Video Conferencing Market Size, Share & Trends Analysis Report By Component (Hardware, Solutions, Services), By Type (Room Bases, Telepresence, Desktop), By Deployment (On-Premise, Cloud-Based), By Enterprise Size (Small and Medium Enterprise, Large Enterprise), By End-User (Corporate, Education, Healthcare, Government and Defense, BSFI, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global video conferencing market size was valued at USD 23.56 billion in 2023 and is projected to reach USD 55.52 billion by 2032, registering a CAGR of 11.31% during the forecast period (2024-2032).

The video conferencing market has seen significant growth in the last two years as the work-from-home trend came into play. It helps the user to talk over a video/audio call. Video conferencing technology helps in transmitting the signals of video and audio, thus making it easier for the user to communicate in real-time. 

The trend toward remote work geographically dispersed business operations, and increased globalization are the main drivers of this growth. Additionally, the expanding market is fueled by the rising demand for video conferencing solutions in the healthcare and education sectors.

Market Dynamics

Global Video Conferencing Market Drivers

Work From Home (WFH) Trend to Boost the Global Market Growth

In order to maintain the operation of their businesses during the pandemic, companies were compelled to adjust to the work-from-home approach by government regulations. The businesses maintained their operations as a result of the feasibility of video conferencing, which did not impede communication. This has led to an increase in the demand for essential office tools that facilitate synchronized communication. Additionally, the market was driven by a combination of quarantines, cancellations, and WFH policies, which ensured that businesses achieved a productive outcome. Additionally, employees were able to work for a company located on a different continent.
This has resulted in an increase in the demand for video-calling software in recent years. Video conferencing remains in use and has maintained business continuity by bringing the world closer. For example, the World Bank Data indicates that India's labor force is 593 million, and it is anticipated that 60 to 90 million Indians will be working remotely. This equates to approximately 10.12% to 15.17% of the Indian workforce, according to CXOToday.

Growing Preference for Remote and eLearning

Organizations, schools, universities, and K–12 have implemented conferencing solutions as an alternative to conventional classrooms in order to implement distance learning. In response to the pandemic, an increasing number of academic institutions are collaborating with video communication services to enhance remote learning capability. Consequently, educational institutions are implementing software to provide students with a productive learning environment. Users can also access online courses from their mobile devices using software such as Adobe and Microsoft Office. Furthermore, it allows educators to share files, papers, and displays with the class at any given moment. Furthermore, these initiatives will contribute to the expansion of the video conferencing market in the global video communication sector. For example, in January 2023, the European School of Osteopathy, which is located in England, announced a partnership with the YuJa Enterprise Video Platform to distribute its course content both domestically and internationally via the video conferencing platform.

Global Video Conferencing Market Restraints

Privacy Issues to Hinder the Global Market

Even though the global video conferencing market share has seen a surge in demand, it has also seen astonishing adverse effects due to data privacy and safety issues. Due to the high demand for video conferencing tools, it has also seen the fastest provision of products. This has also resulted in data privacy and safety issues that have surged with the rising demand for these tools. This has also made people vary in the choices of the products they use.

While these products are straightforward, they must also provide enterprise-grade security protocols. Organizations may face safety issues for their products and private data, which may cost them a hefty loss. Adopting the growing remote workforce, the safety of private data has become a significant challenge to deal with. Solution providers are expected to buckle up to provide enterprise-grade collaboration. This may bring a seamless and secure solution that will provide end-to-end conversation encryption.

Global Video Conferencing Market Opportunity

Development of Technologies to Create New Growth Avenues for the Global Market

The development of 5G technology that uses Voice over Internet Protocol (VoIP) is an upcoming technology and creates a trend shift in the market. Companies in developed economies such as the U.S., the U.K., and Germany have generated tremendous opportunities from this technology. This might become a game-changer as reaching remote places and expanding into new geographic locations become advantageous.

In an attempt to generate revenue, market players such as Cisco Systems, Inc. and Microsoft Corporation are on the for-side of developing video conferencing systems that automatically route the call over the VoIP network. In June 2018, Cisco Systems, Inc. launched its Cisco Webex Edge Connect, which uses Cisco Systems, Inc.'s Unified Communications Manager, which automatically routes the call over the VoIP network. Thus, the market has witnessed remarkable growth due to the increasing adoption of cloud-based communication solutions, such as AvayaLive Video and Zoom.

Regional Analysis

Depending on the region, the market is analyzed in North America, Asia-Pacific, Europe, and LAMEA. North America dominates the market.

North America has been a major contributor to the global video conferencing industry because it is adaptable and inclusive. It has covered 34.7% of the global market. This market only keeps growing and, thus, projects a CAGR of ~14.72% during the forecast period. America has proven to be one of the most adaptive regions regarding new technology. This quality will help America lead this market in the upcoming years. It resulted in an increased demand for stable and quality virtual meetings with good internet access. It has generated enormous profits for the global video conferencing market share. People have started adopting virtual private networks across business enterprises and educational universities, which will boost market growth.

Through 2031, the Asia Pacific video conferencing market is anticipated to grow at a CAGR of over ~15.2% due to the adoption of new working practices by local businesses. Numerous businesses were forced to implement remote working due to the COVID-19 pandemic, which aided in the growth of high-quality internet infrastructure in the area. As a result, there was a sharp increase in demand for accessories, collaboration tools, and video conferencing hardware. Additionally, developing mobile broadband technologies, such as WiMAX and High-Speed Downlink Packed-Access (HSDPA) networks in nations like India and Japan, will hasten the market's expansion.

