Video Compression (VC) is one of the resource hungry key element in video communication and is commonly achieved using Motion Estimation (ME). In this paper we proposed power efficient one bit full adder and one of the simple and easy metric called Sum of Absolute Difference (SAD) for estimating the motion vectors in motion estimation. SAD is primarily used to detect motion in the video sub system. Here we proposed power efficient 4X4 and 8X8 SAD architectures. The proposed 4X4 SAD proves that 29%, 63.23% and 61.31% improvement in leakage power, dynamic power and total power respectively as compared with existing 4X4 SAD. Similarly the proposed 8X8 SAD which proves that 57%, 46.16% and 46.78% improvement in Leakage Power (LP), Dynamic Power (DP) and Total Power (TP) respectively as compared with that of existing 8X8 SAD at the gate level. The designs are implemented in ASIC methodology using cadence tools. Keywords - SAD, ME, VC, CSA, DSP, LP, DP, TP, FPGA etc. I. INTRODUCTION Many recent multimedia applications of digital video systems such as video conferencing, video-on- demand, video-phone, distance learning and digital TV, object tracking and many more have become popular products because of their convenience. Such applications require video compression with ever higher compression ratios, better visual quality and high bandwidth. The high efficiency video compression commonly uses the efficient hardware architectures. In general the development of hardware architectures are designed to form the integrated circuits which allows parallel processing of data from various sub blocks of the architectures, however hardware architectures suffers from limitations such as algorithm flexibility due to timing dependencies, which arises from the dataflow of various blocks of the architecture. Thus the development of good architecture of video codec in integrated circuits is very important. The customization of video codec is the video compression in the modern state of the art real time Digital Signal Processing (DSP) systems. Video compression is one of the techniques in video processing system to reduce resource usage. The two primary challenges addressed during video compression are: Limited Network bandwidth. Limited Storage capacity. Hence the two important metrics of a video encoder are low computational complexity & low power hardware implementation. Present day world, compression ratio plays the major role in the field of video processing. The motion in the video scene will reduce the efficiency of the compression ratio. Hence the motion estimation field has seen the highest research topic and interested issue in the past a few decades. In short the motion estimation means the estimation of the displacement (or velocity) of image structures from one frame to another in a time sequence of 2-D images of the video in order to achieve video compression in video coding. The efficiency of the compression ratio can be increased by exploiting the similarities between the video frames. The simple metric system is the SAD algorithm, where the absolute differences between the corresponding elements are added up. There are varieties of video coding standards in the video processing systems; the modern video coding standard is H.264/AVC. This coding standard uses the Variable Block Size Motion Estimation (VBSME), in this standard; the computation requirements are much higher than the previous coding standards such as H.263/ MPEG-IV. In H.264/AVC, each picture frame is divided into many macro blocks.