Growing demand for high-speed video communication products and rising work-from-home culture across the globe are driving market revenue growth
Market Size – USD 7.67 Billion in 2020, Market Growth – at a CAGR of 19.5%, Market Trend – Advancements in technology
The global video conferencing market size is expected to reach USD 32.02 Billion in 2028 and register a revenue CAGR of 19.5% over the forecast period, according to the latest report by Reports and Data. Adoption of remote working policies by organizations across the world due to the COVID-19 pandemic is a key factor driving market revenue growth.
The worldwide video conferencing sector grew rapidly during the coronavirus outbreak, as businesses and government agencies started regarding video conferencing as the ultimate option for connecting with remote workers, consumers, and employees. The increasing focus of companies on business expansion in the global market and management of workforce in various subsidiaries is driving market revenue growth.
Many companies throughout the world are encouraging their workers to work from home or remotely, resulting in surging demand for video conferencing software and services. Furthermore, to continue with online learning and seminars, the dependence of employees and other professional workers on video conferencing tools is increasing significantly.
Video conferencing technology provides a better social interaction platform as compared to conventional voice calls, as it offers features such as eye-to-eye contact. Demand for video conferencing is growing with the increasing globalization of businesses worldwide, to put in place a flexible, cost-effective system and scalable communication network that can facilitate better communication, team collaboration, and decision-making capabilities.
Some Key Highlights from the Report
- In September 2020, Vu released an audio-video solution called Meeting by Vu for virtual meetings using video conferencing software such as Zoom, Microsoft Teams, Cisco Webex, Google Meet, and any other video conferencing software that runs on Windows 10. The product line-up combines intelligent displays with built-in Windows 10 PC, professional-grade cameras with advanced video processing DSPs, and a sophisticated microphone and speaker system.
- Services segment revenue is expected to grow at a rapid rate during the forecast period. This growth is attributed to increasing demand for services for employee training, project consulting, and deployment of the latest solutions. Enterprises can purchase a video conferencing service from a company, and use it the way they want and from any device with an internet connection.
- Small and medium enterprise (SMEs) segment revenue is expected to grow at a rapid rate during the forecast period, as these firms have limited marketing budgets and lack advanced resources and capabilities. These businesses, therefore, attempt to scale up their operations using cost-effective methodologies to maximize return on their investment.
- On-premises segment revenue is expected to grow at a significantly high rate during the forecast period. On-premises implementation is preferable since it is easier to use, and it also provides more security. Healthcare businesses, as well as those in the banking, military, and finance industry, have considerable security concerns, as they need to comply with strict regulations and data protection, and so cannot put their trust in third-party data centers.
- Legal segment accounted for a significantly large revenue share in 2020. Remote communication solutions are used by legal professionals to engage with others outside the sector, such as partners in other fields or clients. Additionally, they help to transfer multimedia content across video conferencing platforms while allowing legal professionals to demonstrate concepts and codes in real-time with the help of screen sharing.
- The market in Asia-Pacific is expected to register a high revenue growth rate during the forecast period. Increasing demand for advanced technologies and a growing number of service-based start-ups in developing countries, such as India and China, are expected to drive regional market expansion. There are many key companies in this region, which are offering a wide range of improved and advanced video conferencing solutions. Increasing investment in advanced technologies by companies in this region to improve their business efficiency is driving the growth of the market.
- Companies profiled in the global market report include Cisco Systems, Inc., Microsoft Corporation, Lifesize, Adobe Inc, Skype, ZTE Corporation, Zoom Video Communications, Inc., Plantronics, Inc., Vidyo, Inc, and LogMeIn, Inc.
For this report, Reports and Data have segmented the global video conferencing market based on component, deployment type, organization size, end-use, and region:
- Component Outlook (Revenue, USD Billion; 2018–2028)
- Professional Services
- System Integration and deployment
- Technical Support
- Managed Services
- Professional Services
- Deployment Type Outlook (Revenue, USD Billion; 2018–2028)
- Organization Size Outlook (Revenue, USD Billion; 2018–2028)
- Large Enterprises
- Small and Medium-Sized Enterprises
- End-Use Outlook (Revenue, USD Billion; 2018–2028)
- Telecom and IT
- Retail and Consumer Goods
- Government and Public Sector
- Energy and Utilities
- Regional Outlook (Revenue, USD Billion; 2018–2028)
- North America
- Rest of Europe
- South Korea
- Rest of APAC
- Latin America
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of MEA
- North America
Conclusively, all aspects of the Video Conferencing Market are quantitatively as well qualitatively assessed to study the global as well as regional market comparatively. This market study presents critical information and factual data about the market providing an overall statistical study of this market based on market drivers, limitations, and prospects.