Next Generation Video Codec in Italy Trends and Forecast
The future of the next generation video codec market in Italy 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 Italy 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 Italy
All efforts to increase the mobility of videos have compelled Italy to witness significant changes in the next generation video codec market. Advancements in digital OTT media, 5G services, and overall internet speed have accelerated these changes. The surge in demand for mobile video content and improved internet connectivity is further enhancing these shifts. Consequently, in the Italian market, novel and more efficient video compression technologies that enhance video quality while using minimal bandwidth are being embraced. This innovation significantly enhances content delivery and provides an unparalleled experience to consumers.
• Adoption of AV1 and HEVC for OTT Platforms: The adoption of AV1 and HEVC enables OTT platforms in Italy to deliver quality content in a near-seamless fashion. These next generation codecs provide enhanced compression efficiency, allowing for effortless consumption of HD and 4K content. As more viewers seek high-quality video content, AV1 and HEVC codecs enable streaming services to fulfill essential requirements. Their adoption ensures that streaming services can meet the expectations of high-quality video content that Italians are increasingly seeking, especially given the country’s focus on faster internet speeds.
• 5G’s Combination with Video Streaming Services: The rollout of 5G technology in Italy could greatly change the country’s video streaming services. Due to 5G’s high speed and extremely low latency, next-gen video codecs like AV1 and VVC will buffer less compared to older codecs. These mobile-optimized codecs will benefit users frequently on the go, especially in metropolitan areas where 5G coverage is extensive. The adoption of 5G in Italy will increase along with mobile video consumption, as fast networks combined with efficient codecs enable smoother video delivery.
• Increased Consumption of 4K and 8K Content: The Italian market is now more willing to purchase 4K and even 8K video content due to changing consumption patterns. There will be a need to capture this shift in demand, and AI-powered video codecs capable of sustaining high bandwidths while offering superior resolution need to be developed. HEVC and AV1 are examples of next-gen codecs that offer improved compression ratios, allowing Italian consumers to stream Hollywood blockbusters, sporting events, and binge-worthy shows in Ultra and High Definition quality. The growing trend toward premium content is a key driver for codec adoption in Italy.
• Cloud Services Utilizing Video Technology for Enterprise Solutions: Italian businesses are increasingly adopting cloud video solutions for communication, training, and content distribution. These services are powered by next generation codecs, which allow for efficient compression. If businesses use HEVC and AV1 codecs, they can easily stream high-quality video content without having to pay high bandwidth costs. As cloud video solutions become an integral part of corporate workflows and remote work, advanced codecs will be crucial in video delivery across multiple sectors of Italy’s economy. These codecs will enable affordability and mitigate video quality issues.
• Video Codec Adoption Regulation Impact: Legal changes in Italy are motivating the adoption of modern video codecs that allow for greater compression and improved content delivery. With the government and other regulatory bodies favoring new technology to make streaming videos more energy-efficient, energy consumption during these activities is of utmost concern. The shift toward more AV1 and VVC energy-efficient codecs meets not only sustainability targets for Italy’s technology ecosystem but also the rapidly increasing demand for high-quality video without excessive energy expenditure or bandwidth consumption.
The next generation video codec market in Italy is enhancing with the progression of the 5G network, the increase in demand for high-definition video content, and the adoption of new codecs like AV1 and HEVC. These changes are improving video streaming, cloud-based video solutions, and Over the Top (OTT) service offerings in Italy by improving video quality, optimizing bandwidth consumption, and providing a more environmentally friendly means of content distribution. While these phenomena are rising in the industry, the market will progressively become more vibrant, improving the video consumption experience for users and businesses in Italy.
Recent Developments in the Next Generation Video Codec Market in Italy
The next generation video codec market in Italy is witnessing rapid changes due to developments in video compression technologies, driven by the demand for quality streaming services and the expansion of digital content. The growth of 5G networks and the increasing popularity of OTT platforms have positively impacted the usage of these services, helping Italian consumers gain access to ultra-high-definition content while mitigating the costs incurred by service providers on data transmission.
• Delivery of Video Services with 5G Technology in Italy: Italy is starting to connect new towers for its 5G network, which is greatly changing the way video streaming and delivery services are provided through mobile and broadband networks. The 5G network’s low latency capacity paves the way for real-time interactions, which further facilitates 4K and 8K video streams without a hitch. Several next-gen technologies need to be adopted, especially AV1, as they focus on bandwidth optimization for rapid connections. As the infrastructure for 5G expands, more advanced codecs will need to be adopted to ensure high-quality content is efficiently delivered to consumers promptly.
• The Growing Adoption of OTT Platforms: In Italy, both global and domestic OTT services such as Netflix are expanding at a fast pace, which supports the development of newer video codecs like AV1 and HEVC. These services encounter the problem of HD and 4K videos buffering on slower internet connections, so they must invest in infrastructure to adopt next-gen compression technologies. OTT service providers in Italy are rapidly adopting these codecs because they enable the viewing of higher-quality videos while consuming less bandwidth, significantly reducing the burden during peak hours.
