Video Conferencing Market – Global Industry Analysis and Forecast (2022-2029)

Video Conferencing Market was valued at USD 4.58 Billion in 2021, and it is expected to reach USD 9.06 Billion by 2029, exhibiting a CAGR of 8.9% during the forecast period (2022-2029)

Videotelephony is the two-way or multipoint receiving and transmission of audio and video signals by persons in various places for real-time communication. It is also known as video conferencing and video teleconferencing. A videophone is a telephone equipped with a video camera and video display that allows for visual and voice communication at the same time. In a videoconference, this technology is used for a group or organisational meeting rather than for individual meetings. Video conferencing is an internet tool that enables individuals in several areas to have face-to-face meetings without having to travel to a single venue. This technology is especially useful for business customers who move between cities or even nations since it saves time, money, and problems connected with business travel. Routine meetings, business negotiations, and job interviews are all possible with video conferencing.

During the 2020-21 COVID-19 pandemic, video conferencing systems such as Zoom, Skype, and Microsoft Teams witnessed an increase in interest and use, as lockdowns caused many people throughout the world to work from home and attend online classes. Financial advisers, therapists, tutors, and attorneys, for example, were able to meet with their clients and conduct one-on-one sessions via video conferencing. During the epidemic, certain judicial hearings and court cases were fully conducted by video conference. Doctors and other medical professionals have also embraced telemedicine to a far greater extent than they did prior to the epidemic.

Companies with numerous locations may set up direct video connections between them to help their staff to work more effectively. A video conference may also be used to hold regular meetings with firm employees or to inform shareholders about the latest business operations. It can be used to announce major changes at a firm, such as the appointment of a new CEO, or to provide information in an interactive style that allows all attendees to join in debate about what they see on screen.

Video conferencing may also be utilised for instruction, with the teacher instructing a remote class from practically anywhere. This may be done in a business setting, particularly to provide employees with the information they need to execute their tasks more effectively. Video conferencing may also be used in the academic realm to link a typical classroom environment with students who live a long distance away from the institution. Video conferencing services are occasionally provided by hotels and conference facilities to customers who demand them. This might be provided in suites or meeting rooms that have been specially prepared for this purpose.
Research Methodology
The research report highly depends on both primary and secondary data sources. The research process involves the investigation of various factors affecting the industry, such as government policy, market environment, competitive landscape, historical data, current market trends, technological innovation, upcoming technologies, and technical progress in related industries, as well as market risks, opportunities, market barriers, and challenges. All conceivable elements influencing the markets included in this research study have been considered, examined in depth, validated through primary research, and evaluated to provide the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalised, and the impact of inflation, economic downturns, regulatory & policy changes, and other variables is factored into the market forecast.

This data is combined and added with detailed inputs and analysis, and presented in the report. Extensive primary research was conducted to acquire information and verify and confirm the crucial numbers arrived at after comprehensive market engineering and calculations for market statistics; market size estimations; market forecasts; market breakdown; and data triangulation. Bottom-up technique is widely employed in the whole market engineering process, along with multiple data triangulation methodologies, to perform market estimation and forecasting for the overall market segments and sub-segments covered in this research.



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Video Conferencing Market Dynamics
Adoption of Video Banking: The increasing popularity of online and mobile banking among clients is expected to fuel the expansion of video conferencing market trends. Customers that use video banking alternatives may save time and money. Furthermore, video banking allows end users to securely interact with distant clients and coworkers, improving operational efficiency. As a result, loan officers, customer service representatives, financial counsellors, and others in the banking and finance business are increasingly utilising visual communication solutions. To fulfil the rising demand for video financial services in the banking and financial sectors, One Touch Video Banking teamed with NuSource Financial in May 2021 to enable credit unions and banks to strengthen their ties via the use of next video banking technology.

Increasing Preference for Remote and eLearning: Institutions, schools, colleges, and K-12 have implemented conferencing technologies to replace traditional classrooms with online learning. As a result of the epidemic, more educational institutions are working with video communication providers to expand remote learning. As a result, educational institutions are integrating software to give students with an efficient learning experience. Additionally, applications such as Adobe, Microsoft Office, and others make it possible for customers to access online classes from their personal smart devices. It also enables administrators to share displays, documents, and files with their students while instructing. Furthermore, such activities will propel the global video communication industry's expansion in the video conferencing market.

Transformed global workforce: The whole workforce has undergone a shift toward remote working with COVID-19, opening the way for video conferencing and hardware devices. Post-pandemic, applications such as Microsoft Teams, an in-built application of Office 365 that is already used by most organisations for end-to-end productivity with email and storage capabilities, enjoyed tremendous growth. Zoom meetings are also growing in popularity due to its practicality and convenience of use. Furthermore, businesses like as Huawei, Cisco, and Poly are releasing gear that is compatible with improved video conferencing, enhancing the overall development of the video conferencing industry.



