According to ABI Research, video infrastructure markets, including broadcast pre- and post-production, video encoding, and VOD and CDN hardware, continue to grow at a pace of 37% over the next 5 years, despite virtualization separating hardware and software requirements.
"The encoder and transcoder market represents the brightest spot in the video industry. Growth in this sub-market is at 9% annually, compared to 6% in the broadcast pre- and post-production market, and between 4% to 5% in the satellite and VOD/CDN markets," wrote ABI Research Analyst Eric Abbruzzese. "Both traditional drivers - including increased channel counts in many markets together with encoding density to mitigate spectrum considerations - as well as new applications, including multiscreen currently and truly mobile video services in the next 3 to 5 years, also contribute."