Video heads for custom silicon
The rise in demand for video services coupled with AI processing is driving operators to develop their own custom silicon.
This move for custom silicon for video processing follows moves over recent years where data centre operators have moved back to developing their own chips, and the custom video chips will sit alongside these devices.
The global video streaming market size was estimated at USD 106.83 billion in 2023 and is expected to grow at a massive annual rate of 21.5% from 2024 to 2030. Innovations such as blockchain technology and Artificial Intelligence (AI) are used to improve video quality. AI is playing an essential role in editing, cinematography, voice-overs, scriptwriting, and several other aspects of production and upload.
Many streaming service providers use AI to enhance video content quality and this is driving the need for more customised silicon.
“The technological demands across the Enterprise Video Streaming market are similar to those of the AI, Communications and Automotive markets, in that they require ultra-complex custom chips to handle their intensive processing needs,” said Graham Curren, founder of UK design house Sondrel.
It has won a major ASIC design and supply contract for a next generation video processing chip. The custom design will form a crucial part of high performance, professional video streaming with very low latency that delivers an enhanced, high quality user experience.
The design has started and will be fully funded by the customer. Chip production and supply are anticipated to start in 2026.
“We look forward to capitalising on our proven ASIC expertise and application experience to further expand our market reach to supply custom chips for companies wanting leading-edge solutions to innovate in these markets,” said Curren.
The growing adoption of cloud-based solutions to increase the reach of video content is positively influencing market growth, driven by Europe and North America according to a report by Grandview Research.
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The cloud segment accounted for the largest revenue share of more than 59% in 2023 with Asia Pacific is expected to see the highest annual growth from 2024 to 2030 and North America having the largest market share.
Streaming platforms have adopted cloud-based deployment to enable large bandwidth and enhanced speed. The capability of cloud-based deployment to handle more substantial data content along with providing a better viewing experience has promoted several streaming service providers to choose cloud-based deployment over on-premises. Moreover, cloud scaling helps in increasing the bandwidth and dealing with buffering and latency issues. Since most enterprises don’t have the networks and infrastructure capable of handling heavy traffic in online streaming, there is a huge demand for cloud-based deployment in the video streaming process.
In the education and academic sector, videos can be effectively used in webinars and courses to enhance teaching and learning processes. Visual recordings have a powerful impact on students’ ability to retain information. Therefore, schools, universities, and colleges are now creating multimedia content and delivering it in the form of video presentations. Factors such as easy access to educational video content, growing demand for mobile devices, and increasing availability of the internet are positively influencing the adoption of live video streaming services for educational purposes.
Features such as 360-degree video streaming and virtual reality (VR) are transforming the way consumers consume and interact with video content, opening new opportunities for education, entertainment, and even virtual tourism, says the report.
GrandView Research Video Streaming Market Size, Share & Growth Report, 2030
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