"Smart Strategies, Giving Speed to your Growth Trajectory"
The global video conferencing market size was USD 5.77 billion in 2020. The global impact of COVID-19 has been unprecedented and staggering, with video conferencing witnessing a positive demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a significant growth of 8.1% in 2020 compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 6.28 billion in 2021 to USD 12.99 billion in 2028 at a CAGR of 10.9% during the 2021-2028 period. The significant change in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.
Video conferencing is a real-time visual communication session between one or more users, irrespective of their locations. Integration of advanced technologies such as the internet of things (IoT), artificial intelligence (AI), and cloud technology is expected to drive the growth of the market in the forthcoming years. Besides, the increasing demand for visual communication on account of globalization, remote workforce management, and rising internet penetration are factors influencing the growth of the market. Video collaboration solutions aid organizations and enterprises in making faster decisions, eliminating high costs associated with traveling from one place to another for meetings.
Implementation of Innovative Solutions to Ease Business Operations 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, 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.
Also, various law enforcement agencies and governments focus 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 conferencing.
In the present situation, most government and corporate enterprises have adopted the Work from Home policy to prevent the spread of the virus. Hence, they are increasingly adopting video collaboration solutions to track work-related meetings and activities. For instance,
These initiatives are expected to fuel the demand for the product during the foreseeable future.
Request a Free sample to learn more about this report.
Adoption of Video Banking to Boost Demand
The growing trends of implementing video banking solutions owing to the growing penetration of mobile and online banking among users are expected to accelerate the video conferencing market growth. Video banking solutions help customers to reduce travel time and expenses. In addition, video banking allows end-users to communicate securely, and connect with remote clients and coworkers, thereby improving operational efficiency. Hence, there is 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 Preference for Remote Learning to Drive Market Growth
Various colleges, universities, schools, and K-12 districts have started shifting to distance learning as an alternative to traditional classrooms. Today, with the pandemic impact, more educational institutes collaborate with video communication providers to extend remote learning. Hence, educational institutions need to deploy robust software to deliver an efficient learning experience in the current situation. Further, many students may lack the software tools they require, such as Microsoft Office, Adobe, and others on their devices. These solutions enable the students to access the online classes from their own devices. It enables the teachers to share screens, documents, and files while teaching.
Due to distance learning, it is difficult for faculty and students to receive help in case of any technical issue with the devices. The technology enables the IT teams to provide assistance to the faculties and students and provide seamless distance learning. Hence, all these aspects contribute to the fact that the growing adoption of remote learning practices is likely to drive the adoption of the solutions for the long term. Thus, propelling the growth of the global market 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. The 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, the limited functionality provided by these solutions and the lack of expertise among software engineers and developers will hinder the market.
Rapidly Growing Video Conferencing Solution to Fuel Market Growth
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 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, etc.
Increasing Implementation of Solution to Boost Service-based Conferencing System
Based on the conference type, the market is categorized into telepresence systems, integrated systems, desktop systems, and service-based systems.
The telepresence system segment is expected to gain maximum share and rapid growth during the forecast period. This system uses sophisticated technology, allowing the meeting to be streamed with high-quality video and audio.
The desktop system segment is anticipated to exhibit significant growth, as it is a flexible, reliable, and cost-effective video conference type deployed across various verticals.
The service-based conferencing system segment is expected to exhibit the highest CAGR after the telepresence system 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. Thus, with these factors this market is expected to gain significant growth.
Rising Demand for Cloud-Based Deployment Across Enterprises to Support Market
Based on the deployment segment, the market 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 market's growth in the near future.
Growing Investments in Video Communication Solution by Large Enterprises to Drive Market Growth
Under the enterprise size segment, the market is divided into small & medium enterprise and large enterprise.
As these SMEs have limited funds for the businesses, adopting a video communication solution is low due to minimal investments. However, SMEs are foreseen to enhance their customer relationship, communication between sales and marketing teams, remote location new product launches, among other activities using the video conferencing solution in coming years. SMEs are therefore anticipated to witness strong growth during the forecast period.
The large enterprise segment is expected to hold a higher market share during the forecast period. The rising adoption of these solutions to establish collaborations among the employees located in different locations is likely to drive the market. Video communication technologies allowed large enterprises to increase operational efficiency and gain a better customer experience.
To know how our report can help streamline your business, Speak to Analyst
Huddle Rooms to Gain Rapid Traction Owing to Low Cost of Operation
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 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, 2020 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America is expected to dominate the global video conferencing 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, Cisco Systems, Inc., and others are boosting the demand for these conferencing solutions across the US and Canada.
Latin America is expected to showcase steady growth owing to the increasing government support in its countries.
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 strategies to enhance their product portfolio. The aim is to expand the simple, fast, and cost-efficient teams meeting product offerings for large and medium enterprises. The region is expected to exhibit enormous growth potential in the market, owing to the existence of a considerable number of SMEs and a huge number of headquarters of global top 1000 companies in the region.
The market in Europe is expected to rise at a substantial compounded annual growth rate CAGR during the forecast period. The growth is attributable to the presence of a considerable number of video collaboration solution providers. The region is witnessing increasing enterprise and commercial markets. Furthermore, increasing investments by the firms in research & development is expected to enhance the market share of Europe in the coming years.
The market in the Middle East & Africa is 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 Strengthening Market Position by New Launches and Developments
The key players in the market focus on strengthening their market position by upgrading their existing product lines to cater to the various enterprise applications. These players are also developing new solutions by integrating advanced technology such as AI, ML, cloud, and others to enhance their products and deliver enhanced solutions.
The rapidly growing competition in the market forces prominent players to introduce advanced video collaboration services to gain new customers. 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.
December 2020 – Cisco Systems, Inc. introduced Webex Devices, namely, Webex Desk Camera, Webex Desk, and Webex Desk Hub, to empower the remotely working environment. These products are also promoting hybrid workplaces.
July 2020 – Plantronics, Inc. launched its new video conferencing room solution series such as Poly G40-T, G80-T, and G10-T for the Microsoft Teams rooms. The aim is to deliver superior meeting experiences for the Microsoft Teams users.
An Infographic Representation of Video Conferencing Market
To get information on various segments, share your queries with us
The global market research report highlights leading regions worldwide to offer a better understanding of the user. Furthermore, the report provides insights into the latest video conferencing market 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.
Value (USD Billion)
Component; Conference Type; Deployment; Enterprise Size; Application; and Geography
By Conference Type
By Enterprise size
The market is projected to reach USD 12.99 billion by 2028.
In 2020, the market stood at USD 5.77 billion.
The market is projected to grow at a CAGR of 10.9% during the forecast period.
The solution segment is likely to lead the market.
The increasing adoption of remote learning solutions is expected to drive market growth.
Cisco Systems, Inc., Verizon Communications Inc., Polycom Inc. (Plantronics, Inc.), Alphabet Inc. (Google LLC), Adobe Systems, Microsoft Corporation, Vidyo Inc., Zoom Video Communication Inc., Logitech International S.A., among others are the top players in the market.
North America is expected to hold the highest market share.
The small room segment is expected to grow with the highest CAGR.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry