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The global video conferencing market size was USD 5.32 billion in 2019 and is projected to reach USD 10.92 billion by 2027, exhibiting a CAGR of 9.7% during the forecast period.
Video conferencing is a visual communication session between one or more users irrespective of their locations, featuring audio and video content reception and transmission in real-time. Integration of video communication solutions with advanced technologies such as the Internet of Things (IoT) and artificial intelligence (AI) and cloud-based virtual reality (VR) technology is expected to drive the growth of the market in the forthcoming years. Besides, the increasing demand for visual communication on the account of globalization in businesses worldwide, remote workforce management, and rising internet penetration are factors influencing the growth of the market. Video collaboration solutions aid organizations and enterprises to make faster decisions and eliminate high costs associated with travel and time.
Implementation of Innovative Solutions to Ease Businesses Amid COVID-19
The outbreak of the COVID-19 pandemic leads to the cancellation of different corporate events, such as international seminars, trade shows, product launches, and investor presentations, and others. As a result, corporate organizations are focusing on implementing video communication solutions such as Zoom, Teams, and others to host such events, which has positively influenced the market growth. According to the Wired UK, in 2020, Zoom added 2.22 million monthly active users. According to UC Today, conferencing solutions enable enterprises to cut travel costs by around 30%, while 92% of B2B marketers use such solutions in their core operations amidst the Covid-19 outbreak. Also, various law enforcement agencies and governments are focusing on carrying out operations through such solutions due to the lockdown imposed across the globe. For instance, in April 2020, the Supreme Court of India has issued a notice to the regional courts to conduct their judgments via video type of conferencing.
In the present situation, most of the government and corporate enterprises have adopted the ‘Work from Home’ strategy to prevent the spread of the virus. Hence, they are increasingly adopting video collaboration solutions to track work-related meetings and activities.
These active initiatives are expected to fuel the demand for such solutions in the foreseeable future.
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Adoption of Video Banking to Boost Market Demand
The growing trends of implementing video banking solutions owing to the growing penetration of mobile and online banking among users is expected to accelerate market growth. Video banking solutions help customers to reduce travel time and expenses. In addition, video banking allows end-users to communicate simply, securely, and connect with remote clients and coworkers, thereby improving operational efficiency. Hence, there is a growing adoption of visual communication solutions in the banking and finance sector for loan officers, consumer service representatives, financial advisors, and many others. Key players are introducing new products to cater to the rising demand for video banking solutions in the banking and finance sector.
Increasing Adoption of Cloud-based Solutions among Enterprises to Aid Market Growth
One of the significant market drivers is the rising adoption of cloud-based video communication solutions such as Zoom, Skype, AvayaLive Video, and others across sectors such as government, IT and telecom, education, and others. The cloud-based video communication solutions have the capability to deliver seamless connectivity and assist in solving difficulties related to virtual interactions. Hence, the necessity for improvement and productivity in organizations will promote the growth of the market. Besides, these solutions aid in improving business productivity, optimizing and accelerating the decision-making process, and reducing costs. Key players are focusing on launching new products to gain a competitive edge in the market.
Therefore, the rising adoption of cloud based video collaboration solutions by various enterprises is likely to drive the market growth in the forthcoming years.
High Initial Cost of Solutions to Inhibit Market Growth
The market is growing at a rapid pace attributable to its multi-tasking abilities across various applications. The high investment for the deployment and maintenance of video solutions will limit the market’s potential. Such high deploying cost is attributed to the use of data security software solutions for secure data transmission. In addition, the data security and privacy of identity & information are likely to impede the development of the market. Also, limited functionality provided by these solutions and the lack of expertise among software engineers and developers will hinder the market.
Solution Segment Dominated the Market Share
Based on the component, the market has been divided into solutions and services. Among these, the solution segment is estimated to hold the largest video conferencing market share during the forecast period. The growth is attributed to the rising demand for video collaboration solutions such as the Zoom, Skype, Microsoft Teams, and others in various industries. The services segment is expected to witness a significant CAGR during the forecast period. This growth is attributed to the rising adoption of artificial intelligence (AI) & cloud-based video communication services such as LoopUp, Adobe Connect, and others among enterprises.
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Service-based Conferencing System Segment to Grow Exponentially During the Forecast Period
Based on the conference type, the market is categorized into telepresence system, integrated system, desktop system, and service-based video conferencing system.
Among these, desktop video conferencing (DTVC) is anticipated to exhibit the highest market share, as it is a flexible, reliable, and cost-effective video conference type deployed across various verticals. DTVC offers high-definition video and audio quality and collaboration tools for adding on-screen markup and notes.
