Next Generation Video Codec in Thailand Trends and Forecast
The future of the next generation video codec market in Thailand 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 Thailand 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 Thailand
In Thailand, the next generation video codec market is booming due to the increasing quality demands of video content users. This demand stems from the growing mobile video usage and investments in broadband, all of which are part of a more progressive digital economy. Certain emerging trends showcase how major shifts in technology adoption and consumer behavior are occurring alongside changes in the media and entertainment industry. These trends forecast the future of the video codec market while indicating the factors that Thailand has begun to capitalize on.
• Increase in Video Content Exposed on Mobile Devices: In Thailand, the consumption rate of video content on smartphones is growing rapidly due to the high demand for smartphones and affordable data plans. The demand for mobile devices capable of streaming HD videos has led to the need for advanced video codecs that can provide bandwidth efficiency. Newer codecs such as HEVC and AV1 are gaining popularity in Thailand as they offer optimized video quality at low bitrates using moderate network speeds. This shift is influencing the choice of codecs used in mobile video streaming.
• Expansion of 5G Networks: In Thailand, the launch of 5G networks is improving mobile video streaming, virtual reality (VR), and augmented reality (AR) activities. These innovations have high bandwidth and low latency demands, which are easily met by next generation video codecs like AV1. The wide adoption of 5G is raising the need for video codecs that can transmit high-speed, high-quality videos. The continued development of 5G networks throughout Thailand will require next generation video codecs to ensure consumers receive seamless, top-of-the-line interactions.
• Adoption of OTT Streaming Platforms: In Thailand, OTT streaming services like Netflix and YouTube, as well as local providers, are gaining traction. Along with this growth, there are rising expectations from consumers for higher quality video streaming and efficient codecs capable of 4K and higher resolutions. Outdated codecs are expected to be replaced by next generation codecs, such as AV1 because they provide high-quality video while minimizing buffering and enhancing the user experience. The OTT streaming market is increasingly becoming a target for video codec providers due to the trends mentioned above.
• The Development of Marketing Through Digital Entertainment and Games: As digital entertainment and gaming continue to permeate Thai society, there is a noticeable increase in demand for next generation video codecs. Advanced streaming of games and esports competitions necessitates the use of sophisticated video codecs that can efficiently compress large amounts of data without losing visual quality. Advanced codecs like AV1 and HEVC enable game streamers to transmit high-resolution video content without noticeable delays. Such trends will increase the use of next generation codecs in the esports digital entertainment and streaming industries.
• Government Investment in Digital Infrastructure as an Impetus: The initiatives of the Government of Thailand in innovating digital infrastructure are one of the main reasons for the adoption of next generation video codecs. With new policies aimed at widening broadband penetration and improving network infrastructure, there is an increased opportunity for high-quality video streaming to be available to more viewers in different regions of the country. Moreover, government spending on 5G technology and smart city projects is likely to boost the demand for effective video codecs for the smooth delivery of video content across various industries, such as healthcare, education, and entertainment.
In Thailand, the consumption of mobile video content, the development of 5G networks, the growth of OTT streaming services, digital entertainment and gaming, and government backing for digital infrastructure are all contributing to the growth of the next generation video codec market. These trends are fostering the adoption of next generation video codecs like AV1 and HEVC, which are the backbone for superior video experiences while conserving bandwidth. The convergence of video streaming and entertainment in Thailand is further evolving these nexuses in the market to improve opportunities for video codec providers.
Recent Developments in the Next Generation Video Codec Market in Thailand
These nexuses in Thailand’s next generation video codec market are concentrated around improvements in video quality, enhanced mobile network capabilities, and the high demand for high-definition video content. These changes substantiate the country’s commitment to greater connectivity and improved digital service delivery. As infrastructural technology develops and the consumer sphere becomes more quality-conscious when it comes to video, enhancing the delivery of high-definition content will become an increasingly useful focus for video codecs. Below are five key developments reshaping the video codec market in Thailand.
