Video Editing Software Market Size, Trends and Growth Analysis by 2027

The global market for video editing software was valued at approximately US$ 1.94 billion in 2019 and is projected to grow to US$ 3.04 billion by 2027, reflecting a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027.

This market is primarily led by a select group of prominent players who maintain a strong competitive edge, brand recognition, and a substantial customer base across key regions. Notable companies in the video editing software sector include Adobe, Apple, Avid Technologies, CyberLink, Autodesk, and Corel. These firms collectively dominate the market landscape. In contrast, the segment for cloud and mobile application-based video editing solutions remains fragmented, featuring a mix of both established and niche players.

According to the US Bureau of Labor Statistics, employment for video and film editors in the United States is expected to increase by 22% from 2019 to 2028. Major opportunities in this field are anticipated in cities like Los Angeles and New York, which are home to numerous entertainment companies. The anticipated growth in job opportunities for video and film editors is likely to lead to an increase in video and film production, thereby driving demand for video editing software.

A report titled State of Video Marketing 2020, published by the animated explainer video company Wyzowl, indicates that 92% of the 650 marketers surveyed view videos as a crucial element of their marketing strategies. This figure has risen consistently from 78% in 2015 and 85% in 2018. Additionally, 83% of video marketers reported that video content has been effective in generating leads. The report also highlights that, on average, individuals spend around 16 hours per week watching online videos, marking a 52% increase over the past two years. Furthermore, approximately 86% of respondents expressed a desire to watch more brand videos in 2020. This surge in video consumption is expected to significantly contribute to the growth of the video editing software market in the United States.

The global video editing software market comprises a mix of both small and large players. The report profiles several key companies, including Adobe, Inc., Animoto Inc., Apple Inc., Autodesk, Inc., Avid Technology, Inc., Biteable Pty Ltd, Clideo (Softo Ltd.), Clipchamp Pty Ltd., Corel Corporation, Cyberlink Corporation, Enlight Videoleap, Flexclip (Pearlmountain Limited), Fxhome Limited, Inshot Inc., Kapwing Inc., Kinemaster Corporation, NCH Software, Pixiko, Placeit (Envato Pty Ltd), Renderforest LLC, Splice, Vimeo, Inc., Viva Video, and Wondershare. This analysis includes various other market players at both regional and national levels.

Impact of the COVID-19 Pandemic on the Video Editing Software Market

The COVID-19 pandemic has led to an unprecedented surge in cases worldwide, resulting in lockdowns that have affected many technology service providers. This situation has hindered market growth, particularly due to a significant drop in revenue stemming from reduced demand from media and production houses, which curtailed their technology procurement across North America, Europe, and the Asia-Pacific region. Nevertheless, the strong customer base and gradual resumption of economic activities have mitigated the pandemic's impact on larger enterprises. Similar trends have been observed in other regions, affecting the video editing software market.

In recent years, advancements in hardware and video recording technology have spurred the rapid growth of videos utilizing virtual reality (VR), augmented reality (AR), and mixed reality (MR). The popularity of 360-degree videos has surged among various end users, leading to increased demand for such content. Consequently, many leading video editing software developers have incorporated specialized tools and features into their software to facilitate the editing of AR, VR, and 360-degree videos.

On-premise video editing software provides users with complete control over the software environment. In this model, the responsibility for data security lies with the customer and their IT department or designated individual. However, managing on-premise solutions can be complex due to the lack of transparency in the infrastructure provided by developers. Despite the high initial costs associated with on-premise deployment, many organizations choose this option to ensure data security. As demand for on-premise software rises, numerous video editing software developers are offering their products for on-premise use.

Currently, there is no fully functional cloud-based video editing software available for professional use that can replicate the features of desktop software within a browser interface, store production files in the cloud, and enable collaborative editing. As a result, large media and entertainment companies continue to rely on on-premise solutions, which further drives the growth of the on-premise video editing software market.