5G paving the way for video conferencing: 5G networks give an upgraded internet experience with speeds of up to 1 GBPS and latency of 10ms, as well as a platform for cloud and AI-based video applications. Various data-intensive applications, both individual and B2B, such as AR, VR, and video apps, are emerging. IT and telecom, retail, healthcare, automotive, media and entertainment, BFSI, and agricultural all have varied video conferencing needs, such as high bandwidth, low power, ultra-low latency, and high speed. To meet the growing demand for video conferencing, network capacity must be raised by utilising additional spectrum, which would result in the widespread acceptance of the 5G core to deploy 5G technology for better mobile broadband services, hence boosting the growth of video conferencing market.

Internet bandwidth and technical glitch issues: Employee productivity is severely hampered by a lack of effective communication tools. Employees' time may be wasted if there is background noise or if the video is of poor quality. Poor video streaming quality and disruptions during video conferencing can greatly hinder efficient communication among workers, particularly in the COVID-19 circumstance. Many individuals are irritated by the poor visual quality and other disruptions that occur during video conferencing.

Issues of privacy and security: The security and privacy of video footage transmitted across numerous platforms can cause considerable worries for businesses, stifling the overall growth of the video conferencing market. Furthermore, corporations are concerned about copyright and Digital Rights Management (DRM) owing to the risk of exploitation, information leakage, and data breaches. In 2019, the healthcare, banking, manufacturing, information, and public sectors saw the biggest number of data breaches. To address such constraints, businesses must rethink their video conferencing strategy before using these technologies. Video conferencing may experience slow adoption in the absence of policies and processes for appropriate video content management. Furthermore, providers must provide interoperable and simple-to-use enterprise-grade video communication solutions with built-in security measures.


Video Conferencing Market Segment Analysis
Based on component, the hardware segment held the largest share of 47% in 2021. Laptops, cell phones, and desktop computers with high-resolution cameras, microphones, and speakers are adding to the growth. As a result of certain companies embracing the work-from-home paradigm in 2020, demand for and expenditures in enterprise-based hardware have declined. As a result of this trend, businesses are investing more in individual goods rather than company hardware. Cameras and microphones/headphones are hardware sub-segments. The microphones/headphones category experienced a jump in growth in 2020, owing to the need for effective communication and the acceptance of the work-from-home paradigm. The quick adoption of software-based communications and collaboration options like Zoom video conferencing and Microsoft Teams during the epidemic has accelerated the headphones segment's growth. Recent breakthroughs in the fields of IoT and augmented reality have resulted in the creation of headgear with expanded functionality, such as improved device inter connectivity.

Based on deployment, the on-premise segment held the largest share of 47% in 2021. This is due to the increasing popularity of on-premise deployment by major enterprises in response to growing worries about data theft and effective information security system maintenance. However, due to the rising popularity of cloud-based solutions, the category is likely to increase modestly during the forecast period. Businesses have begun to migrate their revenue generating methods to the cloud as a result of this trend. Avaya, Inc., for example, altered its revenue generation strategy from on-premise to cloud-based. The cloud segment is likely to develop rapidly in the next years. These solutions help end users since they enable convenient access to video conferencing services via various channels, such as laptops and mobile devices. In addition, service providers are stressing the use of a Software as a Service (SaaS) platform for video conferencing, which has attracted a huge number of small and medium-sized businesses. Furthermore, the segment's growth is likely to be fueled by the development of better encrypted and password-protected cloud solutions.

Based on enterprise size, the large enterprises segment held the largest share of 77% in 2021. Large corporations are the most frequent customers of video conferencing services since they want trustworthy and secure solutions. Large organisations prioritise corporate network performance while also incorporating cutting-edge technology such as SD-WAN. To meet the demands of multi-regional and international corporations, service providers are focusing on updating video conferencing systems with enhanced capabilities such as business process integration and centralised provisioning and service management. Small and Medium Enterprises (SMEs) are expected to create attractive opportunities for big players in the coming years. Because of the COVID-19 pandemic, SMEs are realising the need of collaboration and conferencing. To obtain a competitive advantage, several important market competitors are implementing strategies for this category. Plantronics, Inc., for example, updated the QDX 6000, an SD video conferencing system appropriate for small and medium-sized meeting rooms, for the Asian market.

Based on the application, the enterprise segment held the largest share of 84% in 2021. Room-based hardware solutions include conference video endpoints that are installed, deployed, and configured in meeting rooms and boardrooms. Because the codec interfaces with other endpoints and sends visual signals and data, these are all-in-one systems that do not require any extra hardware or software. Prior to the COVID-19 outbreak, enterprise-based video conferencing systems were predicted to develop fast due to increasing employee adoption of conferencing as a way of communication and collaboration.

