Video encoding is the process of making a video for output. It is a comprehensive process of compressing and changing the format of video content. The goal of the video encoding process is to ensure that the video consumes lesser space. Video encoding is important in many senses. Firstly, the encoding makes it much easier to transfer video over the internet. The compression during the video encoding process reduces the bandwidth required, simultaneously maintaining the quality of the video.

Secondly, video encoding helps in creating compatibility with certain programs and software. There is some content that is already compressed to an acceptable size; however, it still requires encoding for compatibility with certain programs or services. In such a case, video encoding becomes necessary.

The Video encoder market is driven by several factors. Firstly, the video encoder market got a boost after the introduction of the software based video encoding process. The software based video encoding solution has gained traction in the last few years. The software based solution is much more affordable unlike the legacy hardware based system. They can be easily implemented and are highly scalable and can be easily upgraded. Secondly, continuous increase in the sales of handheld devices and strong internet penetration has increased the rate of video consumption.

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Hence, video providers now have to deliver ideal video experience to consumers. For this, they require a comprehensive video encoding platform. Also, there is significant growth in video streaming services. The availability of various online video streaming service providers such as Amazon, Hulu, and Netflix have created options for consumers to choose from. This means that in order to stay ahead in the game, these online video streaming service providers have to focus on video quality apart from content. In order to maintain the video quality, the providers need to have an efficient video encoding solution at place.