Next-Gen Video Codecs Market: Global Industry Analysis and Forecast (2023-2029)

A next-gen video codec is software or hardware that compresses and decompresses digital video. In the context of video compression, codec is a portmanteau of encoder and decoder, while a device that only compresses is typically called an encoder, and one that only decompresses is a decoder. Next-gen video codecs are mainly a hybrid, block-based standard of video coding where other systems is based on high-efficiency video coding (HEVC). Next-gen video codecs can predict rectangular blocks with chroma prediction, while only the square block can be predicted by HEVC. This has increased the end-video user's sharing experience. Modern video codecs use the so called “lossy compression”, which exploits the characteristics of the human visual system in order to achieve high compression rates, such as 20:1.