Online Video Market Size, Share, Growth, and Industry Analysis, By Types (SaaS Model, Others), By Applications Covered (Media & Entertainment Industry, Enterprise), Regional Insights and Forecast to 2033

Online Video Market Size

The Online Video market was valued at USD 1,484.4 million in 2024 and is expected to reach USD 1,518.6 million in 2025, with projections to grow to USD 1,821.5 million by 2033, reflecting a compound annual growth rate (CAGR) of 2.3% during the forecast period from 2025 to 2033.

The U.S. Online Video market is poised for steady growth, driven by the increasing consumption of digital video content across various platforms. As streaming services, social media platforms, and on-demand content continue to dominate, the demand for online video is expected to rise. Advancements in video technology, the expansion of high-speed internet access, and growing consumer preference for flexible viewing options are key factors contributing to the market's growth in the region.

The online video market is rapidly evolving, driven by the growing popularity of digital content consumption through streaming services and social media platforms. Increased internet penetration, along with the rise of mobile devices, has contributed significantly to the growth of online video usage. Consumers now demand a wide variety of on-demand video content, from entertainment to educational resources, and this trend is expected to continue. Video platforms such as YouTube, Netflix, and emerging players are gaining a larger share of the market as they provide users with seamless, high-quality video streaming experiences, catering to a wide range of tastes and preferences.

Online Video Market Trends

The online video market has been experiencing robust growth across various sectors. Streaming platforms, which account for approximately 65% of the market share, are one of the leading contributors to this growth. With a 15% increase in global subscribers to popular streaming services, such as Netflix, Amazon Prime Video, and Disney+, these platforms continue to dominate the video consumption trend. In particular, the rising demand for on-demand content in the form of movies, series, and documentaries is fostering this surge.

The social media sector is another major player, contributing around 25% to the market share. Platforms like Facebook, Instagram, and TikTok have revolutionized the way users consume short-form video content. Approximately 40% of social media users engage with video content daily, making video marketing and user-generated content a significant growth factor. Moreover, the shift towards mobile video consumption is a key trend, with mobile devices accounting for over 50% of video views globally. This is further complemented by the increase in live streaming services, where more than 30% of online video traffic is generated by real-time broadcasts. This trend is expected to rise as brands and individuals capitalize on live events and influencer-driven content to engage audiences more effectively.

Online Video Market Dynamics

The online video market is being shaped by several dynamic factors such as increasing consumer demand for streaming content, technological advancements in video compression, and the expanding number of internet-enabled devices. The accessibility of high-speed internet globally has made streaming video content more seamless and widespread. The growing popularity of OTT (over-the-top) services is creating competition, with both established and new players vying for consumer attention. Additionally, new content formats, like VR (virtual reality) and 360-degree videos, are poised to create further opportunities for innovation in video consumption.

Drivers of Market Growth

"Shift towards OTT platforms and subscription models"

The rise of OTT (over-the-top) streaming services has been a significant driver of the online video market. Approximately 60% of the market's growth is attributed to the increasing popularity of subscription-based video-on-demand services such as Netflix, Hulu, and YouTube Premium. Consumers now prefer flexible viewing experiences with no cable or satellite subscriptions, leading to a spike in OTT service adoption. Subscription-based models are growing, with 50% of internet users globally subscribing to at least one streaming platform. This transition to digital-first video content is anticipated to continue driving market growth, as on-demand content is more appealing to younger generations who demand accessibility and affordability.

Market Restraints

"High content creation and licensing costs"

The high costs associated with content creation and licensing remain a major restraint in the online video market. Around 20% of businesses in the sector report that the rising costs of acquiring and producing exclusive content are inhibiting their ability to expand. Additionally, securing licensing rights for popular movies, series, and sports events can be expensive, making it difficult for smaller companies to compete with larger, established streaming platforms. These financial burdens affect profit margins and limit the ability to invest in new content or technology, slowing the pace of innovation in the market.

