Broadcast and streaming video equipment revenue will reach $2.3 billion by 2018, said Infonetics Research, an IHS company.
The broadcast and streaming video equipment revenue declined 4 percent to $810 million in the first half of 2014, said Infonetics Research.
In H1 2014, sales of video-on-demand (VOD) playout servers rose 20 percent as operators in China and the Middle East continue to drive spending.
Content delivery network (CDN) edge server revenue is expected to grow at a 14 percent CAGR from 2013 to 2018, and multiscreen broadcast encoders are expected to grow moderately.
Despite the sluggishness in the first half of 2014, streaming video and broadcast equipment revenue for the full-year 2014 will grow slightly.
“The cost of encoding and transcoding platforms continues to come down, pressuring video and broadcast equipment revenue as pay-TV providers move to generic hardware platforms and, ultimately, network functions virtualization (NFV) rather than dedicated platforms,” said Jeff Heynen, principal analyst for broadband access and pay TV at Infonetics Research.
“This is a long-term shift that will keep video revenue from growing more significantly, despite the fact that pay-TV providers must fundamentally alter their video processing environments to support linear, over-the-top (OTT) and multiscreen content that continues to grow exponentially,” Heynen said.
