Video as a Service (VaaS) Market Size, Share & Industry Analysis, By Deployment (Public Cloud, Private Cloud, and Hybrid Cloud), By Application (Corporate Communications, Training and Development, and Marketing), By Industry (BFSI, IT & Telecom, Healthcare, Retail & Consumer Goods, Education, Government, and Others (Manufacturing and Others), and Regional Forecast, 2024 – 2032

The global video as a service (VaaS) market size was valued at USD 4.85 billion in 2023 and is projected to grow from USD 5.57 billion in 2024 to USD 19.36 billion by 2032, exhibiting a CAGR of 16.8% during the forecast period (2024-2032).

Video as a service is a part of Software as a Service (SaaS). Video as a service delivers video conferencing capabilities over an Internet Protocol (IP) network. The video conferencing service offers the infrastructure required for linked communication. Along with this, the host maintains the communication channel between endpoints. It includes visual connections between two or more people in real-time. Video as a Service (VaaS) also provides full-motion video transmission with high-quality audio between locations. Video as a service platform is reliable for all types of enterprises, such as large enterprises and SMEs to conduct one-on-one meeting or a large video conference.

Video as a service solutions have considerably sped up the demand for video conferencing and collaborations. This factor indicates that the VaaS market is growing at a significant pace. Also, the COVID-19 pandemic proved to be a catalyst for the faster adoption of video conferencing solutions. This was due to the transition of businesses to a hybrid mode, which further created a robust demand for real-time and remote access video services to connect with clients. The video as a service market growth is gaining traction, especially across medium and large-scale enterprises.

The key players operating in the market, such as Zoom Video Communications, Inc., Microsoft, Cisco Systems, Inc., Avaya LLC, and others, are making investments in video conference technologies. Along with this, governmental support to adopt collaboration services and increasing demand for real-time and remote access video services will drive the market growth. However, data security and privacy issues may hinder the market progress. To cope with this, the key players are trying to adopt advanced technologies and enhance their solutions. For these reasons, the market is expected to grow significantly in the coming years.

For instance, in November 2023, Amazon Web Services (AWS) extended its partnership with VMware and other players to work on an EdgeAI project. The network combines AWS’ services & infrastructure, Deutsche Telekom's connectivity services, OGA grid nodes, VMware's multicloud telco platform, and network function ISVs. It highlights the uses of AI-supported Video-as-a-Service, which controls distributed AI & centralized analytics, and real-time resource allocation.

Video as a Service (VaaS) Market Trends

Integration of Advanced Technologies in Existing Service Solutions Created Huge Customer Base

Key players operating in the market are continuously enhancing their existing video as a service solutions to keep up with the changing user requirements. Integrating advanced technologies, such as Artificial Intelligence (AI) and Machine Learning (ML), has facilitated advancements in these solutions. AI plays an important role in modern communications. It serves multiple purposes such as background noise minimization & motion tracking, intelligently transcribing the meeting & providing captions in real-time, post-meeting analytics, and more. Companies have realized the importance of using these technologies across their solutions and are investing in developing upgraded solutions. In 2023, Zoom, one of the key players of the VaaS market, made significant advancements in AI-driven solutions. The company introduced upgraded features to Zoom IQ to bolster productivity and enable more effective collaborations. Thus, technological advancements in existing service solutions will positively influence the growth of the global market.

According to Qualcomm research, 64% of organizations claimed that AI enhances customer relationships and maximizes overall productivity. Moreover, the market is witnessing a greater adoption of such solutions among content creators, thus driving the market growth. For instance, in April 2023, Centriq launched a video as a service platform to aid organizations in meeting the rising video content demand. Centriq Studios provides the equipment, space, and support needed to produce exceptional videos for content creators.

