Video switcher market geared up for growth as the high-end market recovers

The video production switcher market is riding a fresh wave of demand, with heightened activity spanning a range of industry verticals. A new report from Futuresource Consulting reveals that the market value is $351 million in FY2022, with the specialist research firm expecting that figure to rise to $421 million in FY2023.

Initially fuelled by a demand for sub-$10,000 products in response to the fallout of the COVID-19 pandemic, virtual events and home studio live streaming setups, which took place in early FY2020, have paved the way for mid-range and high-end growth in FY2021.

User migration creates traction in the mid-market

“After the first flurry of pandemic-driven activity, the mid-range market received a sudden boost,” says Joyce Wang, Market Analyst, Futuresource Consulting. “This was the result of users migrating from both ends of the pricing spectrum. From FY2020 and across FY2021, new users upgraded from their entry-level <$10,000 products, and those that would typically buy high-end products priced at >$50,000 were more likely to choose mid-range $10,000-$50,000 products as an interim measure to conserve budget. Despite overall market performance in FY2021 being limited by supply chain issues, volume and value still outpaced pre-pandemic levels.”

Switcher market confidence on the up

Throughout the pandemic era, many projects that required high-end >$50,000 video production switchers were put on hold or cancelled altogether. However, as vaccine rollouts ushered back the return of full-capacity live events and concerts in most territories, the high-end switcher market has started to recover. From FY2022, end-users gained more confidence to invest in high-end >$50,000 products, yet Futuresource notes that vendors’ abilities to fulfil this demand continues to be limited by supply chain disruptions.

“The switcher market has potential to achieve significant annual growth in the short to mid-term as the return of live events boosts demand for high-end upgrades and replacements,” says Wang. “However, we are seeing black swan events, such as the war between Russia and Ukraine, and China’s zero COVID policy, have had a disruptive effect on vendors’ ability to capture the initial wave of returning demand”.

New markets and new opportunities

“Despite this backdrop, the mid-to-long-term market outlook is showing very encouraging signs. The addressable market has expanded beyond broadcast media and entertainment. In addition, the market is being bolstered by increased demand for next-generation upgrades, as high-end content producers seek to deliver live broadcasts of exceptional quality. North America is looking particularly promising, and has consistently retained the largest regional value share since it overtook APAC in 2019.”

For more information on Futuresource Consulting’s new global video production switcher market report, or to make a purchase, please contact ben.thurssell@futuresource-hq.com

About the author

Joyce Wang