Video Conferencing Market: Introduction
Video conferencing refers to conducting a conference using telecommunication technologies to enable real-time two-way transmission of audio and video. Increasing globalization is encouraging most organizations to shift to conference meetings to enable faster decisions and reduce traveling hassles. In the corporate enterprise sector, video conferencing is predominantly used to enable effective real-time communication over long distances at minimal cost and time, and enhance productivity between teams based in different locations worldwide. Additionally, it saves travel expenses and addresses customer queries. The global video conferencing market is anticipated to expand at a CAGR of ~9% during the forecast period, and was valued at approximately ~US$ 6 Bn in 2019.
Key Drivers of Video Conferencing Market
The video conferencing market is witnessing noticeable growth, owing to the rising adoption of cloud-based video conferencing solutions globally. Increasing prominence of cloud-based video conferencing services has led to the implementation of better encryption and password protection solutions for cloud-based video conferencing systems across the world. Furthermore, growing use of cloud-based solutions and emergence of the 3D technology in video conferencing solutions is also a major factor, which is accelerating demand for this solution globally. According to a report by American Telemedicine Association, more than 200 academic medical centers in the U.S. already offer video-based consulting to clients in other parts of the world.
Video conferencing is a major technology tool used by enterprises to enhance collaboration. Additionally, organizations across the world are increasingly focusing on curtailing costs related to their means of communication in order to extend their reach globally. This has created immense opportunities for the video conferencing market, thereby leading to development of advanced conferencing solutions and services. Furthermore, the rising need to reduce operating costs has led to a recent shift from traditional immersive telepresence systems to software solutions in the video conferencing market. Enterprises across the world seek to deploy cheaper and scalable cloud-based video conferencing solutions to lower the total cost of ownership (TCO).
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Managing business in the global context and increasing adoption of video conferencing solutions by small and medium enterprises (SMEs) are the key factors driving the growth of the video conferencing market globally. Cloud-based video conferencing services offer higher availability and accessibility to end-users, as the infrastructure is managed and maintained at the service provider’s site. Moreover, the rising trend of a mobile workforce and Bring Your Own Device (BYOD) has led to widespread adoption of cloud-based video conferencing services. At present, on-premise holds major market revenue share, whereas cloud based video conferencing is expected to see higher CAGR during the forecast period. Verticals such as healthcare and government & defense are expected to register strong growth in the coming years due to digitization in governance and increasing impact of COVID-19 on different industries.
Key Players in Video Conferencing Market
The global video conferencing market comprises of large as well as mid-sized video conferencing system manufacturers and suppliers. Companies such as Cisco Systems, Inc., Polycom Inc. and Huawei Technologies Co., Ltd., have been able to establish a strong presence in various countries across the world. Vendors present in the video conferencing market are currently focusing on introducing advanced software and integrating new capabilities within the software to enable video conferencing across company boundaries, and meet the need to manage video delivery and quality. Moreover, video conferencing solution providers are aggressively developing innovative products that match customers’ expectations for enhanced features and integrated capability over connected devices. Currently, the market is growing and leading players are continuously focusing on acquisition of local players in order to broaden their geographical reach.