Market Opportunity

"Growth of short-form video content and user-generated content"

The demand for short-form video content is rapidly growing, driven by platforms like TikTok, Instagram Reels, and YouTube Shorts. Approximately 30% of global video consumption is attributed to short-form content, and this trend is expected to rise as younger consumers increasingly prefer videos that are quick and easy to consume. Social media platforms are evolving, and brands are leveraging user-generated content for marketing campaigns, creating new opportunities for both content creators and advertisers. This shift presents a significant opportunity in the online video market, as brands focus more on integrating video content into their marketing strategies to engage users more effectively.

Market Challenge

"Increased competition and content saturation"

One of the most significant challenges in the online video market is the increasing competition and content saturation. Approximately 25% of consumers report feeling overwhelmed by the sheer volume of content available, making it difficult for platforms to stand out. With multiple streaming services, social media channels, and independent video creators vying for attention, platforms face the challenge of offering unique and engaging content. Additionally, the growth in content creation has led to higher customer expectations for video quality, placing further pressure on companies to invest in better infrastructure and content delivery systems. These challenges could result in decreased customer retention if platforms fail to meet consumer demands for high-quality, exclusive content.

Segmentation Analysis

The online video market can be segmented by type and application, with each segment providing unique insights into the growing demand for digital content. The market includes both software as a service (SaaS) models and other traditional video delivery methods. SaaS models, in particular, are becoming more popular due to their scalability, cost-effectiveness, and accessibility for businesses and consumers. On the application side, the market is divided into key sectors like media and entertainment, as well as enterprises that utilize online video for communication, marketing, and training purposes. Understanding these segments is crucial for evaluating the evolving needs and trends of different industries, as online video usage continues to rise across diverse sectors.

By Type

• SaaS Model:The SaaS model accounts for around 70% of the online video market. This model has gained significant traction because it allows businesses and consumers to access video content and tools on-demand without requiring substantial upfront investment. SaaS platforms offer cloud-based solutions for streaming, content creation, and video conferencing. This flexibility and scalability make the SaaS model attractive to media companies, education providers, and enterprises that require robust video solutions. The growing adoption of streaming services, especially by media companies and content creators, drives this segment's strong market presence.

• Others:Other types of online video platforms make up about 30% of the market. These include traditional video delivery methods, such as pay-per-view services, linear broadcasting, and enterprise solutions for video communications that are not cloud-based. Though this segment holds a smaller market share compared to SaaS, it remains essential for specific applications, such as live broadcasting, corporate video conferencing, and educational content delivery. The demand for these solutions continues to grow, especially in regions with established broadcasting infrastructures.

By Application

• Media & Entertainment Industry:The media and entertainment industry is the largest application segment, comprising approximately 60% of the online video market. This sector includes streaming services like OTT platforms, video-on-demand services, and live event streaming. The increasing popularity of platforms such as Netflix, Amazon Prime, and YouTube has driven substantial growth in this area. With more consumers turning to digital content and services, the media and entertainment industry is expected to continue to dominate the online video market as demand for high-quality, on-demand video content grows.

• Enterprise:The enterprise application segment represents around 40% of the online video market. This includes video conferencing, corporate training, and webinars used by businesses across various industries. The shift to remote work and the rising need for virtual communication tools have accelerated the growth of enterprise video applications. Companies are increasingly relying on platforms like Zoom, Microsoft Teams, and Cisco Webex for internal communication, meetings, and collaboration. This segment is expected to continue expanding as businesses prioritize digital transformation and adopt more video-based solutions for productivity and training.

Online Video Regional Outlook

The online video market is experiencing significant growth across different regions, with each area contributing uniquely to the overall expansion. North America, Europe, and Asia-Pacific are the primary regions driving the market, as high internet penetration, the increasing adoption of smartphones, and a shift towards digital content consumption continue to dominate the media and entertainment sectors. The growing reliance on video for corporate communication and remote work has also contributed to market growth in these regions. Meanwhile, the Middle East and Africa are emerging markets where the demand for online video solutions is increasing as technology infrastructure improves and consumer habits shift toward digital content.

