Video Conferencing Market Size, Share & COVID-19 Impact Analysis, By Component (Hardware and Software), By Conference Type (Telepresence System, Integrated System, Desktop System, and Service-based System, Others), By Deployment (Cloud and On-premises), By Enterprises Type (Small and Medium Enterprises and Large Enterprises), By Application (Small Rooms, Huddle Rooms, Middle Rooms, and Large Rooms), By Industry (IT & Telecom, Government, Healthcare, Manufacturing, BFSI, Education, Media & Entertainment, and Others), and Regional Forecast, 2023-2030

The global video conferencing market size was valued at USD 7.02 billion in 2022. The market is projected to grow from USD 7.76 billion in 2023 to USD 17.05 billion by 2030, exhibiting a CAGR of 11.9% during the forecast period.

Video conferencing sessions are real-time visual sessions between one or more participants. The integration of developed technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and cloud technology is expected to drive market growth in the near future. Furthermore, the growing need for video communication, virtual workforce management, and cloud-based collaboration platform are some of the major factors impacting market growth. Organizations and corporations are adopting video collaboration solutions with the aim to make faster decisions and avoid high costs associated with traveling. Further, increasing demand for remote learning is anticipated to drive market growth. For instance, in January 2022, RingCentral, Inc., a cloud-based video collaboration provider, launched new education product portfolio to support hybrid learning for educational institutes.

The study includes the conferencing system such as Plantronics, Inc. which provides a visual conferencing meeting solution series for Microsoft Teams rooms, including the G80-T, Poly G40-T, and G10-T. Similarly, Logitech launched the Logitech StreamCam for content creators and broadcasters. Also, Facebook, Inc. launched Messenger Rooms which allows end-users to hold video conferences with up to 50 people. Such initiatives are anticipated to drive the market growth.

COVID-19 IMPACT

Rising Demand for Conferencing Software and Services to Ease Business Operations Amid COVID-19

The COVID-19 pandemic impacted variety of business events, including international seminars, trade exhibits, investor presentations, product launches, and others. As a result, corporate organizations started implementing livestream communication solutions such as Teams, Zoom, and others to host such events, which has influenced market growth positively. According to the Wired UK, Zoom Video Communications, Inc. had around 2.22 million active monthly users in 2020. Similarly, as per the UC Today, conferencing solutions have assisted organizations to save travel expenditures by roughly 30%, and 92% of B2B marketers employ such solutions in their core activities in the face of the COVID-19 pandemic.

In addition, owing to the global lockdown, various law enforcement organizations and governments are focusing on carrying out activities using such technologies. For example, in April 2020, the Supreme Court of India directed regional courts to conduct their hearings through video conference.

To combat the spread of the virus, most ergovnment and business entities have implemented work from home policies. As a result, they are increasingly relying on video collaboration solutions to keep track of work-related meetings and activities. These initiatives fueled the demand for the product during the projected period.

LATEST TRENDS

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Rising Adoption of Video Banking to Aid Market Augmentation

The growing trend of deploying video banking solutions, as a result of the increasing prevalence of online and mobile banking among customers, is predicted to boost the growth of the market trends. Customers may save time and money by using video banking options. Furthermore, the solution enhances employee productivity, customer engagement, and helps by offering a safe and secure communication channel. As a result, visual communication solutions are increasingly being used by loan officers, customer service personnel, financial advisers, and others in the banking and finance industry. To meet the growing demand for video financial services in the banking and financial sector, key providers are developing new products. For instance,

• In December 2022, California-based Eltropy introduced a new video banking communication tool for the financial institutes facing labor shortage issues. Banks such as Coastal Heritage Bank in Massachusetts improved their customer services and their relationships with clients by adopting such tools.

Thus, the rise in video banking will boost global market growth.

DRIVING FACTORS

Increasing Preference for Remote and eLearning to Drive Market Growth

Institutions, schools, universities, and K-12 have adopted conferencing solutions to use distant learning as a substitute for traditional classrooms. With the pandemic's impact, more educational institutions are collaborating with video communication services to expand remote learning. As a result, educational institutions are implementing software to provide an efficient learning experience to students. For instance,

• In January 2023, an England-based European School of Osteopathy announced collaboration with YuJa Enterprise Video Platform to provide its courses content internationally and locally through the video conferencing platform.

