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Global OTT market in 2025

by Noyal Sharook

As we gradually move towards 2025, the landscape of media consumption is undergoing a transformative revolution. The OTT market, which has been steadily evolving over the past decade, is all set to take center stage on the global digital content platform.  In this exciting exploration of understanding where the OTT industry is ahead, we embark on a journey to discover the latest trends, forecast the future of streaming, and reveal the numerous forces shaping the way we watch, share, and create content. 

In 2022, the OTT platform market size reached a staggering USD 702.58 million, and the forecast for the years ahead is nothing short of remarkable. With a projected Compound Annual Growth Rate (CAGR) of 12.96%, this dynamic industry is set to expand exponentially, soaring to an extraordinary US$ 332.5 billion by 2025. This incredible surge is driven by various types of OTT services, including Video-Based and Audio-Based platforms, catering to a multitude of applications across sectors such as Media and Entertainment, Government, Retail, and more. Read on as we dive deep into the profound insights, trends, and regional dynamics that will shape the future of the OTT platform market in the years to come.


The outbreak of the Covid-19 pandemic showcased the crucial role of video streaming in modern society. With billions of people confined to their homes, screens became windows to the outside world. During this time, on-demand video services (OTT) emerged as a lifeline, offering a vast array of entertainment, information, and connectivity. 

As a result, the OTT industry is set to achieve remarkable global sales, projected to reach a staggering US$ 332.5 billion by 2025. This exponential growth is not only catching the attention of audiences but also of major industry players such as Netflix, HBO, Disney, and Amazon, who are funneling significant investments into this booming sector. For app developers and advertisers, OTT has swiftly transformed into an indispensable category, offering a promising platform for reaching and engaging with audiences on a very wide scale.

Emerging markets in Asia, Latin America, and Africa will be significant drivers of OTT growth in 2025. As internet infrastructure improves and smartphone adoption continues to rise in these regions, more consumers will access OTT services and providers will need to cater to local tastes and languages to succeed in these markets.

The growing use of smartphones, coupled with the unprecedented global pandemic, has acted as a powerful catalyst for the rapid growth of the OTT  market. As people increasingly turned to their smartphones for entertainment, communication, and work during lockdowns and social distancing measures, the demand for on-demand streaming services soared. Whether it was binge-watching TV series, streaming movies, or video conferencing for remote work and social interactions, smartphones became essential tools for staying connected and entertained. This surge in smartphone usage created a captive audience for OTT providers, allowing them to expand their subscriber base drastically. 


In the dynamic landscape of the OTT services market, the choice of business model plays a pivotal role in shaping revenue streams. Among these models, the premium and subscription segment took center stage in 2017, commanding a dominant share of approximately 48.5% in the overall market. This model thrives on revenue derived from fixed fees paid by customers for downloading and accessing applications. Moreover, it encompasses memberships and the transition of freemium services to premium, making it a very lucrative venture. 

The premium and subscription segment’s revenue is marked for growth, driven by the expanding OTT media content and cloud service applications. Additionally, the adware model, reliant on revenue generated through advertisements on these video-on-demand streaming applications, is expected to make a significant contribution to the OTT market’s financial landscape. Another revenue avenue is the e-commerce business model, which capitalizes on sales of its own products and services, diversifying the monetization strategies within the on-demand video streaming ecosystem.

In 2017, e-services stood out as a major money-maker in the OTT services market, raking in a whopping 447.60 billion in revenue. E-services cover a range of things like online learning, digital health, online businesses, and e-commerce. This category’s importance is expected to continue for the foreseeable future because it offers flexible and easy-to-access solutions across various areas, meeting the changing demands of people in our increasingly digital world. Plus, as fast internet becomes more affordable, the desire for quick, on-demand content and services keeps growing. This means that media content and cloud services are likely to bring in a lot of money in the coming years by taking advantage of high-speed internet to offer seamless access to content and services whenever we want them, and at competitive prices. As the world of OTT keeps evolving, these applications are reshaping how we experience digital content and services.


The future of the OTT market is heading towards mobile-first, especially in countries with strong mobile internet. While OTT initially gained popularity through fixed broadband connections to computers and TVs, it’s shifting towards mobile devices like smartphones and tablets. This shift is primarily driven by mature broadband markets reaching their limits, pushing OTT providers to focus on mobile strategies and tap into the growth potential in developing countries where fixed broadband isn’t widespread. Mobile devices offer convenience and accessibility, reshaping how people access content and making it a priority for OTT companies looking to expand globally.

Another key factor in this mobile-oriented market is the growing availability of 5G technology. As 5G networks spread worldwide, they promise faster speeds and more reliable connections, eliminating the frustrations of slow loading and interruptions during streaming. 5G’s game-changing feature is its ability to bring cloud computing infrastructure, crucial for video-on-demand streaming services, closer to users. This allows for real-time processing with minimal delays, ensuring a smooth and uninterrupted streaming experience. 

North America and Europe currently dominate the OTT market, collectively accounting for more than half of its total share. In North America, which includes the United States, Canada, and Mexico, the demand for OTT services is continuously on the rise, particularly in the United States. The essential infrastructure for OTT services, such as connected devices, widespread broadband coverage, and a well-established payment system, is already in place, facilitating the expected rapid expansion of the industry in the region.

On the other side of the globe, the Asia Pacific region emerges as a powerhouse in the global OTT market. This region is home to two of the world’s most populous developing nations, India and China, which are driving significant growth across various markets, including OTT services. The rapid spread of technology and internet access to almost 40 percent of the people in the Asia Pacific has led to a big demand for on-demand-video platforms and this high demand has made the Asia Pacific’s OTT market one of the strongest globally. Furthermore, the region’s diverse languages, spoken by a rich blend of cultures, along with hosting 60 percent of the world’s population, increase the need for content in many languages. This broadens the market’s potential and opens up significant growth opportunities for the future.


To sum it up, the OTT platform market is on a remarkable growth trajectory, going from USD 702.58 million in 2022 to an expected US$ 332.5 billion by 2025, with an impressive 12.96% annual growth rate. We’ve explored a wide range of OTT services, serving various sectors like media, government, and retail. This growth reflects the changing preferences of global audiences who rely more on video-on-demand streaming solutions for content. Looking ahead, OTT promises to shape how we consume media and information, offering exciting opportunities in our increasingly digital world.

For entrepreneurs, this dynamic OTT landscape presents a wealth of opportunities. To capitalize on this thriving market, innovators should consider developing niche content or specialized services that cater to specific audience segments. Building strong partnerships and collaborations within the industry can also open doors to new markets and revenue streams. Moreover, staying abreast of emerging technologies, particularly 5G, and utilizing them to improve user experiences will be crucial in gaining a competitive edge. As the OTT market continues to expand and diversify, entrepreneurial endeavors that prioritize innovation, accessibility, and user engagement are set for success in this rapidly evolving digital frontier.
Now, if you’re awestruck by the enormous possibilities that this industry offers, and wish to build an OTT platform to get your business rolling, check out iScripts VisualCaster, which is a go-to software solution for on-demand video streaming that enables you to create your own OTT platform, similar to Netflix.  Having second thoughts? Well, then check out our FREE DEMO.


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