVC or even the newer VVC. Businesses that want to adopt AV1 may find it inefficient or unsuitable in certain situations. At first, this fragmentation can reduce efficiency and hinder cross-platform compatibility. However, third-party companies will emerge to provide industry-agnostic and user-friendly codecs, which will ultimately lower costs and improve responsiveness.
• Technological Limitations: As with any new development, next-gen video codecs hold promising capabilities, but limitations such as insufficient hardware and processing power could hinder their adoption. Older devices, which make up a significant portion of the market, will further restrict the effectiveness of these codecs. Additionally, the vast amount of processing power required to encode and decode video presents a major challenge for companies that do not have the necessary infrastructure. To deploy next-gen video codecs effectively in Australia, these technological barriers must be addressed to ensure smooth accessibility and proper use.
In Australia, competition within the next generation video codec market depends on evaluating opportunities and threats, which are critical in determining market factors. While next-gen codecs offer technological improvements, high-performing 5G networks, and increasing expectations for bandwidth and high-quality video resolutions, challenges such as regulatory policies, technological fragmentation, and market constraints may prove problematic for continued growth. A thorough understanding of these factors will help companies strategize and improve their market positioning by developing sophisticated solutions to overcome obstacles and boost market participation.
List of Next Generation Video Codec Market in Australia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, next generation video codec companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the next generation video codec companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Next Generation Video Codec Market in Australia by Segment
The study includes a forecast for the next generation video codec market in Australia by video codecs type and application.
Next Generation Video Codec Market in Australia by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in Australia by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in Australia
Market Size Estimates: Next generation video codec in Australia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Next generation video codec in Australia market size by video codecs type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different video codecs type and application for the next generation video codec in Australia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in Australia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
If you are looking to expand your business in this or adjacent markets, then contact us. We have done hundreds of strategic consulting projects in market entry, opportunity screening, due diligence, supply chain analysis, M & A, and more.
FAQ
Q1. What are the major drivers influencing the growth of the next generation video codec market in Australia?
Answer: The major drivers for this market are growing demand for better video experience, increasing mobile video consumption, and proliferation of video content across platforms.
Q2. What are the major segments for next generation video codec market in Australia?
Answer: The future of the next generation video codec market in Australia looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in Australia will be the largest in future?
Answer: Lucintel forecasts that HEVC segment will remain the largest segment over the forecast period due to cuts the necessary bitrate in half while maintaining similar image quality, but at the cost of more processing complexity.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the next generation video codec market in Australia by video codecs type (AVC, AV1, HEVC, VP9, and VVC), and application (mobile phone, computer, TV, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Next Generation Video Codec Market in Australia, Next Generation Video Codec Market in Australia Size, Next Generation Video Codec Market in Australia Growth, Next Generation Video Codec Market in Australia Analysis, Next Generation Video Codec Market in Australia Report, Next Generation Video Codec Market in Australia Share, Next Generation Video Codec Market in Australia Trends, Next Generation Video Codec Market in Australia Forecast, Next Generation Video Codec Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.