The global web real-time communication market size was valued at USD 5.5 billion in 2021 and is projected to reach USD 128 billion by 2030, registering a CAGR of 41.9% during the forecast period (2022 – 2030). WebRTC, also known as web real-time communication, is an open standard project that consists of APIs and communication protocols to enable peer-to-peer audio, video, and data communication between two web browsers or mobile applications without the use of additional plugins or the download of native apps. This provides text chats, typically in web browsers, peer-to-peer file sharing, video chat, video calling, and voice calling. Peer-to-peer communication technology like WebRTC does away with the extra fees for using bandwidth across the wire. It has a quick response time and strong performance. WebRTC can be used for many things, including straightforward voice and video chat, online multiplayer gaming, file sharing, voice and video conferencing, and more.
Some of the essential drivers driving the growth of the worldwide web real-time communication market are the cost-effective advantages of WebRTC technology, the webification of real-time communication, and the rise in business use of WebRTC technology. Additionally, rising smartphone usage, particularly in Asia-Pacific, increased internet connectivity, and the development of necessary internet infrastructure in Asia-Pacific and Africa all contribute to the market's growth. Contrarily, the proliferation of the BYOD trend, the rise in the usage of WebRTC for IoT, and the integration of AI with WebRTC offer the market for WebRTC significant growth potential over the study period.
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Cost-Effective Benefits of WebRTC Technology
Solutions based on WebRTC are less expensive because they don't need any additional software or plugins to function correctly. Any web server may use WebRTC to provide a unique real-time communication experience with outstanding reliability, simplicity, and affordability. Browser-based applications may now mimic real-time user experiences thanks to WebRTC. Additionally, it provides secure web communication at cheap costs and significant benefits, including simple deployment across various operating systems and diverse device kinds, among others. Due to these crucial advantages, WebRTC technology is now in high demand among several small and medium-sized businesses.
Increase in the Adoption of WebRTC among Enterprises
WebRTC facilitates enterprise customers to directly interact with a person at low costs & without downloading any plugins or picking up a phone to dial. Through WebRTC, enterprises can host external and internal meetings using a web browser instead of a separately installed app. Global communications are set free from their current expensive per-minute charges for enterprises. They significantly improve the user's experience of starting her conversation directly from an application or a specific website. In addition, as WebRTC standards become more familiar for developers, more ubiquitous businesses are likely to develop their WebRTC applications to benefit from the functionality and cost savings. For instance, SAP is adding rich communications and collaboration into its software to improve workflow & enable sales professionals to chat, videoconference, and collaborate in real-time with their customers and co-workers.
Lack of Universal Standards
Universally accepted standards for WebRTC are being developed as they lack pervasive acceptance. It is being developed by the World Wide Web Consortium (W3C) and the Internet Engineering Task Force (IETF). This is expected to impact the adoption of WebRTC among enterprises negatively. Further, problems arising with interoperability due to lack of signaling protocol are causing difficulty between different WebRTC applications. This puts greater responsibility on developers because they must bridge interoperability gaps between other WebRTC solutions.
Rapid Adoption of BYOD Trend
With the increased use of BYOD (Bring Your Own Device) in the workplace, enterprises are expected to take advantage of advanced communication technologies such as WebRTC and HTML5. Enterprises are anticipated to offer their employees the ability to work through their own devices, which implies the provision of HTML5 services that can run through web browsers such as Mozilla Firefox and Google Chrome or allows work-related applications to connect to the enterprise data. WebRTC offers a feasible solution by providing secure communication that can run on web browsers and be easily embedded into enterprise applications. For instance, vendors such as Switch Communications, Cisco with Spark, and Unify with Circuit connect workers via voice, video, and messaging capabilities are fixated on team collaboration through WebRTC.
The global web real-time communication market is segmented by component, WebRTC-enabled devices, industry vertical, and region.
By WebRTC-enabled devices, the global web real-time communication market is categorized into mobiles, desktops, tablets, and others. The mobile segment was the highest contributor to the market and is estimated to grow at a CAGR of 41.4% during the forecast period. The mobile devices segment accounted for the highest web real-time communication market share. Mobile devices can run WebRTC through browsers, hybrid, and native apps.