• Initiation of New Improved 5G Networks: The launch of 5G networks in Thailand has electrified the video codec market. Advanced 5G networks allow for the streaming of breathtaking content like 4K videos and much more while ensuring lower latency and faster speeds than ever. Highly advanced video codecs like AV1, which offer high-compression streaming for high-definition videos, are taking over as people expect effortless streaming. The market for Thailand’s video content delivery system will continue to grow due to the expansion of 5G technology, along with the introduction of newer ultra-high-definition video services.
• Streaming Services Begin Using AV1: Streaming services in Thailand are starting to use the AV1 codec, which has a reputation for producing lower-bitrate videos while maintaining excellent quality. AV1 improves compression and enables streaming platforms to offer 4K and UHD content at reduced bandwidth, which is essential in regions with poor high-speed internet. Similar to other OTT streaming platforms, AV1 is bound to become the go-to choice among Thai people for streaming high-definition AVI files due to the availability of so many remotely accessible video codec technologies.
• Emergence of Smart Cities and Digital Solutions: The efforts of the Thailand government to build smart cities and improve digital infrastructure are helping to develop next generation video codecs. In sectors like education, healthcare, and public safety, where high-definition video services are critical, codecs are optimized to efficiently process large bandwidths of video data. The development of smart cities calls for more sophisticated video codecs that can guarantee the required quality and bandwidth for telemedicine, video conferencing, and live video streaming from smart sensors.
• Increase in Revenue Generated from Mobile Gaming and Esports Industry: There has been an increase in mobile gaming and esports in Thailand, which has created a need for advanced video codecs that provide low latency while streaming high-quality games. The popularization of game streaming services and esports events is driving the adoption of modern codecs like HEVC and AV1, which eliminate lag during video streaming. The growth of mobile gaming and esports is acting as a catalyst for the adoption of video codecs, enabling better gameplay and streaming for everyone in Thailand.
• The Rise of Local OTT Content Providers: Apart from established OTT businesses, domestic players in Thailand are gaining footholds within the region. These platforms aim to localize content by offering Thai dramas, movies, and even sports, which means they require video codecs capable of streaming all of this content to users at high quality. In the face of growing competition within the industry, Thai OTT services are resorting to sophisticated video codecs to enhance the user experience, control bandwidth expenses, and improve video quality while keeping prices low.
The aforementioned factors supplement and sustain the argument that robust advancements in 5G adoption, the emergence of smart cities, the growth of mobile gaming and esports, and the fostering infrastructure are encouraging local OTT content providers to enter the next generation video codec market and improve streaming practices. The adoption of the AV1 codec has helped strengthen this argument. As Thailand continues to adopt new technologies, video codecs will be critical in providing effortless, high-definition content throughout various sectors in Thailand.
Strategic Growth Opportunities for Next Generation Video Codec Market in Thailand
The Thailand next generation video codec market stands to benefit from ongoing technological progress as well as changing consumer needs. The increasing mobile video usage, digital streaming, and high-end video application usage create new business prospects for video codec providers. The following opportunities are important for different regions in Thailand where the implementation of new video compression technology could improve content delivery and user interaction.
• Mobile Video Content Streaming: Thailand’s increased smartphone usage, coupled with mobile data subscriptions, not only provides new business for next generation video codecs but for video streaming in general. Mobile video consumption continues to grow, therefore, HEVC and AV1 codecs are crucial for high-definition streaming. These mobile codecs help in delivering premium content even where network infrastructure is poor. The mobile-first approach in video consumption presents limitless opportunities for efficient streaming, which is why mobile video users are demanding these codecs.
• 5G Network Expansion: “Stream anytime, anywhere” is put into action with the expansion of 5G networks in Thailand. Next-generation commercial video codecs like AV1 can now deliver 8K and 4K quality videos at ultra-low latency. High-speed mobile networks will make premium video content services readily available for every industry, such as gaming, education, and entertainment. Constantly evolving advanced video codec technologies will now be in high demand. With improvements in the infrastructure, the growth of 8K video service streams will become a possibility.
