The global video on demand service market is estimated to be valued at US$81,389.2 million in 2021, and is expected to exhibit a CAGR of 7.6% between 2021 and 2028, Coherent Market Insights revealed in its latest report. In 2020, on the country level, the United States accounted for the largest share of 7% in the global video on demand service market and is expected to be valued US$24,737.7 million by 2028. This is owing to fact that the leader operating in the market holds major market share in the United States such as Netflix, Amazon, etc.
That is why, regarding territories, North America held a dominant position in the global video on demand service market in 2020, accounting for 34.4% share in terms of value, followed by Western Europe and Asia Pacific, respectively. In order to gain a significant advantage in the market, major companies are focused on product launches, in order to enhance the product portfolio. At the same time, some other major market players are involved in merger and acquisition activities. Entertainment is the major driver for adoption of VOD services; news, sports, and devotional content are some other avenues driving VOD services market growth.
According to the report, requirement of high-bandwidth is expected to restrain growth of the global video on demand service market during the forecast period. Streaming videos online requires high bandwidth with uninterrupted streaming and buffering, especially when streamed in high definition. Many end-users often face issues related to slow connection and bandwidth, which in turn, reduces the adoption of VOD services.