New Devoncroft Report Provides Comprehensive Media Technology Market Sizing and Analysis

Aggregate Media Technology Sector Revenue set to Decline by 4% in 2023

The total market value for broadcast and media technology products and services is expected to decline by 4% in 2023 to approximately $61.5 billion as a range of structural changes continue to impact the sector.

These findings are part of a newly published Devoncroft report that provides a comprehensive overview of the media technology sector, including provides market sizing and analysis for more than 250 product and service categories grouped across nine high-level segments and thirty-one sub-segments.

Having authored media technology market sizing reports for more than a decade, Devoncroft is considered by many to be the definitive source for broadcast and media technology market sizing, analysis, and insight. We have developed and continually refined a bottom-up data model that encompasses nearly 4,000 companies and draws on actual and future projected revenue and product shipment data supplied to us by media technology vendors and service providers under a collaborative data sharing framework and governed by strict confidentiality.

This exhaustive approach allows us to profile, segment, and count sell-out revenue of media technology supplier and service providers globally, to create and deliver actionable insights and authoritative market sizing figures that are essential tools for executive decision-makers in the media technology sector.

Devoncroft also conducts and publishes the industry’s largest and most comprehensive study of media technology buyers and end users via our annual Big Broadcast Survey (BBS), which we’ve been conducting for the past fifteen years. 2023 BBS reports were published recently and are available for immediate delivery.

Market Sizing and Industry Drivers

Although the total market for media technology products and services increased by approximately 1% in 2022, we anticipate that aggregate sector revenue in the current year will decline by just over 4%, reflecting softness in several geographies and market segments.

Note that there is a tremendous amount of detail behind these numbers. As shown below, different product and service categories may move very differently. Because some categories represent a large percentage of overall industry revenue, their performance may impact and overshadow dozens of smaller parts of the industry.

We work with clients to understand what’s happening in this market and how this affects their business. If you’re interested in a deep dive into all the details, please contact us for more information. We’ll also be presenting our findings on our website, and at our conferences and events.

At a high-level, we’ve observed the following factors impacting the market:

• a heightened focus on profitability at media companies, leading to pressure on technology budgets
• cessation of content production for six months, due to labor disputes
• increased emphasis on automated operations and the impact of machine learning and generative AI
• mean reversion in many product and service categories, following demand being pulled forward by the pandemic
• moderate softening in overall demand for live event production services
• massive value shifts across multiple product and service categories, driven by changing consumer behavior, advances in IP technologies, and increasing connectivity
• slowing growth in spending on public cloud platforms as large media companies optimize initial deployments, and potential net new buyers exhibit a different adoption profile
• increased interest rates have and will continue to have a major impact on both buyers and suppliers of media technology products and services
• market cyclicality is still a thing

Don’t Believe Aggregate Figures – Detail Matters

More worthy of study than the headline figures are the varied growth dynamics across the media technology value chain.

While the total market for all products and services will decline in 2023, this does not mean everything is moving in the same direction at the same time.

Consider the below chart, which illustrates the 2017 – 2022 compounded annual growth rate (CAGR) for each product and service category tracked in the Devoncroft Report. We are clearly operating in a dynamic environment

Markets ebb and flow. Certain categories decline. Other categories grow – often very dramatically, as evidenced by the green lines shown above.

Performance (positive or negative) of any individual category or supplier is impacted by a wide variety of factors, including the macroeconomic environment, government actions, industry specific developments, cyclicality, and the disruptive influence of certain next-generation technologies.

It Takes a Global Community

An in-depth understanding of market dynamics is essential for industry executives.

Detail matters when making strategic decisions in an industry where 250 product and service categories are offered by nearly 4,000 suppliers globally.

Devoncroft has a proven track record of delivering accurate and timely market intelligence information that is trusted by senior leaders worldwide.

Providing this information at the level of granularity required is only made possible through the extensive collaboration Devoncroft has enjoyed with both buyers and suppliers of media technology globally.

We’re grateful to the many companies on both sides of the industry that have contributed to our ongoing efforts to provide the most authoritative and accurate market intelligence products and services in the industry.

These contributions take many forms, ranging from assistance in developing the underlying category segmentation, to discussions of end-user budget allocations and spending plans, to supplier and service provider commentary on market developments impacting sales levels, to the submission of confidential budget and revenue figures. Many thanks to all contributors to this Report.

The Devoncroft Report is Available Now

You won’t get a hard sell from us.  If you an interested in finding out more about Devoncroft, licensing the Devoncroft Report, or contributing to future versions, please contact us.

Related Content:

2023 Big Broadcast Survey (BBS) Reports Now Available

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