Video Conferencing Market

Market Overview

The global video conferencing market share is expected to grow at a CAGR of 15.45% during the forecast period (2021–2030).

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 Trend to Boost the Global Market Growth

Due to government regulations during 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 effectively communicate in a synchronized manner. Thus, ensuring businesses a productive outcome.

Moreover, quarantines, cancellations, and WFH policies have significantly driven the demand for video-calling Software in the past few months. Video conferencing is still in use and has kept business continuity by bringing the world closer. Company employees living in different countries or geographic locations can still efficiently work from home and simultaneously deliver the desired results to the companies.

Growing Preference for Remote and eLearning

To use distance learning as a replacement for traditional classrooms, organizations, schools, universities, and K–12 have adopted conferencing solutions. As a result of the pandemic, more academic institutions are working with video communication services to increase remote learning. As a result, educational institutions are using Software to give students a productive learning environment. Software like Adobe, Microsoft Office, and others also allow users to access online courses from their mobile devices. Additionally, it enables teachers to share files, papers and displays with the class at any time. Additionally, these initiatives will help the global video communication sector grow the video conferencing market.

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, and region.

The market segment is divided into hardware, solutions, and services by component. 

The hardware segment has shown the fastest CAGR at ~14.82% and dominates 43.57% of the market. The reason is that it reduces business travel costs, creating many opportunities for industry players. Major market segment components that provide a scope are multiple control units, complex codecs, 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 among all the others available in the market. It projects a CAGR of ~16.45% by the end of 2031. This system is set up on-site and stimulates the feeling of being together in the same room. Telepresence systems favor special touches and elements such as lighting, room décor, furniture, fixtures, etc. These ensure the best video and audio quality for 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 most significant 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 I.T. infrastructure.

Higher accessibility is made possible by cloud technology, which makes it simple to use video conferencing services on various platforms, including laptops and mobile devices. The segment's expansion is also strongly supported by the growing use of the Software as a Service (SaaS) platform, which has drawn numerous small and medium-sized businesses. According to predictions made by Amazon Web Services, Inc, in India, small and medium-sized businesses are anticipated to dominate the cloud market by 2022.

By application, the market is bifurcated into Corporate, Education, Healthcare, Government and Defense, BSFI, and Others.

Due to the pandemic, when the companies were mandated to let the employees work from home corporate sector became the most significant consuming sector in terms of application. It projected a CAGR of ~14.53% and may have consistent growth as the companies have started adopting remote working. 

The public sector businesses are now adopting conferencing solutions to increase efficiency and productivity; the government and defense sector, which in 2022 accounted for about 6.0% of total revenue, is emerging as a promising segment. These services allow government agencies to involve more people, which aids in quicker decision-making. As government organizations emphasize cost control, look to replace traditional telecom equipment, and demand better connectivity with their mobile workforce, cloud-based solutions are predicted to gain a ton of traction in this market.

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.