Segmental Analysis

The global video conferencing market size is segmented based on component, type, deployment, application, enterprise size, end-user and region.

By Component

Hardware, Solutions, Services

In terms of components, the solutions segment dominates the global video conferencing market. A variety of solutions, including the capacity to centralize, manage, and deliver video in a secure manner, are made available to businesses. Starting from the beginning stages of video capture and ingest and continuing all the way through the final stages of distribution to end-user devices, the solutions provide assistance in managing each and every step of the process. It is anticipated that the market will be responsible for the largest share of the video conferencing market during the period of forecasting. This is due to the fact that the market is responsible for the growing demand for video conferencing solutions across a wide range of industries, including Microsoft Teams, Google Meet, Zoom, and Other alternatives.

By Type

Room Bases, Telepresence, Desktop

The global video conferencing market is dominated by telepresence systems. In the Type segment, Telepresence possessed the most market share on a global scale. It anticipates a compound annual growth rate (CAGR) of 16.45% throughout the forecast period. This system is installed on-site and creates the impression of being in the same room. Lighting, room décor, furniture, fixtures, and other special touches are prioritized by telepresence systems. These guarantee the highest quality of audio and video for users. As a result, it has become the most sought-after product.

The desktop system is anticipated to experience the most rapid growth during the forecast period, with the highest compound annual growth rate (CAGR). The desktop system is a cost-effective, dependable, and highly versatile video communication solution. Additionally, these desktop systems are extensively employed in a diverse array of sectors, such as aerospace and defense, media and entertainment, and education.

By Deployment

On-Premise, Cloud-Based

The on-premise deployment segment is expected to experience substantial growth over the forecast period, with a compound annual growth rate (CAGR) of approximately 15.31%. This growth is indicative of the fact that the on-premise deployment segment had the largest market share at 57% in 2023. Industry compliance with stringent data security regulations, existing investments in IT infrastructure, and challenges related to internet reliability, latency, and bandwidth are the primary factors driving the expansion of on-premise. In addition, there are other factors that contribute to the growth, such as the growing demand for scalable, flexible advancements in cloud technology that improve security and interoperability.

From 2024 to 2032, the cloud-based segment is anticipated to exhibit the highest compound annual growth rate (CAGR) of more than 10%. This cloud-based segment is being propelled by the growing demand for flexible work environments and the enhancement of overall productivity. Additionally, they enhance collaboration among customers, partners, and suppliers, while simultaneously reducing operational costs and increasing business scalability.

By Enterprise Size

Small and Medium Enterprise, Large Enterprise

The enterprise size segment of the global market is dominated by large enterprises. Additionally, it maintained the highest market share in 2023. The high adoption of video conferencing solutions among these enterprises for business communications across geographies is the primary factor driving the growth of this segment. Consequently, major market players are emphasizing the development of offerings that can meet the requirements of multinational enterprises. This drives the market's expansion.

For instance, in August 2022, Barclays Bank PLC implemented Microsoft Teams as its preferred collaboration platform, which resulted in an increase in demand, as it enabled collaboration among over 120,000 colleagues and service partners in strategic locations worldwide.

By End-User

Corporate, Education, Healthcare, Government and Defense, BSFI, Others

The global market is dominated by the corporate end-user segment. Many individuals are participating in the Work from Home (WFH) trend, which is the primary factor contributing to the expansion of this market. An additional motivating factor for this sector is remote work, which enables employees from various countries to collaborate and communicate effectively through video conferences.

During the forecast period, the Education segment is anticipated to exhibit the highest CAGR. The trend of eLearning is the primary factor driving the growth of this segment, and it is expected to continue to expand. Remote or e-learning options are being offered by numerous institutions and platforms. This indirectly contributes to the market's expansion.

Impact of covid-19

In the wake of COVID-19, the global market analysis witnessed a slowdown in demand, with companies delaying the innovations and investments in the market. The automotive industry, which is the end-user of head-up displays, noted a steep decline in production. The consumer demand for automobiles also declined due to the economic crisis caused by the pandemic.

Market Recovery Timeline and its Challenges

The post-pandemic period will be crucial for the global market analysis. The recovery can be hindered by supply chain disruptions, which will affect the market dynamics and the prices of the product. Furthermore, unfavorable financial conditions, drop in sales, prices, and product demand, and ascended expenses due to restrictions in distribution and transportation capabilities, will pose challenges for the global market.

In addition, limited production, support operations, labor shortages, and many constraints for other end-user sectors, suppliers, and vendors may fail to meet the consumer demand. Overall, the recovery will be challenging for the global market. Nonetheless, the growing demand for ADAS in autonomous vehicles and the rapid adoption of connected vehicles is liable to present lucrative opportunities in the next decade. The application of head-up displays in smart helmets, military applications, the aviation industry, etc., is also expected to boost the head-up display market size in the upcoming year.

Recent Developments

• In December 2022, Google announced that the Google Cloud Pub/Sub team actively supports the Pub/Sub Group Kafka Connector, which is now generally available.
• In November 2022, To create a platform for next-generation customer data with a focus on privacy, security, and compliance, Zeotap partnered with Google Cloud.
• In November 2022, New Surface devices from Microsoft ushered the Windows P.C. into the next phase of computing.
• In November 2022, Six new partner solution specializations are offered by Cisco to satisfy customer demand.