According to Valuates Reports, in 2017, the global over-the-top (OTT) video market size was estimated at $97.43 billion and is expected to reach $332.52 billion by 2025, rising at a CAGR of 16.7% from 2018 to 2025.
Growing OTT demand in developed regions, growing subscription video on demand (SVoD) services in emerging markets, expanding content choice, and rising demand for live streaming channels are complementing market growth. Lack of infrastructure for the data network and latency issues are expected to hamper the market growth.
Trends influencing the market size include:
- One of the significant factors driving growth in the OTT market is the growing penetration of mobile computing devices. Factors such as rising per capita income, low-cost smartphone availability, growing Internet penetration, and growing investment in communication network infrastructure affect the penetration of mobile computing devices worldwide.
- The smartphone segment dominated the overall OTT market in 2017 and is expected to remain dominant during the forecast period, owing to increased smartphone use to stream OTT services.
- The media and entertainment industry dominated the OTT market in 2017 and is predicted to remain dominant over the forecast period as digital content viewers rise in numbers.
- Artificial intelligence (AI) technology is being applied across various facets of OTT services, from development and production to post-production, marketing, and advertisement. AI, when integrated with the OTT framework, can automatically suggest content based on multiple user data review. AI can also help marketers define areas of interest under each theme, thus helping them generate more substantial variations of advertisements for the same material in the media. While AI implementation is still in its early stages, its ability to improve customer experience is expected to improve the OTT market.
Regionally, the Asia-Pacific region is expected to rise at the fastest CAGR as telecommunications providers sell their data plans to OTT companies. North America dominates the overall share of the OTT market, as the area has high broadband penetration as well as a number of services that providing content in HD and UltraHD/4K.