Video on Demand in Hospitality Market to Witness Impressive Growth over the Coming Years

Video on demand (VOD) has completely transformed the traditional television viewing by providing various features like HD videos on demand anytime and anywhere through internet and mobile networks. The global video on demand market is evolving rapidly since more and more people are now watching videos on their smartphones, tablets, and computers, thus placing high importance on network connectivity, mainly because of the convenience of use. The major industry benefitting from this is the hospitality industry, thus enabling the customers to watch and stream videos or movies from anywhere, thereby enriching the customer experience as well. Therefore, with the high adoption rate of VOD and ongoing developments in technology, the worldwide market for VOD in hospitality is expected witness stellar growth over the coming years.

What are the growth trends within the different market segments of this market?

The global video on demand in hospitality market that is expected to be valued at USD 6.89 Billion in 2016 is projected to reach a value of USD 19.11 Billion by 2021, growing at a CAGR of 22.6% during the forecast period from 2016 to 2021.

Based on solution, IPTV is expected to hold the largest market share over the forecast period, owing to the rising need and usage of IPTV because of the high speed internet access and on-demand TV shows. This in turn has led to the various hospitality segments such as cruise and luxury hotels adopting IPTV for enhancing the customer experience. Based on delivery model, smartphones and tablets are expected to dominate the market, owing to their rising usage for streaming on-demand videos since it allows users to watch movies, stream other videos, browse, and play games, among others. Looking at the widespread use of these devices, many hotels have now offer internet or WIFI connectivity services to the customers.

Geographically, North America is expected to dominate the market with the highest share over the forecast period, owing to the higher adoption rate of VOD due to the rise in demand for digital technologies in the hospitality sector in this region. However, Asia-Pacific is expected to offer ample growth opportunities for this market, since there is an immense rise in the adoption of cloud and digital technology among both small and large businesses in the hospitality sector in order to increases profitability.

What is expected to drive and restrain the market growth?

The global market for video on demand in hospitality sector has been showing gradual growth, mainly owing to the continuous developments in technology, increasing efforts to improve guest viewing experience, and increased usage of mobiles and tablets for VOD. Moreover, rising usage of web-based video on demand services and ongoing developments and innovations in this technology is expected to create an array of growth opportunities for this market in the years to come.

On the other hand, higher cost of VOD solutions which involve regular maintenance costs and timely upgradations add to the overall organization budget, thus restricting the market growth. In addition, issues regarding network connectivity for streaming HD videos compatible with the devices are also likely to affect the growth of this market to a certain extent. Moreover, frequently changing demands of customers remains a key challenge in front of the leading market players.

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What are the strategies adopted by companies in this market for sustenance?

Alcatel-lucent(France), Ericsson(Sweden),Huawei (China), AT&T (U.S.), Cisco (U.S.), Apple(U.S.), Microsoft (U.S.), Akamai (U.S.), Avaya (U.S.), and Netflix (U.S.) are leading companies involved in the global video on demand in hospitality market, with Alcatel-lucent being one of the key players in this market. New product launches was the key strategy adopted by this company in order to meet the demands of the VOD users. Also, Akamai recently launched Predictive Content Delivery Solutions in order to allow instant HD quality video distribution on various mobile devices, along with managing offline videos on any device and over any network.

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