Video Conferencing Market is forecast to reach $6.65 billion by 2025, after growing at a CAGR of 8.50% during 2020-2025. Video Conferencing is considered as visual communication session between two or more users irrespective of their location, featuring video and audio content transmission in real-time. Integration of video conferencing or online meeting tools with advanced technologies such as the Internet of Things (IoT) and Artificial Intelligence (AI) is set to drive the video conferencing industry. Growing adoption of video conferencing solutions in corporate sector and other end-user verticals such as education, healthcare, and the government will further enhance the overall demand for Video Conferencing market size during the forecast period 2020-2025.
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Deployment – Segment Analysis
In the Deployment Type, the cloud-based deployment segment is expected to hold a larger market size than the On-Premise deployment. Cloud-based solutions offer increased convenience to end-users by enabling easy access to the video conferencing platform through multiple channels, such as laptops, tablets, and mobiles. Emerging trends such as Bring Your Own Device (BYOD) and mobile workforce have resulted in extensive adoption of cloud-based services. Increasing popularity and adoption of cloud-based solutions have resulted in the development of better encrypted and password-protected solutions. Furthermore, the increase in usage of cloud-based solutions and incorporation of virtual reality (VR) in video conferencing techniques are further driving the video conferencing solutions. Alongside this, the benefits associated with cloud models such as cost-effectiveness, scalability, and flexibility also augment the demand for cloud-based deployment.
End-Use Industry – Segment Analysis
In End Use Industry vertical, corporate sector leads the Video conferencing market as it is an effective communication tool and assists in reducing travel and operational costs for small and large-scale enterprises. In corporations, this technology is mainly used for cost-effective, real-time, and long-distance communication and for augmenting the productivity of various teams based in multiple locations. As the approach of corporate business owners with respect to modern communication systems and their implementation at the workplace changes, the deployment of video conferencing solutions for video meetings, group webinars, and enterprise-level discussions in the corporate spectrum is bound to become commonplace which will fuel the market growth.
Geography – Segment Analysis
North America dominated the Video Conferencing market with a share of around 35.49%, followed by Europe and APAC owing to increasing adoption of video conferencing systems for upgradation or replacement of systems and early adoption of advanced technologies such as IoT and AI. In 2019, StarLeaf, a leading provider of video conferencing services which is headquartered at U.K. had strengthened its presence in the U.S. with the unveiling of offices in New York City and Chicago to serve as strategic centers of support for enterprise customers. It has resulted in rapid growth in adoption of cloud-based video conferencing and increased the company’s footprint at U.S. covering organization across a wide range of sectors, thereby pushing the video conferencing market growth in North America.
Drivers – Video Conferencing Market
In recent years, in some of the developed countries, video-enabled communication has become a critical component of the productivity strategy for most of the organizations. Advancements in AI improve the user experience and drive incremental efficiencies by assisting automate time-consuming collaboration tasks. Natural language processing (NLP) one of the AI technology can be used to improve video conferencing from enabling the automated transcription of the meeting, sharing actions and notes, and translating the conversation into different languages. NLP combined with AI can also enable virtual assistants and chatbots to start, join, and leave meetings through voice command. It also enables better audio quality by automatically suppressing echo and minimizing background noise. The integration of industries with IoT technology will also drive the demand for the video conferencing market. For instance, in 2017, video conferencing startup Owl Labs had raised $6 million funding by Matrix Partners. Growing funding of video conferencing startups and the innovations being brought to light are set to propel the market growth.
The development of 4G and 5G at affordable prices has brought video conferencing to the forefront of remote working. In 2019, Ericcson and Qualcomm Incorporated had completed the first-ever live 5G video conference in India using 28 GHz spectrum. With the adoption of 5G technology, there has been an increase in network speed and bandwidth that support in high quality of video conferences. This has helped in better video conferencing quality even in remote locations, thereby driving the video conferencing market in the near future.
Challenges – Video Conferencing Market
Technical issues associated with smooth transmissions that could result from software, hardware, low bandwidth or network connectivity create difficulties in video conferencing that hampers the growth of the market. Setting up video conferencing in the corporate sector can be a bit expensive for small-sized businesses or enterprises. Advanced features and capabilities have been increasing the cost and the need for training have been restraining the video conferencing market growth.
Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Video Conferencing market. In 2019, the market of Video Conferencing has been consolidated by the top five players – Adobe Systems Inc, Plantronics, Inc, Avaya Inc, Cisco Systems Inc, Microsoft Corporation and among others.
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