The broadcast, cable, and telco TV segments of worldwide video server markets are all growing at a healthy pace, and total revenues are expected to reach $1.5 billion in 2013. Of the three, the telco TV market is showing the strongest growth, with a compound annual growth rate of 28% over 2007-2013. Cable will experience a CAGR of about 13.5%, while broadcast markets show the slowest growth at 8%.

After a slow start in North America, telco TV is now growing quickly there as it is in the rest of the industrialized world. As the latecomer to the television distribution game, telco TV has the advantage of employing the most current technology and the least legacy infrastructure. This, in part, explains the stronger growth in this segment. The hardware side of the equation is largely commoditized; vendors aim for differentiation via the accompanying software applications.

Most video server vendors address at least two out of these three markets, and increasingly their goal is to offer an end-to-end platform. This plays to the advantage of some of the newer, larger, entrants to the market, such as Cisco, Sun, Motorola and Arris. They have the resources to fit these servers into larger, more comprehensive solutions. However Aima notes that, “Even the smaller, more specialized video server vendors are doing well in this buoyant market.”

A new study from ABI Research, “Video Server Market Analysis” examines current trends in the video server market, identifies market drivers and inhibitors, and profiles key players and their product offerings in the cable, telco and broadcast segments. Market share and pricing trend data are accompanied by regional and market segment forecasts.

It is a component of two ABI Research Services, Multi-Channel Video, and Digital Media.