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Video as a Service (VaaS) Market Growth Factors

Growing Demand for Video-based Communications to Positively Influence Market Growth

With the growing globalization of companies, the need for cost-effective, scalable communication through video conferencing and communication solutions has grown consistently. Deploying collaboration tools enhances business communications and customer experience, and minimizes travel costs. Along with this, the growing demand for video as a service solutions across several industries has positively influenced the market growth. The players operating in the market are investing in video conferencing-related tools and engaging in strategic partnerships to strengthen their presence in the global market. The technological advancements have given a significant push to the demand for these solutions. Improvements in 5G technology are expected to enhance communication, offer high-quality experience for cloud video services, increase demand for cloud technologies, and more. The key players are yet to realize the full potential of the 5G advancements. Additionally, the growing demand for video conferencing tools across governmental bodies and education sector is anticipated to positively affect market growth. For instance, in August 2021, Shikho, an edtech startup, and Teachmint, a teaching platform, partnered to offer classroom solutions to students in Bangladesh utilizing Teachmint's live class technology infrastructure.

RESTRAINING FACTORS

Data Security and Privacy Concerns to Hinder Market Growth

At times, while delivering video conferencing capabilities, multiple false alarms are produced, leading to security breaches. The major concern for end users is security; if that requirement isn’t fulfilled, the market is prone to witness a notable decline in its growth. However, the key players operating in the market are addressing these concerns by adopting advanced technologies and enhancing their service solutions. Along with this, fluctuations in the quality of the video, inadequate integration or lack of system synchronization, data security, and privacy concerns are certain factors restraining the market growth.

Video as a Service (VaaS) Market Segmentation Analysis

By Deployment Analysis

Increasing Popularity of Public Cloud Solutions to Increase Demand for VaaS Solutions

Based on deployment, the market is divided into the hybrid cloud, private cloud, and public cloud. Currently, the market is governed by public cloud video service deployments due to the growing demand for scalable, secure, and cost-effective services across enterprises.

The hybrid cloud segment is expected to grow significantly in the coming years. The model maintains the organization’s external capabilities with a greater public cloud provider and retains lesser significant workloads at its existing private cloud or on-premises. Moreover, video services' private cloud deployment model is expected to grow steadily.

By Application Analysis

VaaS Solutions to be Widely Used in Corporate Communications due to their Lucrative Benefits

Based on application, the market is divided into corporate communications, training and development, and marketing. Among these, corporate communications hold the largest share of the global market. During the pandemic, businesses witnessed the profound benefits of using video calling in corporate communications. According to a report published by Zoom, 72% of organizations claimed an increase in client collaborations through video conferencing. The corporate space will continue to dominate the market in the coming years as the sector is expected to advance in instant on-demand communications and maintain strong relationships with customers, partners, suppliers, and internal stakeholders.

Furthermore, the training and development segment will grow steadily, owing to the increasing demand for advanced video conferencing solutions for training purposes. Moreover, businesses are yet to realize the complete effectiveness of video marketing, owing to the slower growth rate of marketing applications in the global market.

By Industry Analysis

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Effective Consultations Provided via VaaS Solutions to Drive Their Use in Healthcare Industry

Based on industry, the market is divided into BFSI, IT & telecom, healthcare, retail & consumer goods, education, government, and others (manufacturing and others). Among these, the healthcare segment holds the largest video as a service market share. The healthcare industry is among the early adopters of video as a service solutions as using secure video chat enables more effective consultations. Along with this, the services allow patients’ consultations over vast distances without sacrificing the protection of patient data and minimizing the risk of infection.

The BFSI segment is expected to grow significantly in the coming years as well, recording the highest CAGR during the forecast period. Higher levels of customer satisfaction will majorly influence the segment’s growth. For instance, according to TrueConf, 85% of online video banking users reported that they are satisfied with the services provided and would continue with the same in coming years. These percentages indicate rising demand for video as a service solutions in recent years. Furthermore, the demand for VaaS solutions in IT & telecom, retail & consumer goods, and education sectors is expected to grow steadily in the coming years.

REGIONAL INSIGHTS

On a geographic level, the market is studied across five regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific.