Furthermore, software programs including Adobe, Microsoft Office, and others assist users to access online classes from their personal smart devices. Also, it allows administrators to share displays, papers, and files with their students while they are teaching. Thus, with such initiatives, the worldwide video communication industry will drive video conferencing market growth.

RESTRAINING FACTORS

High Initial Cost of Hardware Solutions and Privacy Concerns to Inhibit Market Growth

The market is expanding at a rapid speed, owing to its multitasking capabilities across several applications. The high cost of deploying of hardware solutions will restrict market growth across SMEs. Also, the high cost of deployment is owing to the adoption of data protection software and hardware solutions to secure data transfer. Furthermore, data privacy and security of identity and information are expected to hinder market expansion.

SEGMENTATION

By Component Analysis

Increased Demand For Conferencing Solutions To Fuel Market Growth

Based on the component, the market has been divided into hardware and software.

The hardware segment is projected to capture the largest market share over the projected period. The increased demand for conferencing solutions such as Skype, Microsoft Teams, Zoom, and others across many industries is attributable to the market expansion. For instance, Logitech provides conferencing room solutions including rally plus, rally bar, Logitech scribe, Logitech tap IP and Logitech sealect, andothers.

The software segment provides end-users with an enhanced visual conferencing experience and further helps in driving segment growth. Also, the increasing use of Augmented Reality (AR)/VR, AI, and cloud-based visual communications services such as Adobe Connect, LoopUp, and others are further expected to boost market.

By Conference Type Analysis

Growing Demand for Higher Quality Conference to Boost Telepresence System Growth

Based on the conference type, the market is categorized into telepresence systems, integrated systems, desktop systems, and service-based systems.

During the projection period, the telepresence system is predicted to capture the largest market share. This system employs cutting-edge technology, allowing the conference to be broadcast in high-quality audio and video.

The desktop system is expected to showcase rapid growth rate during the forecast period. The desktop system is a highly versatile, dependable, and cost-effective video communication solution. Also, these desktop systems are widely used in a variety of industries including education, media and entertainment, and aerospace and defense among others.

The service-based system is predicted to display significant. The rising demand for video communication as a Service (VCaaS) for staff training, implementation of project consulting, solutions, and other applications is aiding segment growth. Owing to such factors, the industry is predicted to increase significantly.

By Deployment Analysis

Higher Security Demand to Boost On-premises Segment Share

Based on the deployment, the market is divided into the cloud and on-premises.

The on-premises is expected to have the major market revenue. The increasing adoption of on-premises solutions by large enterprises in response to the maintenance of data security systems and information security concerns is aiding segment expansion.

The cloud is expected to grow at the highest CAGR owing to the rising adoption of cloud computation. The growing adoption of cloud-based software solutions provide encrypted and password-protected data transfer and thus offer secured communications.

By Enterprise Type Analysis

Growing Investments in Communication Solutions by Large Enterprises to Drive Market Growth

Under enterprise type, the market is divided into small & medium enterprise and large enterprise.

SMEs are expected to use these solutions to improve their customer relationships, communication between sales teams, distant locations new product launches, and other activities. As a result, SMEs segment is expected to increase rapidly throughout the projection period.

Large enterprise is likely to have a significant market share. The market is projected to be driven by the increasing usage of solutions to develop collaborations among employees situated in different places. Large organizations are able to boost operational efficiency and provide a better client experience owing to video communication solutions.

By Application Analysis

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Cost-effectiveness to Boost the Share of Small Rooms

Based on the application, the market is classified into small rooms, middle rooms, large rooms, and huddle rooms.

Small rooms are expected to have the largest market share over the projection period. The video communication solution for small rooms is gaining popularity due to its low cost and ease of use. It enables end-users to create an online conference using their connected devices, such as PCs, cellphones, or computers, without the need for any additional peripheral devices.

The huddle rooms segment is projected to expand at a rapid pace. This expansion is attributed to the increasing usage of software-based solutions. The growing number of open workplaces, and the increased requirement for ad hoc team communication is driving segment expansion. Also, the proliferation of low-cost high definition video collaboration solutions is likely to boost the segment's growth.

