Video Streaming Software Market Forecasted to Hit $26.13 Billion by 2031

The global video streaming software market is projected to grow from $13.80 billion in 2026 to $26.13 billion by 2031, representing a compound annual growth rate of 13.6%. This expansion is driven by a massive shift toward cloud-based architectures and AI-integrated tools as OTT providers and media companies seek to scale live and on-demand content for global audiences. For the streaming and media sector, these findings underscore a critical transition toward low-latency technologies and mobile-first engagement strategies to meet rising consumer demand for real-time interactivity and high-quality playback.

The video streaming software market is undergoing a significant transformation as it is projected to reach $26.13 billion by 2031, up from $13.80 billion in 2026. This 13.6% compound annual growth rate is primarily driven by media companies, OTT providers, and enterprises migrating from legacy on-premises servers to scalable cloud and hybrid architectures. These modern systems are essential for managing high-concurrency traffic volumes and ensuring seamless multi-device compatibility through adaptive bitrate streaming and AI-powered analytics. Furthermore, the adoption of DRM-secured delivery and encrypted video is accelerating as organizations prioritize data privacy and content protection standards.

Live streaming is identified as the fastest-growing segment, with a focus on low-latency and ultra-low-latency technologies to support sports broadcasting, interactive gaming, and live commerce. In March 2025, Agora introduced a Conversational AI Engine and infrastructure capable of supporting sub-second latency between 400 ms and 800 ms for real-time engagement. Similarly, Wowza expanded its interoperability in September 2024 through partnerships supporting LCEVC and advanced real-time workflows. These technological shifts, including WebRTC delivery and AI-assisted bitrate optimization, are designed to maintain stream stability during massive concurrent events.

Mobile and handheld devices are expected to command the largest market share as consumers increasingly favor personalized, on-the-go video experiences. To meet this demand, Brightcove launched vertical video interfaces and AI-powered localization tools in December 2025 to enhance mobile engagement. While mobile dominates accessibility, North American market trends show a continued preference for high-quality large-screen experiences, with NPAW reporting in August 2025 that smart TVs and set-top boxes accounted for 69% of video-on-demand viewing time. Consequently, streaming vendors are focusing on a dual strategy of 5G-enabled mobile optimization and premium rendering for home entertainment systems.