As media gets digital, demand for compression of video to deliver it at low bit rates without compromising on quality, is on the rise. The video encoders market is evolving to meet the demands of all applications with efficient technologies to compress video for seamless distribution across all media at competitive prices.

Frost & Sullivan (http://www.ITservices.frost.com ) reveals that revenues in this industry fell a little shy of $500 million in 2005 and is estimated to reach nearly $2 billion in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants an overview of the latest analysis of the World Video Encoders Market, then send an email to Mireya Castilla, Corporate Communications at mireya.castilla@frost.com with your full name, company name, title, telephone number, fax number and email. Upon receipt of the above information, an overview will be sent to you by e-mail.

"Broadcasters have been spurred by Government mandate to shift from analog to digital broadcasting; as a result, upgrade of headend infrastructure in order to eventually transmit high definition (HD) content has become necessary," explains Frost & Sullivan Research Analyst Vidya.S.Nath. "Besides, digital video content has penetrated enterprise markets such as corporate networks, distance learning, houses of worship, universities, and government networks, as a result of increasing broadband utilization and availability of high speed Internet."

The entry of telecom operators to provide video services through Internet protocol television (IPTV) has further heightened demand for video encoders, as this application requires appropriate bandwidth management, even while delivering broadcast video quality. Similarly, video-to-mobile is an emerging market application that requires bit-efficient compression technologies. In addition to mass media, video is also used as an effective tool as part of the digital signage in private networks.

Although this market is set to grow steadily, it is becoming increasingly commoditized, as it has more than 20 vendors worldwide. Also, as more vendors are emerging, competition based on price and technology is on the rise. As the product ranges grow wider and more disparate in relation to the price range, educating the consumers on the exact requirements of their applications is essential.

"Choosing appropriate equipment has become a challenge for telco service operators, as the video services they aim to deploy over IP networks require right equipment to deliver broadcast quality video at low-bit rates," explains Nath. "In contrast, cable and satellite operators are burdened by incumbent systems that prevent them from adopting advanced format encoders thus dropping the unit shipment rate."

Digital media technologies such as encoding and streaming enable improved flexibility and speed. Vendors need to emphasize the cost benefits of a digitized environment to the broadcasters to win them over and also ensure that government deadlines are met. Proper education of consumers on the manifold advantages of utilizing video encoders will result in rise in the growth and revenue potential of this market.

World Video Encoders Market is part of the Digital Media subscription, which evaluates the broadcast terrestrial and cable, direct broadcast satellite (DBS), and IPTV services deployed largely by telcos, and enterprise and "out-of-home" or private networks application segments. This study analyzes demands of application segments, market drivers, and industry challenges with strategic recommendations offered to participants. It also includes technological and market trends and pricing and revenue forecasts based on application segments as well as global geographic trends. Analyst interviews are available to the press.

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