• OTT Platforms and Thai Streaming Services: As international OTT platforms like Netflix and Disney Plus expand their brand presence in Thailand’s growing OTT streaming market, there is a massive demand for high-quality and budget-friendly video content. Services like Disney Plus and Netflix that deliver UHD content need to minimize their bandwidth usage, which can now be achieved through next generation video codecs AV1 and VP9. These OTT services will also be able to provide an effortless viewing experience to their Thai users without high-resolution photo viewing glitches.
• Video Rotation and Online Game Streaming: Thailand’s growth in mobile and esports gaming brings opportunities for advanced video codecs that can support live esports activities streaming. These video codecs allow large amounts of information to be transmitted while still having low lag and maintaining clear visuals. New techniques, such as compression, and the existing codecs of HEVC and AV1 allow slow network bandwidths to be handled, supporting the gaming community and esports presenters. As Thailand expands its gaming communities, there will be a necessary increase in the use of low-latency codecs.
• Smart City and Government-Supported Video Innovations: The effort towards building smart cities in Thailand comes with an opportunity for next generation video codecs that can assist with government and public sector applications. All these modifications, including video surveillance, remote healthcare, and smart transportation systems, require a certain grade of quality streaming video. Video codecs for high-resolution compression are a must for these public services to be provided effectively and economically. Government support for more comprehensive all-around digital access provides more support for increased use of these video codecs within the public sector.
The strategic growth opportunities for Thailand’s next generation video codec market stem from the increasing consumption of mobile videos, the proliferation of 5G networks and OTT platforms, surging esports and gaming streaming, plus the government’s own smart city initiatives. The demand across industries for higher quality videos is growing, and advanced codecs such as AV1 and HEVC are able to deliver a user-friendly experience while optimizing bandwidth. These opportunities will enable market progress as providers take advantage of evolving technologies, further meeting the demands of Thai consumers and businesses.
Next Generation Video Codec Market in Thailand Driver and Challenges
The next generation video codec market in Thailand is shaped by several drivers and challenges. New technological developments, changes in regulations, and shifts in consumer behavior are drivers for the adoption of newer video compression technologies. Yet, there are opportunities for improvement, such as growth within the market being stunted due to the infrastructure needing to be upgraded, as well as the issues presented by codec interoperability across platforms. It is important for businesses wanting to address the changes in the video codec market to understand these drivers and challenges.
The factors responsible for driving the next generation video codec market in Thailand include:
• Changes in The Solutions for Managing Network Systems: The introduction of new codecs is highly correlated with the market expansion of Thailand. New OTT and mobile gaming services exploit the ease of access to reliable and faster internet. IoT devices and mobile streaming services are remarkably popular and increasing Thailand’s consumption capacity over-the-top. The deepening investment in video codecs is observed, aiming to optimize ultra-high-definition video streams’ efficiency. Next-generation codecs clearly scale the level of stalling and latency, profoundly enhancing video streaming background quality. This phenomenon continuously fuels the use of advanced codecs.
• The Requirement for The New Generation Video Codec Market: The demand for high-quality video on mobile devices is escalating, drastically altering the Thai infrastructure market with Boost International’s OTT services and the mobile console gaming industry. Moreover, AI deep learning systems provide new mobile streaming services. Along with providing services, Thailand is expanding its national consumption spending over the top. This new precision in video compression quality resolution is critical with over-the-top gaming services using HEVC and AV1 codecs. Thai providers of superior video content are striving to overcome the challenge of extreme video compression.
• Emergence of OTT Streaming Services: The rise of independent and established global OTT platforms in Thailand constitutes another reason for the adoption of newer video codecs. The increasing consumption of video content from streaming services puts a tremendous burden on these services to provide quality video while controlling bandwidth use. The use of sophisticated video codecs such as AV1 for 4K and HDR streaming saves data without violating user requirements, so video content can be efficiently delivered.
