The global Video on Demand (VOD) market is expected to reach $263 billion by 2016, up 27% from $207 billion in 2014, according to a recent report by Future Market Insights (FMI).
Rising popularity of on-demand services among consumers and proliferation of internet in emerging nations is expected to fuel the global VOD market.
Popularity of pay TV services, especially digital cable services, is increasing on account of deployment of 4K Ultra HD technology. Pay TV service providers are focusing on clubbing several advanced technologies, such as ITV and DVBS-2 based MPEG-4 video format with HD DTH. Integration of these technologies has given consumers a broad array of options to choose from, increasing the pay TV subscriber base.
Asia Pacific, which currently has a 13% share in the global VOD market, is expected to represent over 22% market by 2020.
FMI expects Asia Pacific to surpass Western Europe as the second-largest VOD market after North America by 2020.
The VOD market in Asia Pacific Excluding Japan (APEJ) is expanding at a robust pace and by 2020, the market is expected to reach $80.5 billion. Strong demand for pay TV services is expected to fuel the market in APEJ in the next five years.
Proliferation of internet and rising smartphone ownership are also expected to drive the adoption of VOD services. China and India, two of the fastest growing economies, are witnessing high demand for smartphones, a key factor contributing to the demand for VOD services.