• Need for Cost and Energy Saving Video Streaming: Concerns over sustainability in Italy are pushing for new video codecs that are more energy-efficient in the process of streaming videos. Newer codecs such as AV1 and VVC offer better compression ratios, which help save data while improving video quality. This allows content providers to cut down on the energy expenditure associated with video delivery systems, which aligns with Italy’s increased focus on green technology. These energy-saving codecs are now a primary need for the Italian enterprise market to fulfill the market’s HD content and eco-friendly initiatives.
• Partnerships between Telecommunications: In Italy, partnerships between telecom companies and streaming services are driving the evolution of video codecs. These telecom companies are working with content providers to competitively serve the increasing market demand for video content while ensuring the high quality of their networks. These partnerships implement advanced video coding such as HEVC and AV1, which mitigate the burden on telecom circuits for streaming HD and 4K videos. As these partnerships expand, they will lower infrastructure costs, strengthening Italy’s video delivery systems.
• Focus on Content Localization and Accessibility: Italian content providers are shifting their focus toward the localization and accessibility of video content to cater to diverse audiences in Italy. Next-generation video codecs support multilingual audio tracks, subtitles, and adaptive bitrate streaming to enhance the viewing experience for both Italian audiences and global market expansion. Content providers can use AV1, HEVC, and other codecs to efficiently deliver high-quality localized video content, improving both engagement and reach. This shift is encouraging the establishment of content-rich systems in Italy, increasing the demand for advanced video compression technologies.
The latest developments in the next generation video codec market in Italy highlight the increasing importance of cross-platform, high-quality video delivery driven by the adoption of 5G, OTT platform growth, and sustainability efforts. The rapid growth and advancements within these compression technologies (AV1, HEVC, and other video compression technologies) are optimizing streaming while reducing energy consumption and improving the user experience. The market in Italy is expected to transform as the country adopts these technologies. The introduction of artificial intelligence in Italy will completely change the way the Italian market consumes video and how businesses offer their services to clients.
Strategic Growth Opportunities for Next Generation Video Codec Market in Italy
The next generation video codec market in Italy is growing due to the increasing demand for video content driven by OTT platform usage, 5G, and mobile video streaming. Additional compression technologies such as AV1, HEVC, and VVC are emerging to maximize bandwidth and enhance video quality for consumers. The evolution of these technologies creates many strategic growth opportunities across important applications that will drastically change the video codec market in Italy.
• Expansion in Streaming Services and OTT: The emergence of OTT platforms, while drastically increasing in number and usage, has created an increase in the demand for services like Netflix, Prime Video, and other local platforms. This will create the need for next generation video codecs that provide smooth streaming while being economical in bandwidth consumption. This drives the need for more sophisticated compression technologies like HEVC and AV1, which assist in managing higher resolution (4K, 8K) streams. These technologies will become the focus of Italian content providers who are aggressively trying to capture the available market and enhance user experience.
• New Video Codecs Adoption in the Italian Media Industry: A stronger telecom network will make mobile video streaming easier and faster in Italy. When Italian telecoms implement 5G, incorporating efficiently optimized mobile video codecs will be vital to accommodate the needs of a mobile- and video-centric society. The use of high-bandwidth, low-latency codecs will allow telecom providers to ensure that mobile users can consume video content without buffering or long delays.
• Development of Cloud-Based Video Services: Hardware and software cloud-based video companies are emerging in Italy, ranging from business communications to content delivery. To achieve video quality across varied network conditions, video data volumes are handled through efficient video codecs. Cloud providers can now serve streams using next generation codecs such as AV1, improving the experience for both businesses and private customers. This continued growth in cloud infrastructure is bound to fuel innovation in codec development within Italy’s telecom industry.
• Policy Pursuits and Digital Media Support in Italy: Funding is available to enhance media services infrastructure within digital innovation support, along with policies from the Italian government aimed at improving the adoption of 5G and cloud computing. These initiatives establish a framework to support and innovate the next generation video codec market. The investments provided to Italian companies to boost streaming video quality and efficiency are substantial, which means the government will contribute to the accelerated adoption of advanced video codecs, thus benefiting the Italian economy.
Next Generation Video Codec Market in Italy Driver and Challenges
A combination of technological, economic, and regulatory developments continues to shape the next generation video codec market in Italy. The installation of 5G infrastructure, for example, increases the industry’s need to develop more sophisticated video codecs for efficient video streaming. Unfortunately, the same growth opportunities may be hindered by challenges like data security barriers, expensive developmental costs, and regulatory policies. To fully understand this constantly changing landscape, stakeholders must take these factors into consideration.