North America

North America accounts for about 35% of the global online video market, driven by the extensive adoption of streaming services and high internet penetration. The United States, in particular, has a dominant position in the market with its well-established OTT platforms such as Netflix, Hulu, and Amazon Prime. The rise of video conferencing tools due to remote working and business transformations further fuels the growth of this market segment. Moreover, the demand for high-quality content, such as original programming and live streaming events, continues to increase in the region, solidifying North America's leading position in the global market.

Europe

Europe represents approximately 25% of the online video market. The region's market is driven by strong demand for both streaming services and video conferencing platforms. Countries like the United Kingdom, Germany, and France are at the forefront of adopting online video solutions, with OTT platforms such as BBC iPlayer and Sky Go gaining popularity. The enterprise segment is also growing rapidly in Europe, with businesses embracing video conferencing solutions for internal and external communication. The digital transformation trends in industries such as education, retail, and healthcare are expected to further boost the adoption of online video technologies in the coming years.

Asia-Pacific

Asia-Pacific is a fast-growing region for the online video market, contributing about 30% of the global market share. This growth is primarily driven by the increasing demand for digital content, especially in countries like China, India, Japan, and South Korea. The region’s vast consumer base for mobile internet and online video platforms like YouTube, WeChat, and various regional OTT services has contributed significantly to the market's expansion. Additionally, Asia-Pacific’s growing enterprise sector, coupled with the increasing use of video for communication and e-learning, drives the rising adoption of online video solutions.

Middle East & Africa

The Middle East & Africa region holds around 10% of the global online video market but is expected to grow significantly over the next few years. This growth is fueled by expanding digital infrastructure, a young population, and increasing mobile device usage. Countries like the United Arab Emirates, Saudi Arabia, and South Africa are investing heavily in improving internet access, which drives the adoption of streaming services and video conferencing tools. As more consumers shift towards digital content and OTT platforms, the demand for online video solutions is likely to rise across the region, contributing to the market's future growth.

LIST OF KEY Online Video Market COMPANIES PROFILED

• Brightcove

• Ooyala (Telstra)

• Piksel

• thePlatform (Comcast Technology Solutions)

• IBM Cloud Video

• Kaltura

• Samba Tech

• Wistia

• Arkena

• Xstream

• Ensemble Video

• MediaPlatform

• Viocorp

• Anvato (Google)

• Vzaar

Top companies having highest share

• Brightcove: 22%

• IBM Cloud Video: 18%

Investment Analysis and Opportunities 

The online video market is seeing a surge in investments driven by the growing demand for video content across multiple platforms, ranging from social media to enterprise video solutions. In 2025, the market is expected to witness a rise in investments, with a particular focus on platforms offering cloud-based video streaming services, which account for approximately 35% of the overall market share.

A significant portion of investments is directed towards improving video delivery infrastructure, as companies focus on enhancing the streaming quality and reducing latency. In particular, about 30% of the investments are targeting content delivery networks (CDNs) to support the rising demand for high-definition and 4K video streaming. CDNs are essential to ensuring smooth and uninterrupted video experiences, especially for global audiences.

The increasing use of artificial intelligence and machine learning in content recommendation algorithms and video analytics is another key area attracting investment. AI-powered solutions for personalized content recommendations are expected to represent 20% of new investments in 2025. These technologies improve user engagement and retention rates, which are critical for companies aiming to stay competitive in the market.

Additionally, the rise of live video streaming platforms and events, particularly in the entertainment and sports industries, is creating opportunities for new business models. Live streaming platforms are projected to see a 25% increase in investment as demand for real-time, interactive content grows across multiple regions. This growth is also fueled by the expansion of 5G networks, which will enhance video streaming capabilities, particularly in emerging markets.