As per industry vertical, the global web real-time communication market is divided into banking, financial services, & insurance (BFSI); retail; telecom; public sector; media & entertainment; manufacturing; and others. The IT & telecom segment was the highest contributor to the market and is estimated to grow at a CAGR of 41.8% during the forecast period. The traditional IT & telecom industry is a saturated market with increasing supply and declining consumer demand. The Internet and app ecosystem have decreased the share of the traditional telecom market, with VoIP, IM, and social networks gaining significant customer adoption. WebRTC will gain significant opportunities in the IT & telecom sector by introducing novel technology in the market at an affordable cost. Various new vendors have entered the market to gain an outstanding market share in the established telecom industry. A few of them include Tokbox (Face-to-Face video, owned by Vonage and Nexmo), Plivo (APIs for Voice, VoIP, SMS, and text messages), & Modello (Telehealth). WebRTC developers are establishing strategic alliances with leading telecom industry vendors to revolutionize the business model that caters to the customers' changing needs. For instance, in April 2017, i-COMM, one of the leading WebRTC developers and Software-as-a-Service provider companies, launched a North American Partner Program for communication service providers and telecom consultants. These strategic alliances, partnership programs, business remodeling, product launches, and rise in demand for a secure, low-cost communication medium are anticipated to provide significant growth opportunities for the WebRTC market in the IT & telecom industry.
The BFSI segment is the second largest. With advancements in technology, the high adoption of smartphones, and increased internet penetration, customers can carry out their banking activities anytime and anywhere. However, this has been a crucial challenge for financial institutions to deliver excellent services and satisfactory customer experience at low costs and high profits. Therefore, WebRTC helps BFSI agencies overcome this challenge at low costs and high security. BFSI companies are using WebRTC to enhance the customer experience. Moreover, WebRTC offers the ability to connect via a browser rather than a dedicated office phone device, enables secure connection with the customers and agents on the smartphone apps, and other benefits. Furthermore, studies from TokBox demonstrate that 94% of millennials conduct their transactional banking online. Such a trend of online banking is again expected to create lucrative opportunities for this market in the BFSI sector.
Based on region, the global web real-time communication market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
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North America was the highest revenue contributor and is estimated to grow at a CAGR of 40.7%. North America offers adequate infrastructural development to adopt WebRTC technology. Leading WebRTC users such as Facebook, Twitter, Snapchat, and Google Hangouts originated from North America. In addition, leading vendors are focused on developing novel solutions, strategic alliances, and geographical expansion to strengthen their market presence and increase awareness regarding this new technology globally.
Furthermore, telecom companies are forming alliances with WebRTC developers to recapture the audience. For instance, in April 2017, i-COMM Connect, a WebRTC developer and software-as-a-service provider, announced the launch of the North America Partner Program for telecom consultants and communication service providers, which enables secure, instant communication within any website session. Further, in April 2017, Grandstream Networks, Inc. launched an innovative web conferencing platform-IPVideoTalk, a Web Meeting Service that leverages WebRTC technology to offer high-quality web meetings with HD video & audio through any Mac, iOS, or Android devices. Such positive initiatives and a strengthening foothold of the technology in the region are expected to drive the growth of the North America WebRTC market.
Europe is the second largest region. It is projected to reach USD 41 billion by 2030, registering a CAGR of 42.7%. The European web real-time communication market is growing at a substantial growth rate, owing to the rise in the adoption of WebRTC due to cost-effective solutions and growth in awareness regarding the benefits of WebRTC among the key market players. For instance, in 2015, European Computer Telecoms AG announced that the European incumbent operator offering mobile, fixed Internet, and digital television services started using INtellECT WebRTC solutions enabled by Dialogic PowerMedia media processing software to offer WebRTC-enhanced video and voice 0800 toll-free services. Furthermore, great internet penetration across the European region boosts market growth. For instance, according to Internet World Stats, Europe had 87.7% internet penetration. Moreover, an increase in the usage of WebRTC solutions in e-commerce companies is also expected to drive market growth in this region.
Asia-Pacific is the third largest region. Asia-Pacific is expected to witness the highest growth in the WebRTC market, owing to an increase in adoption of fast internet connectivity, including 4G connections, large population base, massively growing smartphone penetration, rise in competition among telecom service providers, increase in GDP, and surge in usage of social media among millennials. In addition, faster data connectivity on mobile and internet networks encourages enterprises to embed high-quality communication and collaboration features into the applications to attract more user bases for enhanced communication. Moreover, increases in IT expenditure and growth in population in countries such as India and China are anticipated to provide lucrative opportunities for market growth. Further, international players are focusing on their expansion in Asia-Pacific to cater to the untapped markets. For instance, in March 2019, CafeX Communications, a WebRTC developer, expanded its partnership with Communication Business Avenue (CBA), enabling it to extend its sales reach to Japan, South-East, and North Asia.