The primary function of both encoder and transcoder is to retain the
video quality while converting to a different video format. However,
there is considerable loss of video quality based on technology used
for conversion. Video encoders are available in the form of software
and hardware based encoders. Hardware based video encoders primarily
find application among broadcasting and cable operators due to its
specialized encoding capabilities in video conversion. Video encoders
enable broadcasters to reduce network congestion and allow high data
bandwidth that can be further utilized for other purposes. Software
based video encoders provide many codecs to customize bit-rate and
video quality. Also, it is easy to upgrade software encoders as
compared to hardware encoders. However, the cost of hardware based
encoder is high when compared to software based encoder due to the
high latency speed characteristic in software encoder. The same
applies to software and video based transcoder solution.
A typical example of hardware based video transcoding is computer
based graphic card. Graphic card used for gaming purposes works as a
transcoder to convert compressed video into high quality video gaming
output. Furthermore, the demand for video transcoder is expected to
increase owing to high demand for multiscreen video services.
Multiscreen video means transformation of video content into multiple
video format having different resolutions and bit-rates for devices
such as TV, smartphone, tablet and personal computer. Additionally,
introduction of high efficiency video coding (HEVC) or H.265 is
anticipated to boost the demand for video transcoders among network
operators and media companies in the coming years.
Another key aspect with respect to this market is that the demand for
software based video encoder and transcoders would increase owing to
the increase in adoption of cloud technologies. Some of the software
providers have currently started providing these services through
cloud model. However, the key challenge for the market lies in the
replacement of old hardware based encoders and transcoders with new
technology based products. This challenge can be specifically
witnessed in media and entertainment, and telecommunication industry
as it is difficult to replace the equipment frequently due to its
high initial cost.
The application of video encoding and transcoding is expected to
increase in education, media and entertainment, telecommunication,
broadcasting, IT and gaming. The market can be segmented on the basis
of type into hardware and software based solution.
Some of the key global video encoder and transcoder providers in the
market are Intel Corporation, Encoding.com Inc., NVIDIA Corporation,
Imagine Communications Corporation, VBrick Systems, Inc., Wowza Media
Systems, LLC, ActiveVideo Networks, Inc. and HaiVision Systems, Inc.
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competitive landscape.
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