Video streaming software market projected to reach $26.13B by 2031
MarketsandMarkets predicts the video streaming software market will reach $26.13 billion by 2031, growing at a 13.6% CAGR, primarily driven by OTT growth and demand for live streaming software. Key growth areas include AI video workflow tools (21.1% CAGR), live streaming (15.6% CAGR), and CTV/streaming platforms, with North America leading the market. The report highlights trends like the shift to cloud architectures, the importance of low-latency streaming, and the integration of AI for localization and content optimization.
Key Takeaways
- AI video workflow tools represent the fastest-growing sub-sector with a projected 21.1% CAGR through 2031
- Connected TV and streaming platforms are expected to command the largest market share by device, totaling $9.86 billion by 2031
- Live streaming software is forecast to grow at a 15.6% CAGR, trailing only AI tools in expansion speed
- North America currently leads the market, while the Asia-Pacific region is cited as the fastest-growing geographic segment
Why It Matters
The shift toward cloud-native architectures is accelerating as media entities move away from legacy on-premises servers to support high-concurrency workloads. For the streaming ecosystem, this indicates a transition where software—not hardware—is the primary driver of specialized features like sub-second latency and automated localization. The aggressive growth forecast for AI tools confirms that operational efficiency through automated dubbing and metadata generation is now a baseline requirement for global scaling. Watch for whether regional APAC infrastructure can keep pace with its projected growth as mobile-first consumption demands higher bitrate stability at the edge.
Additional Context
The software market's expansion coincides with a broader consolidation and capability upgrade among major infrastructure providers. Per Akamai’s March 2025 reporting, the company integrated over 100 new customer contracts following the acquisition of Edgio’s assets, significantly stabilizing its delivery revenue which had previously faced a 15% year-over-year decline in 2024. This consolidation highlights a push for predictable pricing and multi-year contracts within the content delivery network (CDN) segment as infrastructure becomes more commoditized and integrated into broader cloud-plus-edge stacks. Simultaneously, vendors are embedding advanced processing directly into the edge. Per SiliconAngle, April 2024, Akamai introduced NVIDIA-based GPU encoding services at globally distributed edge locations, claiming speeds 25 times faster than traditional CPU-based processing. Similarly, per TV Technology, January 2025, Brightcove officially launched its AI Content Suite after a year-long pilot, focusing on automated content creation, metadata optimization, and translation to help creators manage higher volumes of short-form content. Infrastructure providers are also marking major scaling milestones. Per Amazon, September 2025, AWS Elemental reached its 10-year anniversary by highlighting that its media services now support over 1,500 customers globally, including high-scale deployments for Tubi and Peacock’s 2024 Olympics coverage. These developments suggest that while the software market grows, the competitive landscape is shifting toward providers who can offer deeply integrated AI and ultra-low latency capabilities as standard features rather than premium add-ons.
Read full article at aijourn.com
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