The video conferencing market has seen significant growth in the last 2 years as work from home trend came into play. It helps the user to talk over a video/audio call. The 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 global video conferencing market share is expected to grow at a CAGR of 15.45% during the forecast period (2021–2030).
Due to government regulations on the pandemic, companies had to adapt to the work from home method to keep going. The businesses sustained as the communication was not hindered owing to the feasibility of video conferencing. This has given rise to the demand for essential office tools that are effective to have communication in a synchronized manner. Thus, ensuring businesses a productive outcome.
Moreover, quarantines, cancellations, and WFH policies have greatly driven the demand for video-calling software in the past few months. Video conferencing is still in use and has kept the business continuity by bringing the world closer. Company employees that live in different countries or geographic locations can still efficiently work from home and at the same time deliver the desired results to the companies.
Even though the global video conferencing market share has seen a surge in demand it has also seen astonishing negative effects due to data privacy and safety issues. Due to the high demand for video conferencing tools in the market, it has also seen the fastest provision of products. This has also resulted in data privacy and safety issues that have seen a surge with the rising demand for these tools. This has also made people vary in the choices in the products they use.
While these products are very easy to use they also lack in providing enterprise-grade security protocols. Organizations may face safety issues for their products and private data and this may cost them a hefty amount of loss. Adopting the growing remote workforce, the safety of private data has become an important 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 encryption of the conversation.
The development of 5G technology that uses Voice over Internet Protocol (VoIP) proves to be an upcoming technology and creates a trend shift in the market. The companies in the developed economies such as the US, the UK, and Germany seem to have generated huge opportunities out of this technology. This might prove to 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 the 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.
To grow the reach, especially with remote customers and workers, video conferencing has been proved to be a boon. As per the government regulations that companies had to let the employees work from home, video conferencing became an essential tool for the communication between employees to keep a smooth working nature of the job. From the beginning of February 2021, there was seen a 20% increase in the usage of the video conferencing application, GoToMeeting worldwide. This was in an effort to control the spread of the virus.
This need for conducting the business without any communication gaps is a must, which had surged the demand for the new tools in the market. The key players in the markets jumped in to grab this opportunity. The world needed good quality products that are easy to use and the market leaders did not disappoint. Key players entered this market with their upgraded versions of the tools like GoogleMeet, MicrosoftTeams, Zoom, etc. The businesses have started adopting these tools diligently and hence showcasing promising global video conferencing market growth.
The Centers for Disease Control and Prevention had earlier suggested remote work to get control over the spreading of the infection. This made people that were working remotely rely on the video conferencing systems, which indeed increases the web traffic worldwide. This means, that both ISPS and video conferencing providers will have to upgrade their services to meet this massive upsurge in demand without compromising the quality.
The updation in terms of quality, accessibility and data privacy and security are some of the factors that the big players will have to consider while considering making changes into these tools. Quality of the product and the delivery speed are two major factors that will conclude the growth of these tools.
The global video conferencing market size is segmented based on component, type, deployment, application, and region.
By component, the market segment is divided into hardware, solutions, and services. The hardware segment has shown the fastest CAGR at 14.82% and also dominates the 43.57% of the market. The reason being that it reduces the business travel costs creating a lot of opportunities for industry players. Major components of this market segment that provides a scope are multiple control unit, hard codec, and peripheral devices. Companies are trying to find a solution to enhance the interaction amongst the geographically dispersed team.
By type, the market is segmented into room bases, telepresence, and desktop. The telepresence segment is the most expensive amongst all the others available in the market. It projects a CAGR of 16.45% by the end of 2030. This type of system is set up on-site and stimulates the feel of being together in the same room. Telepresence systems favor special touches and elements such as lighting, room décor, furniture, fixtures, and others. These assure the best video and audio quality to users thus, making it the most wanted type of product.
By deployment, the market is divided into on-premise or cloud-based platforms. The on-premise deployment segment shows significant growth over the forecast period at a CAGR of 15.31%, which also helps us understand that it holds the biggest market share at 64.9%. On-premise use needs an enterprise license or copy of that software. It has higher procuring costs as compared to the cloud computing environment. It is deployed in-house and embedded into the company’s IT infrastructure.
Due to the pandemic when the companies were mandated to let the employees work from home corporate sector became the biggest consuming sector in terms of application. It projected a CAGR of 14.53% and may have a consistent growth as the companies have started adopting remote working. In 2021, it generated a revenue of USD 13,047 million alone. By application, this market is segmented into corporate, education, healthcare, government and defense, BSFI, etc.
Based on region, the global market is segmented into North America, Europe, Asia-Pacific, South America and the Caribbean, and the Middle East & Africa. America as a region has been a major contributor to the global video conferencing industry because it is very adaptable and inclusive in nature. It has covered 34.7% of the global market followed by Europe at 29.8%. America has generated a revenue of USD 6073 million alone in 2018. This number only keeps growing and thus, projects a CAGR of 14.72% during the forecast period.
America has proven to be one of the most adoptive regions in terms of new technology. This quality is supposed to help America lead this market in the upcoming years. It resulted in an increased demand for virtual meetings that possess stability and quality, with good internet access. It has generated huge profits for the global video conferencing market share. People have started adopting virtual private networks across business enterprises and educational universities, which in turn will boost market growth.