Client software is the fastest growing software category within the video infrastructure software market, followed by headend software, according to Synergy Research Group.
They have grown by 10%-20% in the past year while the third major category, content security, has actually declined. In total the video infrastructure software market has grown by 7% on rolling year-on-year basis. Some individual sub-segments have grown by well over 30%, including TV Everywhere, search & recommendation and cloud PVR software.
In a market that is now generating annual revenues in excess of $5.5 billion, Cisco is the leader with a 20% market share in Q2 2014, followed by Nagra, Arris, Rovi, Ericsson, Irdeto, Accenture and TiVo. Since Q2 2013 Ericsson has gained the most market share due to its acquisition of Microsoft’s IPTV/middleware business. The next biggest market share gainer is Nagra whose growth was also assisted by M&A activity, in this case the recent acquisition of content security specialist Conax.
“Trends in OTT, cloud and service delivery models are all driving an increased focus on video infrastructure software” said John Dinsdale, a Chief Analyst and Research Director at Synergy Research Group.
“We forecast that over the next five years revenues from video infrastructure software will grow steadily. Excluding content security, annual percentage growth will be in double digits and some segments, such as TV everywhere, cloud PVR and search & recommendation will grow extremely rapidly.”