Streaming software market to hit $26 billion as AI tools surge
The Video Streaming Software Market is projected to reach $26.13 billion by 2031, growing at a 13.6% CAGR, driven by OTT growth and demand for live streaming. AI video workflow tools are seeing the fastest growth, alongside advancements in low-latency and ultra-low latency streaming technologies. North America is expected to lead the market, with mobile/handheld devices predicted to have the largest market share in consumption mode.
Key Takeaways
- AI video workflow tools represent the fastest-growing segment with a projected 21.1% CAGR through 2031.
- Connected TV (CTV) and streaming platforms are forecast to command a $9.86 billion market share by 2031.
- Live streaming software is expected to grow at 15.6% annually, driven by sub-second latency requirements for gaming and betting.
- Asia Pacific is the fastest-growing regional market, while North America is expected to maintain its overall revenue lead.
- Mobile devices are anticipated to hold the largest market share in terms of consumption mode and device type.
Why It Matters
The shift from legacy on-premises servers to hybrid cloud architectures is now a baseline requirement for scaling high-concurrency workloads. Platforms are increasingly prioritizing AI-powered localization and low-latency protocols like WebRTC and Low-Latency HLS to capture global audiences with minimal playback delay. For the broader ecosystem, this signals a transition where streaming software is no longer just about delivery, but about integrated ‘intelligent’ layers for real-time engagement and automated content adaptation. Market participants should monitor the adoption rate of AI-enabled dubbing and vertical video formats, which are specifically becoming differentiators in the highly competitive North American and mobile-first markets.
Additional Context
The projection of a $26.13 billion software market aligns with a broader industry shift toward AI-centric infrastructure. Per Fora Soft (October 2025), approximately 78% of the top-100 streaming services had deployed at least one AI-powered feature by late 2025, moving from simple recommendation engines to full-stack AI architectures for ingest, transcoding, and real-time moderation. This technological maturation coincides with streaming officially overtaking traditional linear TV in total viewership; according to Nielsen (May 2025), streaming accounted for 44.8% of total U.S. TV usage, creating an urgent need for software that can manage the resulting massive concurrent traffic.
Recent high-profile deployments highlight the demand for the ultra-low latency the MarketsandMarkets report emphasizes. In June 2026, Lenovo announced a near real-time AI infrastructure for the FIFA World Cup, utilizing intelligent edge delivery to reduce IPTV delays to under five seconds—a critical threshold for global sporting events. Furthermore, per Streaming Media (March 2026), AI applications in localization and advertising have moved from proof-of-concept to full commercial implementation, exemplified by 3Play Media's AI dubbing solutions and Amazon Prime Video's multi-language AI audio tracks. These infrastructure investments are increasingly necessary as video is expected to account for 82% of all global internet traffic by the end of 2026.
Read full article at moomoo.com
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