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Among these, North America dominates the market owing to the early adoption of advanced technologies. The region also ranks higher with respect to adoption of cloud services and end-users' readiness to adopt advanced services. Additionally, the presence of major market players, such as Microsoft, Zoom Video Communications, Inc., and others has positively impacted the North American market share.

Furthermore, Asia Pacific is expected to grow significantly during the forecast period. This noteworthy growth is attributed to the regional governments’ push toward implementing video conferencing tools. For instance,

• April 2022 – The Kerala government decided to use ‘VConsol,’ a video conferencing platform for video conference meetings. The newly launched platform, ' KeralaVC,’ ensured advanced data security and privacy. Several central government departments are using a similar platform called ‘BharatVC.’ However, the state government uses platforms, such as Zoom, Microsoft Teams, and others for video conferencing.

The region has also witnessed a rise in demand for video collaboration solutions across the education and research sectors. Thus, the growing demand for collaboration solutions, emerging players, and government initiatives encouraging video conferencing tools will pave the way for the regional market in the coming years.

Europe is expected to grow steadily as the region has many enterprise and commercial markets. Another reason marking the regional market’s steady growth is increased corporate investments in research & development.

Conversely, the MEA and South America regions are expected to grow slower than the other regions in the global market. However, the regions hold great potential to expand their VaaS offerings and enter the international market. For instance, in December 2023, DistroScale, a video-as-a-service platform, and African Movie Channel (AMC) partnered to debut the AMC’s channel Nolly Africa HD, a 24-hour free ad-supported streaming television, on the DistroTV platform.

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List of Key Companies in Video as a Service (VaaS) Market

Continuous Investments of Key Market Players to Pave Way for Strong Market Growth

Key players operating in the market are continuously investing in video communications and related technologies to keep up with the market trends. These players are incorporating advanced technologies, such as AI and machine learning, into their existing solutions to attract a new customer base. The key players are also strategically collaborating with others operating in similar markets. Key companies adopt this strategy to integrate the best of their capabilities with the best of partnered companies’ expertise and develop enhanced solutions for customers. This business strategy also increases the company’s market share and presence.

List of Key Companies Profiled:

• Microsoft (U.S.)


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


• Cisco Systems, Inc. (U.S.)


• Adobe (U.S.)


• Avaya LLC (U.S.)


• GoTo (U.S.)


• RingCentral, Inc. (U.S.)


• Google (U.S.)


• Amazon Web Services, Inc. (U.S.)


• Plantronics, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2023: ArcGIS launched ArcGIS Video Server for ArcGIS Enterprise that is specially designed to expand video capabilities across the firm. The server allows searching, streaming, indexing, and publishing video as a service with temporal and geospatial context.


• November 2023: Cineverse Corp., an entertainment company, and Amagi,  a cloud-based SaaS technology broadcast provider, partnered to provide a FAST kit for Video Service Providers (VSPs). It consists of content acquisition, monetization services, curation services, and SaaS solutions for FAST that will be offered as a managed service.


• September 2023: Codemill launched Accurate.Video as a Service made by Launch Template Architecture (LTA). It enables the integration of any current platform or service with an Accurate.Video frontend web application.


• June 2023: Zoom partnered with Sony to launch its video communication & collaboration platform on BRAVIA TVs. The company aims to enable its customers to connect with coworkers in hybrid or remote working models for video meetings. This partnership aims at enhancing the end users’ video communication on a large TV screen in the living room.


• June 2023: Qualcomm Technologies introduced a video collaboration platform suite that includes the VC1, VC3, and VC5 products. With this launch, the company will enable its OEM customers to develop and install video-conferencing products with advanced video, audio, and AI capabilities.

REPORT COVERAGE

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The report navigates the reader through a detailed analysis of the market by focusing on key aspects, such as prime players, solution/service types, and leading practical applications of the solutions. Besides, it highlights the ongoing trends and recent developments in the market. Additionally, the report covers all the factors that have influenced the global market growth in recent years.

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