• Government Initiatives Towards Digital Transformation: The initiatives set forth by the government of Thailand to enhance the digital infrastructure of the country and create smart cities boosted the efforts for video codecs that can stream high-definition videos for an array of public services. From video-protected surveillance systems to remote healthcare services, the evolving requirements call for video codecs that deliver high-quality content with minimal use of bandwidth. Such government spending on digital connectivity and infrastructure will inevitably drive these markets, where advanced video codecs emerge as the next step for the country’s digital transformation.
• Improvements in Video Compression Techniques: As competition increases in the next generation video codec market, a lot of research and development is being done in the field of compression technologies. Thanks to the introduction of new codecs such as AV1, which surpass their predecessors H.264 and VP9 in both compression and quality, adoption rates are climbing for these new technologies. The wave of adopting new codecs that provide high-quality video while utilizing less bandwidth is rapidly changing the video streaming industry in Thailand and the rest of the world, creating a decisive move towards next generation video codec solutions.
• Scrutiny of Infrastructure Compatibility: One of the biggest obstacles for the next generation video codec market in Thailand is meeting the requirement of compatibility with various devices and platforms. A large number of older devices, such as many smartphones and set-top boxes, do not support newer codecs like AV1 or HEVC. This fragmentation may prove problematic in the near-term adoption of these codecs, as businesses will want to ensure that all consumers are able to view content irrespective of the device they use. Solving this problem can only be accomplished through significant investments in both hardware and software peripheral to the devices to allow for playback on a wide range of devices.
Challenges in the next generation video codec market in Thailand are:
• Extreme Accomplishment Expenses: There are considerable expenses incurred when integrating new video coding technologies, especially for content providers and streaming service businesses. Advanced codecs, for example AV1, offer increased compression efficiency and quality; however, their adoption is limited by the need for enhanced infrastructure and improved processing capabilities. Smaller local content companies in Thailand will have a hard time justifying these expenses where ROI is instant, or even close to immediate. The challenge is finding ways to adapt new codecs that would be cost-effective and profitable at the same time.
• Institutional and Licensing Issues: Issues that a Thai firm faces when trying to use video coding technology like HEVC are most likely proprietary and regulatory issues. The licensing costs and patent problems associated with codec technology will put off smaller and local OTT platforms. Because of the competitive nature of the Thai market, the intricacy of codec licensing poses a major barrier for those wishing to invest in advanced video compression solutions.
Thailand’s market for next generation video codecs is primarily driven by network infrastructure development, increasing consumer demand for better video quality, and the growth of OTT streaming services. On the other hand, factors such as infrastructure mismatches, high cost of implementation, and regulatory issues pose significant challenges. Solving these problems will greatly assist the codec market in Thailand. Once these factors are addressed, the codec market will surely grow. This will also encourage more technological development and extensive usage of Next Generation codecs.
List of Next Generation Video Codec Market in Thailand 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 Thailand by Segment
The study includes a forecast for the next generation video codec market in Thailand by video codecs type and application.
Next Generation Video Codec Market in Thailand by Video Codecs Type [Analysis by Value from 2019 to 2031]:
• AVC
• AV1
• HEVC
• VP9
• VVC
Next Generation Video Codec Market in Thailand by Application [Analysis by Value from 2019 to 2031]:
• Mobile Phone
• Computer
• TV
• Others
Features of the Next Generation Video Codec Market in Thailand
Market Size Estimates: Next generation video codec in Thailand 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 Thailand 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 Thailand.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the next generation video codec in Thailand.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the next generation video codec market in Thailand?
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 Thailand?
Answer: The future of the next generation video codec market in Thailand looks promising with opportunities in the mobile phone, computer, and TV markets.
Q3. Which next generation video codec market segment in Thailand 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 Thailand 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?
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