The Future of Video on Demand: $387.5 Billion Industry by 2032
With the rise in internet users, the growth of digitalization, and the increase in online services, the video-on-demand market has been one of the fastest-growing industries.
Video-on-demand services such as Netflix, Amazon Prime, Disney+, and Hulu are becoming increasingly popular among people of all ages.
Allied Market Research reports that the global video-on-demand market generated $75.2 billion in 2020 and is expected to reach a staggering $387.5 billion by 2032 at a CAGR of 16.7%.
In this blog post, we will explore the factors contributing to this exponential growth of the video-on-demand market and what the future holds for this Industry.
1. Growth in the number of internet users:
The increase in internet users worldwide has been a crucial factor driving the growth of the video-on-demand industry.
With the rise in internet penetration, more and more people are accessing the internet and using it to stream videos and other content.
According to Statista, internet users are expected to reach 4.3 billion by 2023, providing a massive potential customer base for the video-on-demand market.
2. Rise in Original Content:
Original content production has been one of the main factors that set the most popular video-on-demand services apart from traditional TV networks.
Video-on-demand platforms such as Netflix, Amazon Prime, and Disney+ have invested heavily in producing original content aimed at their subscribers, such as TV shows, movies, and documentaries.
Original content has proven to be one of the key factors in attracting and retaining customers, and this trend is set to continue as the Industry evolves.
3. Increase in Mobile Video Consumption:
With the rise of smartphones and other mobile devices, more and more customers are turning to mobile devices to consume video content.
The convenience of watching videos on the go has been a significant factor in the growth of the video-on-demand industry.
Moreover, with the increase in 5G networks allowing for faster internet connections, the demand for video-on-demand services will only grow.
4. Growing demand for personalized content:
The video-on-demand industry has successfully provided customers with a personalized experience when it comes to content consumption. Users can choose what they want to watch, when they want to watch it, and how they want to watch it. This personalized experience precedes traditional TV networks as customers seek more tailored, on-demand viewing experiences.
The Industry is set to grow even further as these personalized experiences become more seamless and the offerings become more diverse.
5. Expansion in Emerging Markets:
The video-on-demand industry is not limited to developed countries such as the US and Western Europe; it is expanding globally, especially in emerging markets such as India, China, and Africa.
Rapid urbanization, growth in disposable income, and the penetration of mobile devices in these markets have created an abundance of new potential customers for the Industry.
Companies like Netflix and Amazon Prime are investing heavily in producing content tailored to these markets, making the Industry more inclusive and accessible to a global audience.
The video-on-demand industry has already come a long way and shows no signs of slowing down.
Allied Market Research predicts that the Industry will reach an impressive $387.5 billion by 2032, and we can see why.
The continued investment in original content, growing demand for personalized experiences, and expansion into emerging markets are some of the reasons why the video-on-demand market will continue to be a dominant industry. The future is bright for this Industry, and its growth potential is vast and promising.