Video Streaming Market

Market Definition

The video streaming market involves the delivery of video content via the internet, enabling users to stream or download videos instantly. This market includes both on-demand and live streaming services, available across various devices such as smartphones, tablets, and smart TVs.

It features subscription-based and ad-supported models, offering a range of content such as movies, TV shows, sports, and live events to cater to various audience tastes.

Video Streaming Market Overview

Global video streaming market size was valued at USD 104.57 billion in 2023, which is estimated to be valued at USD 121.44 billion in 2024 and reach USD 399.64 billion by 2031, growing at a CAGR of 18.55% from 2024 to 2031.

The widespread adoption of smartphones, smart TVs, and tablets enables users to easily access video content anytime, anywhere. This convenience boosts the demand for video streaming services, supporting market growth by providing seamless viewing experiences across multiple devices.

Major companies operating in the global video streaming industry are IBM Corporation, Alphabet Inc., Amazon.com, Inc, Netflix, Inc., Hulu, LLC (Disney), Peacock TV LLC (NBC Universal), Apple Inc., Roku, Inc., Haivision Systems Inc., Tencent Cloud, Akamai Technologies, Kaltura, Inc., Wowza Media Systems, LLC, Vimeo.com, Inc., Netgem Group, and others.

The video streaming market is characterized by evolving consumer preferences, with a strong focus on flexibility and convenience. As technology advances, platforms are offering more personalized experiences, allowing users to tailor content consumption to their preferences.

• In December 2024, Prime Video launched its AI Topics feature in beta, providing personalized content recommendations based on user interests and viewing history. The AI-powered tool groups shows and movies into relevant topics, enhancing content discovery and streamlining the search process.

The market fosters competition among providers to capture attention through innovative content offerings and enhanced viewing experiences. The diverse range of content types reflects a growing shift in the way people engage with entertainment, contributing to a more interactive and global media landscape.

Key Highlights:

1. The global video streaming market size was recorded at USD 104.57 billion in 2023.
2. The market is projected to grow at a CAGR of 18.55% from 2024 to 2031.
3. North America held a substantial share of 36.46% in 2023, valued at USD 38.13 billion.
4. The smartphones & tablets technology segment garnered a revenue of USD 40.42 billion in 2023.
5. The over-the-top (OTT) segment is expected to reach USD 210.02 billion by 2031.
6. The subscription segment accounted for a share of 52.93% in 2023.
7. The live video streaming segment is expected to grow at a robust CAGR of 19.30% over the forecast period.
8. Asia Pacific is anticipated to grow at a staggering CAGR of 19.74% through the projection period.

Market Driver

"Rising Internet Penetration Drives Video Streaming Market Growth"

Increased internet penetration is fueling the growth of the video streaming market. The global expansion of high-speed broadband and 5G networks have made streaming more accessible to a broader audience, particularly in rural and developing regions. Faster, more reliable internet enables smoother streaming experiences, reducing buffering and enhancing content quality.

As internet access improves worldwide, an increasing number of consumers are adopting streaming services, thereby fueling market growth and increasing demand for on-demand content.

• As stated by the ITU (International Telecommunication Union), approximately 67% of the global population, or 5.4 billion people, were online in 2023, reflecting a growth of 4.7%. This increase in internet access has significantly expanded the global reach and accessibility of video streaming services.

Market Challenge

"Rising Data Privacy and Security Concerns Present Challenges to Vido Streaming Platforms"

Increasing concerns related to data privacy and security pose significant challenges to the development of the video streaming market, as these platforms collect vast amounts of personal data from users. To address this, streaming services should implement robust encryption methods, adopt strict data protection protocols, and comply with applicable global privacy regulations.

Ensuring transparency in data usage, offering users control over their information, and conducting regular security audits can help build trust. By prioritizing cybersecurity, platforms can safeguard user data and mitigate risks of breaches, ensuring a secure viewing experience

• Federal Trade Commission’s (FTC) September 2024 report highlights the surveillance practices of major social media and video streaming companies, emphasizing inadequate data protection, speicifically for children and teens. It recommends stronger privacy measures, data minimization, and comprehensive federal privacy legislation to safeguard user data.

Market Trend

"Integration of AI Revolutionizes Personalization and User Experience"

The use of AI in the video streaming industry has become a pivotal trend, enhancing personalization and content discovery. AI algorithms analyze user preferences and viewing habits to provide tailored recommendations, increasing engagement. Additionally, AI-driven tools improve search functionality, automate subtitles, and upscale video quality.

The technology also enables dynamic ad targeting, ensuring more relevant ads for viewers. By optimizing user experience and operational efficiency, AI helps streaming platforms remain competitive and better serve their audiences.

• In November 2024, Amazon Prime Video introduced enhancements to the viewing experience, including features such as Dialogue Boost, personalized recommendations, and AI-powered X-Ray Recaps to simplify content discovery. AI also increases accessibility with increased audio descriptions and provides real-time insights in live sports, improving engagement and convenience.