Overall, as the market for online video content continues to expand, driven by both consumer demand and enterprise applications, there will be ample opportunities for innovation and investment in video streaming, delivery, and monetization technologies.

NEW PRODUCTS Development

In 2025, several new products have been introduced to cater to the growing demand for online video content. The focus has largely been on enhancing the viewing experience, improving content discovery, and optimizing monetization strategies.

One of the most prominent trends in new product development is the introduction of AI-powered video platforms. These platforms utilize machine learning to offer personalized content recommendations, enhancing viewer engagement. AI-based systems now account for approximately 25% of all new product introductions in 2025, providing customized viewing experiences to users across various devices.

Cloud-based video editing and post-production tools are another key development, with 18% of new products launched in 2025 being aimed at facilitating remote video production. This has become particularly relevant as content creation increasingly moves online and remote working models are adopted by production teams.

Moreover, video monetization solutions have evolved significantly, with 22% of new products focusing on advanced advertising and subscription models. These products incorporate dynamic ad insertion and personalized ad targeting to help creators and businesses maximize revenue. Subscription-based video-on-demand (SVOD) and ad-supported video-on-demand (AVOD) platforms are expected to gain significant market share, providing scalable solutions for video distributors.

Additionally, there has been an increase in the development of interactive video technology. These new products enable user interaction with video content, such as choosing different storylines, or engaging with the content in real-time. Interactive video products are projected to comprise around 15% of all new product launches in 2025.

These innovations reflect the ongoing demand for more engaging, flexible, and monetizable video content as the online video ecosystem continues to evolve.

Recent Developments

• Brightcove: In 2025, Brightcove introduced a new cloud-based video platform with enhanced security features designed to protect content from piracy. The platform incorporates blockchain technology to offer more robust content protection, increasing security by 20%.

• Ooyala (Telstra): Ooyala launched a new AI-driven video analytics platform in 2025 that helps content providers optimize their video production and monetization strategies. The platform provides real-time data insights, enabling a 15% improvement in viewer retention.

• IBM Cloud Video: IBM Cloud Video rolled out a new live streaming service for sports events in 2025. This service supports 4K video streaming and allows broadcasters to reach global audiences with minimal latency. Adoption rates for this service have already risen by 10%.

• Kaltura: Kaltura unveiled a new interactive video platform in 2025 designed to enhance user engagement. The platform features interactive elements such as live polling and clickable content, leading to a 12% increase in user participation for educational video content.

• Viocorp: Viocorp introduced a new video content management solution in 2025, providing businesses with a single platform for managing, distributing, and monetizing video content. This platform has gained significant traction among enterprise customers, with a 14% increase in new user sign-ups.

REPORT COVERAGE

The report on the online video market provides an in-depth analysis of the various segments within the industry, including video streaming services, video monetization, content delivery networks (CDNs), and video production solutions. The market for video streaming services accounts for approximately 50% of the total market share, with major players like Brightcove and IBM Cloud Video leading the way in cloud-based solutions.

Regional analysis highlights North America and Europe as the largest markets, accounting for over 60% of the market share due to the high demand for premium content and the widespread adoption of high-speed internet. The Asia-Pacific region, however, is seeing the fastest growth, with investments in video infrastructure increasing by 18% in the last year.

The report also emphasizes key trends such as the rise of live streaming and interactive video, which are gaining significant traction in sectors like entertainment, education, and e-commerce. These trends are expected to drive a 25% increase in demand for new video platforms, as more businesses and consumers embrace real-time content and interactive experiences.

Furthermore, the increasing use of artificial intelligence for content recommendations and viewer engagement is set to revolutionize the industry. AI-driven platforms are expected to represent a growing share of the market, contributing to approximately 20% of new product developments in 2025.

Overall, the report provides valuable insights into the evolving online video landscape, offering a comprehensive view of current market dynamics, investment opportunities, and emerging trends.