According to the new research report, titled “Video Editing Software Market Forecast to 2027 - COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market is expected to reach US$ 3.04 billion by 2027, registering a CAGR of 5.9% during 2020-2027.
Commercial application segment of video editing software market to grow at highest CAGR
Many companies are conducting businesses online with the help of paid ads and social media posts. Videos play an integral role in businesses, particularly in the marketing world; thus, the use of video editing software becomes essential. Several users take advantage of video editing software for commercial projects such as post designing and video editing. The rising demand for graphic content for marketing campaigns leads to the increasing use of video editing software.
Commercial users include professionals who use high-end video editing software, which offers both pre-and post-production features, such as image stabilization accompanied by visual effects, templates, green screen, and color metering. Users seeking video editing software for broadcasting also include in the commercial segment. Players offering high-end video editing software for commercial uses usually provide sophisticated features with free demos and training, and sometimes they also make hardware recommendations, as the performance of the software is highly dependent on the hardware platforms. The growth of the commercial video editing software segment is attributed to the rising media & entertainment industry. A few of the video editing software used by professionals include Adobe Premiere Pro, Adobe Premiere Elements, Corel VideoStudio, Final Cut Pro X, Wondershare FilmoraPro, and Avid Media Composer.
The European box office revenues accounted for 22% of the global share in 2018. Although during the COVID-19 pandemic, the industry witnessed a downfall, and owing to this, the government and a few major players announced several plans to support independent production houses. For example, the BBC declared a plan to support the independent production sector in the UK. The country’s ITV also announced a development fund of US$ 615,000 to accelerate the discovery of innovative ideas and content for the channel, which is planned to broadcast in late 2020 and 2021. The French government too announced numerous measures, such as tax suspension, subsidies, solidary fund, and early repayment of tax credits. Other countries in the European Union (EU), including Germany, Hungary, Italy, and Poland, have also announced several plans to support the film industry's growth during the COVID-19 pandemic. Such factors are expected to moderate the impact of the COVID-19 crisis on the EU’s film industry, which will create demand for video editing software.
The penetration of social media in the France is moderate (~55%). However, France is the fourth largest country in terms of the number of internet users across the France’s region. The most popular social media platforms are YouTube and Facebook; also, Instagram is an emerging platform. Furthermore, the demand for OTT in France is increasing rapidly. In 2020, Netflix opened its new office in France, intended to increase its content roadmap; the company plans to add 24 new productions.
Key findings of the study:
• In India, both TV and OTT consumption is very high. The demand for OTT is further accelerating owing to the growing number of internet users across the country, coupled with the emergence of several TV channel players, e.g., Altbalaji, SonyLIV, and Zee5, into the OTT market. Furthermore, the number of social media users increased drastically in the past few years and influencer marketing in the country is also flourishing. Additionally, according to a report by the Mobile Marketing Association and GroupM, India ranks sixth position across the world in terms of video ads consumption. These factors create ample opportunities for content creators.
• Cloud-based video editing software allows individuals and professionals to edit videos and upload files remotely. Cloud-based solutions often enable users link with different web and web social for video sharing. The key driver for the adoption of cloud-based software is its accessibility to affordable solutions. The cloud-based video editing software is cheaper and easier to maintain than an on-premise solution. The user concentrates on video editing and the hosting company manages the updates and maintenance of the software. The growth of the cloud-based video editing software market is propelled by the increasing use of video editing software by social media influencers. Players such as ClipChamp, Animoto, and Renderforest offer video editing solutions for producers, who create short videos to be posted on social media.
• The media & entertainment industry in the US is the largest industry across the world. According to the International Trade Administration (ITA), box office receipts, including cinema advertising, was anticipated to surpass US$ 1 billion in 2019. Further, in 2019, TV and home video earnings were projected to reach US$ 96 billion. The ITA also stated that the streaming video on demand (SVOD) system is witnessing rapid expansion across the US. The industry also offers lucrative opportunities to international companies to set-up in the US by providing them film production tax incentives which is expected to drvie the growth media industry and subsequenltly the vide editing software market in th US region.