Video conferencing is an online meeting that connects two or more people in a live audio-visual call. With the robust internet connection, the participants can hear, see, and talk to each other in real-time, no matter anywhere in the world they are. It brings people working from different places together in a virtual meeting room. It is a highly efficient and acceptable technology that allows users in various locations to hold face-to-face meetings. There are many ways to employ video conferencing technology, such as company meetings, seminars, job training sessions, or addressing board members with built-in features such as chat, screen sharing, and recording. Video conferencing has come a long way. It has become more accessible and affordable, and sometimes free as it is the most powerful communication and collaboration tool.
The global video conferencing market size was valued at USD 8.2 million in 2019 and projected to reach USD 22.4 million by 2027, growing at a CAGR of 19.6% during the forecast period, 2020-2027. The major factors are the rising adoption by the corporate enterprises and government authorities to connect with remote customers, employees, and workforces and prevent direct contact. Additionally, the government authorities are using video conferencing services to communicate with healthcare professionals and administrative bodies of other countries to spur the global video conferencing industry in the future periods. Furthermore, the growing demand for unified communication and the increasing trend of online learning and work from home globally are expected to witness remarkable video conferencing. The gamification in video meetings is a leading trend gaining popularity; rising globalization of businesses and robust urbanization are expected to propel the demand for video conferencing over the coming years.
Moreover, the launch of the 5G technology and the upsurge in demand for video conferencing due to the faster networks, more reliable connections, and higher frequency radio bands positively impact the market for video conferencing. Furthermore, the increased command of high-speed data connectivity among consumers and the increasing need to reduce communication costs among organizations fuel the demand for the video conferencing market. The growing trend for cloud applications and increased digitization in the government sector will bolster the global video conferencing market share growth. Additionally, the ever-increasing government plans for improving internet access and rising adoption of online video consultation solutions in the healthcare industry propelling the growth of the video conferencing market across the globe.
Due to the advancements in communication technology, businesses are now performing virtual meetings with clients and employees via video conferencing, video collaboration, and real-time video communication across the globe. Cloud-integrated networking technologies make scope for enterprise worldwide to come together and discuss business opportunities. Video conferencing software creates a more collaborative meeting culture in the organization and empowers today’s digital workforce. Video meetings help teams maintain human connections, irrespective of physical location, which improves collaboration globally and speeds up decision-making. Thus, the rapidly increasing globalization of business organizations is expected to enhance the adoption of video conferencing endpoints and infrastructure across large-, medium-, and small-sized businesses. For instance, in January 2020, Lifesize, Inc. collaborated with Tech Data to share video conferencing services and meeting room systems to a broader portion of Australia and New Zealand more effectively. This new partnership will extend unified communication solutions and video collaboration portfolios to businesses of various sizes in this region.
Recently, the outbreak of COVID-19 has vigorously affected every segment of developed and developing countries globally. COVID-19 cases are increasing day by day, as several infected patients have been on the rise. Enterprises have been closed due to country-level lockdown across the globe. This would have a substantial impact on the global economy in terms of the decline in GDP. In line with individuals, COVID-19 has a massive impact on large enterprises and SMEs. It leads to the cancellation of different corporate events such as conferences, seminars, team-building events, etc. As a result, corporate organizations have adopted the work from home concept. The entire workforce has experienced a transition toward remote working, paving the way for video conferencing solutions and hardware products. Applications such as Microsoft Teams and Zoom meeting solution is experiencing growth due to their ease of usage and feasibility. Moreover, companies such as Cisco, Huawei, and Poly are rolling out hardware compatible for better video conferencing solutions. However, the privacy and security of the video content shared across multiple platforms can pose significant concerns for enterprises and restrain the market’s growth.
The global video conferencing market is segregated into hardware, solution, and services based on the component. The hardware segment is estimated to the highest growth over the analysis timeframe. The rise of the Internet of Things allows robust integration of hardware with cloud-based software solutions and the growing emphasis of camera manufacturers on the development of video conferencing cameras with features such as artificial intelligence and facial recognition.
The services will grow significantly due to increased demand for services by the end-users related to employee training, consulting, and new solutions. Small-scale and medium-scale businesses utilize these services to rapidly expand their geographic operations by building a centralized communication platform that uses advanced technologies, such as 4G and VoIP.
Based on the deployment model, the global video conferencing market is classified into on-premises and cloud. The on-premises segment is to be the highest revenue share for video conferencing during the forecast period. The segment’s growth is attributed to the high adoption of on-premise in large and small enterprises. It keeps critical data in-house; no third party has access to information, and enterprises do not need to rely on an internet connection to access data. In addition, on-premise applications are secure, reliable and allow enterprises to maintain a level of control that the cloud often cannot. Besides, the increasing dependency on the cloud has increased the threats from cyber attacks. Thus, companies are using on-premises, intending to utilize the benefits of highly secured on-premises solutions.
The cloud will witness a lucrative growth rate in the estimated period due to the emergence of cloud-based solutions with lesser costs than on-premise software.
Based on the end-user, the global video conferencing market is segmented into corporate, education, healthcare, government and defense, banking, financial service and insurance, media and entertainment, and others. The corporate segment will dominate the global video conferencing market by 2027. Due to the rise in adoption of video conferencing technology, incorporate companies for long-distance communication, cost-effectiveness, and real-time, and for expanding the productivity of various teams based in multiple locations. In addition, the video conferencing system acts as an efficient communication tool. It helps to reduce travel and operational costs for large and small-scale companies and bind all employees through a single software.
Healthcare accounted for the share of the video conferencing market in 2019 on account of the growing acceptance of telemedicine services in developed economies, the rising need for immediate medical assistance to patients located in remote locations, and the growing focus of various healthcare organizations on the provision of medical training to its employees using these solutions. In addition, MDLIVE, Lemonaid, LiveHealth, PlushCare, Amwell, etc., are the telemedicine applications that allow doctors to interact with patients via online video or video conferencing.
The global video conferencing market is segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa by geography. North America is to project considerable growth over 2020-2026. Due to the presence of well-established business infrastructure, increased demand for visual meetings & continuous access to high-quality internet, and ongoing technological advancements.
The Asia Pacific will capture a share of the video conferencing market by 2027. Due to the growing adoption of the remote working approach, rise in internet infrastructure development initiatives, and increased digitization in the government sector.
Companies such as Adobe Systems Inc, Cisco Systems Inc., Google Inc., Huawei Technologies Co. Ltd., Microsoft Corporation, Zoom, AWS, Avaya Inc., BlueJeans Network, HighFive, Logitech, Kollective Technology, StarLeaf, Lifesize, Kaltura, Polycom Inc., LogMeIn, Enghouse Systems, Pexip, Qumu, Sonic Foundry, Barco, Haivision, Fuze, and Premium Global Services are the key players in the global video conferencing market.
By Deployment Mode