PUBLISHER: Orion Market Research | PRODUCT CODE: 1296906
PUBLISHER: Orion Market Research | PRODUCT CODE: 1296906
Global media and entertainment market is growing at a significant CAGR of 8.5% during the forecast period (2022-2030). The media and entertainment industry is driven by the growing digitalization and access to online media platforms. Rising internet penetration and rising demand for online and on-demand videos owing to the considerable adoption of smartphones and tablets are some crucial factors boosting the growth of the market. Most sports events or any other large events are live-streamed. Apart from this, many social media platforms, such as Facebook, and Instagram are providing the facilities to individuals for live video streaming. It is a new feature that is being adopted by a significant number of individuals across the globe.
In addition, the events and trade shows contribute considerably to the growth of the media and entertainment market. The sports industry is one of the largest entertainment industries with the most popular sports and teams showcasing a positive impact on the global economy. However, the outbreak of the COVID-19 pandemic will certainly affect the market growth in 2020 and a half phase of 2021. The offline media and entertainment platforms, such as events, trade shows, and amusement parks will see a decline in revenue in 2020. This is due to rapidly changing circumstances which have compelled the government to impose a ban on all activities that involve social gatherings. The first step taken by the government of almost all the developed and emerging economies, which includes the US, China, India, the UK, and Germany, was to shut down theaters, live events, and amusement parks. However, due to this major crisis across the globe that has forced people to stay at home, the overall TV usage has raised in comparison with historical times. This has positively impacted the online video streaming vertical in the entertainment industry, which, therefore, is projecting considerable growth due to the outbreak of the pandemic.
The media and entertainment market is bifurcated into two types, namely online platforms and offline platforms. The online/digital platform media and entertainment market includes television, radio & music, digital signage, theatrical productions, gaming, video streaming, and others. The offline platform media and entertainment market include events and trade shows, amusement parks, and others. Based on online/digital platforms the digital signage segment is anticipated to grow at a significant rate. Digital signage is transforming the information and media sectors by permitting the central and quick update of content and instantaneous distribution of information to audiences in precise locations. The market is driven by the rising trend of digital signage in the commercial sector coupled with the continuous deployment of advanced technologies in the market, which includes 4K and 8K displays. Moreover, some groups and initiatives across the globe are calling for interoperability to enable the rollout of large-scale digital signage networks, foster innovative applications, and avoid vendor lock-in.
The online/Digital segment is Projected to Hold a Considerable Market Share
Online/digital platform is estimated to project a considerable CAGR in the media and entertainment market during the forecast period. This growth can be accredited to the continuous rise in demand for video streaming platforms across the globe. A shift towards online video watching coupled with the development of digital infrastructure has escalated the demand for online video streaming platforms. In addition, video streaming companies are coming up with new solutions to increase their subscribers across the globe. For instance, Netflix launched a Google Chrome browser extension named Netflix Party which allows users to access the video in groups and watch them together.
The global media and entertainment market is further segmented based on geography, including North America (the US and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa and Latin America). The market can be analyzed for a particular region or country level as per the requirement. Among these, North America holds a significant share of the global media and entertainment market. The US plays a critical role in the geographic contribution of North America in the global media and entertainment market, attributing to the existence of the most popular amusement parks, theatrical and film productions, sports, and live events and trade shows. Moreover, the market players show a keen interest in providing their services to the developed markets, considering the US as its predominant country, which in turn, drives the market growth in North America. Several video streaming companies have their headquarters in the country. Google's YouTube, Netflix, Amazon's Prime Video, and Hulu are some of the major video streaming providers in the country. In addition, the US largely contributes to the growth of the online platform of the media and entertainment market, as the country significantly adopts digital signage across various locations such as restaurants, airports, and shopping malls.
Asia-Pacific is expected to propel with a considerable growth rate in the global market
Asia-Pacific is estimated to project a considerable CAGR in the global media and entertainment market. Countries in Asia-Pacific that are contributing to the market growth include China, India, and Japan. China is one of the fastest-growing film industries, globally. By 2020, China is expected to exceed North America as the world's largest industry in box office revenue. The value has been driven by the cohesive policies and emergence of the new players in the film industry. In addition, the Indian media and entertainment industry registered a CAGR of more than 10.9% during 2018 and is expected to grow at a CAGR of 13.1% during 2018-2023 and is projected to hit $39.6 billion in 2023 from $22.2 billion in 2018, as per the Indian Brand Equity Foundation (IBEF). The next decade is expected to witness significant evolution through digital technologies which will increase their influence across the industry-leading to a change in consumer behavior across the segments. Therefore, the media and entertainment market is expected to see significant growth in Asia-Pacific during the forecast period.
Market Players Outlook
The key players in the media and entertainment market are contributing significantly by providing advanced technology-based products and expanding their geographical presence across the globe. The key players operating in the global media and entertainment market include Warner Bros, Sony Pictures Entertainment Inc., Walt Disney Studios, Paramount Pictures, Netflix Inc., and Apple Inc. These market players adopt various strategies such as product launches, partnerships, collaborations, mergers, and acquisitions to sustain a strong position in the market. For instance, in September 2019, Apple Inc. launched Apple TV+, an original video subscription service in over 100 countries and regions.