The factors responsible for driving the next generation video codec market in Italy include:
• Growth of Technology Within Network Frameworks: The deployment of network infrastructure, such as 5G across Italy, is one of the reasons for the growth of the Next Generation Video Codec Market. AV1 and HEVC provide improved video quality at lower bitrates, ensuring the effortless delivery of high-quality video content. This technological shift will also increase the demand for next-gen codecs. 5G networks facilitate extremely efficient speeds with low latency, making high-quality video content delivery seamless. As these next generation codecs roll out, the demand for 5G networks will increase further.
• Increasing Expectations for Advanced Video Content: Next-generation codecs are more efficient, but they can cause network infrastructure overload. The increased popularity of OTT platforms that provide 4K and 8K caliber content, along with growing consumer expectations, will require advanced video codecs for efficient streaming. High-quality video content is on the rise, which has made next-gen codecs more in demand. These codecs will allow OTT platforms to stream better visuals while minimizing data costs. High bitrate video codecs provide a solution to these expectations.
• Evolution of Mobile Video Streaming: The consumption of video content on mobile devices is increasing exponentially in Italy, driven by the growing popularity of smartphones and mobile data usage. With more consumers viewing video content on mobile devices, there is a demand for mobile-streaming-friendly video codecs. AV1 and similar codecs offer high-quality streaming at low data rates, thus improving the experience for users on mobile platforms. As a result, mobile operators and OTT platforms are seeking better AV streaming tools, especially for active and global viewers. Therefore, the increasing use of mobile platforms is driving the rapid growth in demand for next-gen video codecs.
• Regulatory Support for Digital Growth: To promote technological change, the Italian government is supporting the country’s adoption of new technologies and improving digital infrastructure through various strategies. These initiatives are supporting the Italian digital economy by providing funding for digital media, telecom networks, and even 5G, which positively impacts video codec development spending. As regulatory support grows, the use of next generation video codecs will become the norm, enabling Italian firms to offer more effective video content.
• Economic and Sustainable Video Manufacturing: High-quality video content has been increasing over the years, making it imperative to advance compression technologies to optimize expenses and energy usage. Video codecs like AV1 and HEVC offer improved compression ratios. The streams or clips provided will be of high quality, while the costs for storage and bandwidth will decrease. The reduction in expenses, combined with a greater focus on sustainability, is leading companies to adopt these codecs, which encourages the development of video codecs in Italy.
• Obstruction by Elevated Costs of Development and Licensing: The adoption of AV1 and HEVC is impractical for smaller providers and corporations in Italy due to the elevated costs of patenting, infrastructure, and codec integration. The IT industry as a whole suffers because next-gen codecs require considerable resources for development, licensing, and integration into collected video data. These enterprises face several obstacles, particularly when expanding to smaller private Italian companies that struggle to meet initial costs. These hurdles will slow adoption rates, especially for smaller companies that lack resources.
Challenges in the next generation video codec market in Italy are:
• Privacy and Security Issues: As video streaming services become more popular, issues surrounding privacy and security increase. As a member of the EU, Italy is subject to compliance-heavy regulations such as GDPR. A breach in regulations could have dire consequences. Therefore, Italian providers must ensure privacy while transmitting, streaming, and storing content. To meet the often-contradictory expectations of IT industry regulators, video codec developers must work in close cooperation with them, making the implementation of next-gen video codecs more difficult and expensive.
• Integration and Compatibility Issues: Integration and compatibility issues with existing infrastructures further complicate the adoption of new legacy codecs. The Italian content industry has spent enormous amounts of money on legacy codecs, which makes adopting AV1 and HEVC significantly more expensive and time-consuming. Change will only be achievable if new codecs function alongside existing platforms, infrastructure, and devices. If left unchecked, this technological hurdle could delay progress for video codecs in Italy for an undetermined amount of time.
The market for next generation video codecs in Italy is affected by various factors, including improvements in network infrastructure, growing consumer demand for quality video content, and emerging support for digital innovation. However, slower adoption is being hindered by high development costs, regulatory issues, and the complexities associated with codec integration. These elements will remain significant in shaping the evolution of the video codec market, while addressing the Italian technological and regulatory environment concerning video technologies.
List of Next Generation Video Codec Market in Italy 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 Italy by Segment
The study includes a forecast for the next generation video codec market in Italy by video codecs type and application.
Next Generation Video Codec Market in Italy by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in Italy by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in Italy
Market Size Estimates: Next generation video codec in Italy 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 Italy 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 Italy.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in Italy.
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 Italy?
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 Italy?
Answer: The future of the next generation video codec market in Italy looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in Italy 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 Italy 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 Italy, Next Generation Video Codec Market in Italy Size, Next Generation Video Codec Market in Italy Growth, Next Generation Video Codec Market in Italy Analysis, Next Generation Video Codec Market in Italy Report, Next Generation Video Codec Market in Italy Share, Next Generation Video Codec Market in Italy Trends, Next Generation Video Codec Market in Italy Forecast, Next Generation Video Codec Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.