Video Streaming Market Report Snapshot

Market Segmentation

• By Platform (gaming consoles, laptops & desktops, smartphones & tablets, and smart tv): The smartphones & tablets segment generated a revenue of USD 40.42 billion in 2023 due to increased device usage, providing easy access to streaming platforms and on-the-go content consumption.
• By Channel (over-the-top (OTT), internet protocol tv, and others): The OTT segment held a notable share of 48.94% in 2023, mainly due to their accessibility, which deliver on-demand content without traditional cable or satellite subscriptions.
• By Revenue Model (advertising, rental, and subscription): The subscription segment is projected to reach USD 222.70 billion by 2031, attributed to the growing demand for on-demand content, affordable pricing models, and increased user preference for flexible, ad-free, and personalized streaming experiences.
• By Streaming Type (live video streaming and non-linear video streaming): The live video streaming segment is expected to grow at a CAGR of 19.30% over the forecast period due to increasing popularity of real-time content, live events, gaming, and social media platforms, which offer interactive and immersive experiences for global audiences.

Video Streaming Market Regional Analysis

The North America video streaming market accounted for a notable share of around 36.46% in 2023, valued at USD 38.13 billion. This dominance is reinforced by high internet penetration, advanced technological infrastructure, and a large consumer base with strong purchasing power.

• As of November 2024, Pew Research Center's fact sheet reveals that 96% of U.S. adults report use the internet, highlighting the widespread adoption of digital connectivity across the country.

The region is home to several major streaming platforms, resulting in widespread adoption across the U.S. and Canada. Additionally, increasing demand for on-demand content, original productions, and live streaming services, coupled with growing smartphone usage, strengthens North America's leading position in the global market.

Asia-Pacific video streaming industry is projected to witness significant, recording a staggering CAGR of 19.74% through the projection period. This growth is primarily fueled by rapid internet adoption, increasing smartphone usage, and the expansion of affordable broadband networks.

The growing and diverse population is creating a strong demand for both local and international on-demand content. The rise of regional streaming platforms and increased investments in original content are further fueling regional market growth.

• In November 2024, The Walt Disney Company Asia Pacific unveiled new Korean and Japanese Disney+ Originals. These star-driven productions strengthens Disney+'s content strategy in the rgion, enhancing its streaming offerings.

Region’s Regulatory Framework Also Plays a Significant Role in Shaping the Market

• In the U.S., The Federal Communications Commission (FCC) regulates interstate and international communications, including radio, television, wire, satellite and cable, across all 50 states.
• The Digital Millennium Copyright Act amended U.S. copyright law to address the relationship between copyright and the internet, ensuring copyright protection for streaming platforms.
• The EU's Audiovisual Media Services Directive (AVMSD) governs EU-wide coordination of national legislation on all audiovisual media, including traditional TV broadcasts and on-demand services.
• In Asia-Pacific, India's the Ministry of Information and Broadcasting oversees the private broadcasting sector,  public broadcasting, multi-media advertising, government policy promotion, film certification, digital media, and print media regulation.

Competitive Landscape

The global video streaming market is characterized by a large number of participants, including both established corporations and emerging organizations. Key players are forming strategic partnerships to expand their market reach.

By collaborating with various stakeholders, platforms can reach new audiences, enhance content offerings, and improve user experience, fostering growth and increasing brand visibility across global markets.

• In August 2024, Bharti Airtel introduced exclusive offers for Apple TV+ and Apple Music to enhance entertainment for Indian customers. This partnership aims to provide access to premium global content via Airtel Xstream, offering enriched viewing and listening experiences.

List of Key Companies in Video Streaming Market:

• IBM Corporation
• Alphabet Inc.
• com, Inc
• Netflix, Inc.
• Hulu, LLC (Disney)
• Peacock TV LLC (NBCUniversal)
• Apple Inc.
• Roku, Inc.
• Haivision Systems Inc.
• Tencent Cloud
• Akamai Technologies
• Kaltura, Inc.
• Wowza Media Systems, LLC
• com, Inc.
• Netgem Group

Recent Developments

• In January 2025, FuboTV and The Walt Disney Company announced a definitive agreement to merge Hulu + Live TV with Fubo, creating a combined virtual MVPD. The transaction, pending approvals, aims to enhance consumer choice, with Disney owning 70% of the new entity, while Fubo’s management retains leadership.
• In October 2024, Amazon acquired certain assets of MX Player, merging the app with Amazon miniTV to create Amazon MX Player, a top free streaming service in India. With a combined library of popular shows and films, it offers premium content and targeted advertising opportunities across diverse genres and languages.
• In October 2024, Deftouch, a gaming publisher based in Bengaluru, raised funding in a round co-led by KRAFTON, T-accelerate Capital, and Lumikai. The  startup plans to expand its game portfolio, explore new features, and prepare for a Series A funding round by 2025.
• In October 2024, Apple TV+ became available on Prime Video in the U.S., offering access to popular shows, films, and live sports. This integration enhances Prime Video’s entertainment offerings, allowing customers to personalize their streaming experience within one app.
• In December 2024, Amazon expanded its AI and machine learning innovations by introducing AI-powered features across various platforms, including Prime Video’s generative AI recaps. AWS's cloud and AI contributions are expected to surpass USD 12 trillion in global GDP by 2030, driving further technological advancements.