Alongside the surge in the streaming services industry on the entertainment spectrum comes news of significant growth in the use of digital video marketing content, evolving the needs for video production services, particularly as brands gather behind animation to promote and sell their products and services to increasingly sophisticated consumers.
Soaring demand for promotional videos
The foremost propositions driving the demand for video production services include easier access to state-of-the-art equipment, flexibility, and camera skills. North America presently dominates the production services market—attributable to the extensive dominance of IT infrastructure—according to the report “Video Production Services Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2019 – 2027” by Transparency Market Research.
Falling under the over-the-top (OTT) media category—media services offered directly to viewers via the Internet—video marketing, best combined in fully integrated campaigns with trusted partners such as 12handz.com, bypasses cable, broadcast, satellite television channels, and other “middle-men”, helping enterprises boost their subscriber base directly.
The rapid growth of the e-commerce industry, meanwhile, is bringing a soaring demand for promotional videos enabling e-commerce companies a deeper engagement with their customers over a longer period. The Asia Pacific region is estimated to expand at a higher compound annual growth rate (CAGR) in this space, headed by India, China, Japan, and Australia, key countries that service video production in the market in the region.
E-commerce industry in India will top value of $188 billion by 2025
The Indian Brand Equity Foundation, for example, estimates that by 2025, the e-commerce industry in India will top a value of $188 billion, an increase from $50 billion in 2018. As Internet penetration grows in the region and the trend for short films, social networking videos, and OTT services accelerates, the market for video production services is set to increase even further. In 2018, Internet penetration in India was around only 39.2%.
The video production services market can be cleaved into promotional, corporate, training, and entertainment, with the entertainment segment anticipated to account for the lion’s share of the market for the foreseeable future. The promotional video segment, however, is expected to expand with the highest CAGR as e-commerce accelerates the demand for digital promotional videos.
Key players in the global video production services market include Vital Design Armaan Productions, FILM CREATIONS, LTD., VIDWONDERS, Grey Sky Films, I Knowledge Factory Pvt. Ltd., and Skeleton Productions Ltd.