The service-based conferencing system segment is expected to exhibit the highest CAGR during the forecast period. The growth is attributable to the increasing demand for VCaaS, as a Service for employee training, deployment of new solutions, project consulting, and others. These factors are expected to fuel demand for the market in the forthcoming years.
Rising Demand for Cloud-Based Deployment Across Enterprises to Support Market
Based on the scope, the deployment segment is divided into the cloud and on-premises. The on-premises segment is likely to have maximum market revenue. The growth is attributed to the rising adoption of on-premise video collaboration solutions by large organizations in response to the data security concerns and maintenance of information security systems. The cloud segment is anticipated to exhibit the highest CAGR during the forecast period. This is attributable to the rising adoption and popularity of cloud-based video collaboration solutions to develop password-protected and better-encrypted solutions that are expected to drive the growth of the market in near future.
Adoption of Video Collaboration Solutions among Large Enterprises
Under the enterprise size segment, our findings suggest that SMEs are adopting cost-effective video communication solutions integrated with digital technologies such as cloud, artificial intelligence (AI), in their operations. SMEs are therefore anticipated to witness strong growth during the forecast period.
Large enterprises, on the other hand, are expected to hold a higher market share during the forecast period. The rising adoption of these solutions to establish collaborations among the employees that are located in different locations is likely to drive the market. Video communication technologies allowed large enterprises to increase operational efficiency and to gain better customer experience.
Adoption of Visual Communication Solution in Small Room to Account for Maximum Share
Based on the application, the market is classified into small rooms, middle rooms, large rooms, and huddle rooms. Among these, the small rooms are anticipated to hold the dominant share during the forecast period. The video communication solution for small rooms is gaining huge traction owing to its cost-effectiveness and ease-of-use. It assists end-users in creating an online conference from their own connected device including PCs, smartphones, or laptops without the requirement of any other peripheral device.
The huddle rooms are expected to register a significant growth rate. This growth is attributable to the rising use of software-based communication solutions and ongoing workplace transformation. The increasing number of open offices, the rising need for ad-hoc team collaboration, and the proliferation of cost-effective HD video collaboration solutions are expected to drive the growth of the segment.
North America Video Conferencing Market Size, 2019 (USD Billion)
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Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America.
North America is expected to dominate the market in terms of revenue share in the global market during the forecast period. The early adoption of advanced technologies and the presence of major key players such as Zoom Video Communications, Inc., Microsoft Corporation, and others are boosting the demand for these conferencing solutions across the US and Canada.
Asia Pacific is expected to grow exponentially during the forecast period. The growth is attributable to the rising demand for video collaboration solutions for advanced automation processes in the research and education sectors. Key market players are focusing on product launching strategy to enhance their product portfolio.
The market in Europe is expected to rise at a substantial CAGR during the forecast period. The growth is attributable to the presence of a considerable number of video collaboration solution providers. The Middle East & Africa and Latin American regions are expected to experience a gradual CAGR during the forecast period. This growth is attributable to the rising investment by the local government to adopt advanced technologies such as 5G, artificial intelligence (AI), machine learning (ML), cloud, and others.
Emphasis On Developing Innovative Video Collaboration Solutions to Strengthen Competition
Major players such as Verizon Communications Inc., Cisco Systems, Inc., Microsoft Corporation, Vidyo Inc. among others are proactively strengthening their market position by upgrading their existing product lines to cater to the various enterprise applications. In addition, key players are now deploying video communication solutions with advanced technology such as AI, ML, cloud, and others to enhance their products and deliver enhanced solutions.
Key market players are focusing on offering various video communication solutions and services targeting different levels of organizations. The high competition in the market is forcing prominent players to introduce advanced video collaboration services for strengthening their market position. For instance, in April 2020, Facebook, Inc. launched its Messenger Rooms solution, allowing end-users to conduct video conferences with more than 50 people. The features helped the company to gain more consumer engagement with video collaboration platforms.
An Infographic Representation of Video Conferencing Market
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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the video conferencing market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the video conferencing market growth in recent years.
2016 – 2027
2020 – 2027
2016 – 2018
Value (USD billion)
By Conference Type
By Enterprises Size
Fortune Business Insights says that the global market value stood at USD 5.32 billion in 2019.
By 2027, the market size is expected to reach USD 10.92 billion.
The market is expected to grow at a CAGR of 9.7% in the forecast period (2020-2027).
Based on the component, the solution segment is expected to lead the market during the forecast period
Adoption of video banking is one of the key drivers for market growth
Zoom Video Communication Inc., Microsoft Corporation, Avaya Inc., Logitech International SA, Huawei Technologies, and others are the top companies in the market
The small room segment holds the major market share.
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