By Industry Analysis

Growing Digitalization to Boost IT & Telecom Segment Share

Based on industry, the market is categorized into IT & telecom, government, healthcare, manufacturing, BFSI, education, media & entertainment, and others.

IT and telecom segment is projected to gain dominant market share owing to enterprises’ maximum investment in advanced technologies. The industry is an early adopter of the solution and during pandemic it has significantly supported the IT industry in remote work.

BFSI segment is anticipated to achieve highest CAGR during the forecast period. The customer specific solutions are gaining traction in the industry with the rise in digitalization. Similarly, healthcare segment is estimated to showcase promising growth rate owing to the rising focus on offering patient support across all possible channels.

Education segment is also steadily investing in the solution to boost the e-learning capabilities and to reach maximum students. Also, governments across countries are implementing video conferencing technology to ensure reduced delays owing to the lack of communication channels.

REGIONAL INSIGHTS

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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.

North America is estimated to lead the global video conferencing market share in terms of revenue. Early adoption of emerging technologies, as well as the existence of major key companies such as Microsoft Corporation, Zoom Video Communications, Inc., Cisco Systems, Inc., and others, are driving demand for these conferencing solutions in the U.S. and Canada. This is expected to boost the North America market growth.

Asia Pacific is predicted to grow at an exponential rate. The rise in demand for video communications solutions for automated processes in the education and research sectors is attributed to the growth. Due to the presence of a significant number of SMEs and growing interest in digitalization solution, the region is likely to demonstrate immense market growth potential.

The European market is predicted to develop at a significant compound annual growth rate CAGR. The availability of a large number of video collaboration solutions and services has contributed to market expansion in this region. Furthermore, increasing corporate investments in research and development are likely to boost Europe market share in the near future.

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The Middle East and Africa region is predicted to grow at a substantial growth rate. This expansion may be attributed to the local government's increasing investment in innovative technologies like as 5G, machine learning (ML), artificial intelligence (AI), cloud, and others. Similarly, with the increasing IT budgets. South America to showcase steady growth rate during the forecast period.

KEY INDUSTRY PLAYERS

Emphasis on Strengthening Market Position by New Launches and Developments

The market's players are focusing on improving their market position by updating their existing product portfolio to meet the needs of organization applications. The market's continuously increasing competition drives market leaders to provide enhanced video collaboration services in order to enhance their market presence and gain new customers. These market players are also creating solutions by incorporating technologies such as ML, AI, cloud, and others to improve their goods and provide better solutions.

LIST OF KEY COMPANIES PROFILED:

• Avaya, Inc. (U.S.)


• AVer Information, Inc. (Taiwan)


• Blue Jeans Network, Inc. (U.S.)


• Cisco Systems, Inc. (U.S.)


• Huawei Technologies Co. Ltd. (China)


• Logitech International S.A. (Switzerland)


• Microsoft Corporation (U.S.)


• Panasonic Corporation (Japan)


• Polycom, Inc. (Plantronics, Inc.) (U.S.)


• Zoom Video Communications, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: Zerify Inc., announced collaboration with SpeakSpace, LLC to boost its sales and increase brand recognition. The company offers cybersecurity solutions for video conferencing that help businesses in having secured communication.


• February 2023: Qualcomm Technologies, Inc. launched a new video conferencing solution with artificial intelligence capabilities to offer more immersive communication. The solution eliminates distractions and enhances user participation. 


• January 2023: New York-based Cordoniq, a smart video collaboration platform provider, announced a new offering for enterprise businesses to access secured video conferencing solution beyond standard solution.


• March 2022: Cisco Systems, Inc. partnered with Fordto integrate electric vehicle screens with Webex. Further, with this partnership, the company aims to transform electric vehicles into next-gen office spaces. Also, Webex will function in audio mode while the vehicle is moving and with all features when it is stopped including visual conferencing.


• September 2021: Zoom Video Communications, Inc. collaborated with Amazon Web Services (AWS) Marketplace to provide video conferencing solutions to state, federal, and local government clients.


• January 2021: Microsoft Corporation collaborated with SAP SE to provide new connectors between SAP solutions and Microsoft Teams such as SAP SuccessFactors, SAP S/4HANA, and SAP Customer Experience.

REPORT COVERAGE

An Infographic Representation of Video Conferencing Market

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The market report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry trends and analyzes technologies deployed rapidly globally. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

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