Based on end-user, the corporate segment held the largest share of 28% in 2021. The company's emergence might be attributed to the fast expansion of the cloud-based communication and collaboration software sector, which has opened up the market for new entrants. Cloud-based platforms for seamless data sharing, collaboration, and communication are becoming increasingly popular as the number of remote or geographically dispersed teams grows. Team communication and collaboration software may help remote teams streamline business processes, manage projects of all sizes, and boost overall productivity. Another potential market, government and defence, is expected to witness increased utilisation in the next years. During the COVID-19 pandemic, public-sector enterprises are using conferencing technology to increase efficiency and productivity. These tools help government agencies engage more people and make faster choices. Furthermore, the industry's rising need for video conferencing as a result of scattered governments is moving the sector ahead.
Video Conferencing Market Regional Insights
In 2021, North America dominated the video conferencing industry, with a revenue share of more than 38.12%. North America is likely to be one of the early adopters of 5G technology, which will improve the region's use of video conferencing solutions. During the forecast period, it is predicted to be the world's largest video conferencing market. As most significant firms are located in this region, it is also one of the early users of video conferencing. The United States and Canada are likely to contribute significantly to the North American video conferencing industry. Large-scale investments by enterprises in video conferencing outsourcing are the primary growth drivers in North America. The region's education industry is a big fan of video conferencing and webcasting. However, interoperability concerns, complexity issues in video content and technology, and high prices of video conferencing equipment are impeding market expansion in this area.

Upgrades to current equipment and cloud-based service subscriptions, on the other hand, provide a growth potential in the region. Hardware suppliers play an important function in supporting the expansion of the video conferencing industry by creating and offering clients with dependable technological goods. Software developers, on the other hand, are always focused on upgrading current software with unique features, which attracts a large number of end-users. Increased demand for continuous access to high-quality internet and visual meetings is expected to assist regional prosperity. The presence of several significant firms, as well as the increasing popularity of Bring Your Own Device (BYOD) solutions, which has resulted in the widespread usage of cameras and headphones, are expected to drive market expansion even further. Furthermore, as cloud technology advances, video conferencing market players in this sector are witnessing an increase in demand for their cloud-enabled products.
Report Scope:
The Video Conferencing Market research report includes product categorization, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, and the most recent dynamic analysis, among other things. The study discusses the global market's drivers, opportunities, and limitations. It discusses the influence of various drivers, trends, and constraints on market demand during the forecast period. The research also outlines market potential on a global scale. The research includes the production time, base distribution, technical characteristics, research and development trends, technology sources, and raw material sources of significant Video Conferencing Market firms in terms of production bases and technologies. The more precise research also contains the key application areas of market and consumption, significant regions and consumption, major producers, distributors, raw material suppliers, equipment providers, and their contact information, as well as an analysis of the industry chain relationship. This report's study also contains product specifications, manufacturing processes, cost structure, and data information organised by area, technology, and application.
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Global Video Conferencing Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 4.58 Bn.


Forecast Period 2022 to 2029 CAGR:
11.3%
Market Size in 2029:
US $ 9.06 Bn.


 Segments Covered:
by Component
• Hardware
• Software
• Service


by Deployment Mode
• On-premise
• Cloud


by Enterprise Size
• Large Enterprises
• Small & medium enterprises


by Application
• Consumer
• Enterprise


by End-Use
• Corporate
• Education
• Healthcare
• Others



Video Conferencing Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Video Conferencing Market Key Players
• Cisco Systems
• Verizon Communications
• Polycom Inc.
• Alphabet Inc.
• Adobe Systems
• Microsoft Corporation
• Vidyo Inc.
• Zoom Video Communication
• Logitech International S.A.
• Panasonic Corporation
• ZTE Corporation
• Fuze Inc.
• Huawei Technologies Co.
• Avaya Inc.
• Facebook, Inc.
• Lifesize Inc.
• StarLeaf
• Google
• AWS
• LogMeIn
• Enghouse Systems
• Pexip
• Sonic Foundry
• Kaltura

Frequently Asked Questions:

1. Which region has the largest share in Global Video Conferencing Market?
Ans: North America region holds the highest share in 2021.

2. What is the growth rate of Global Video Conferencing Market?
Ans: The Global Video Conferencing Market is growing at a CAGR of 11.3 % during forecasting period 2022-2029.

3. What segments are covered in Global Video Conferencing market?
Ans: Global Video Conferencing Market is segmented into component, deployment, enterprise size, application, end-user and region.

4. Who are the key players in Global Video Conferencing market?
Ans: The important key players in the Global Video Conferencing Market are – Cisco Systems, Verizon Communications, Polycom Inc., Alphabet Inc., Adobe Systems, Microsoft Corporation, Vidyo Inc., Zoom Video Communication, Logitech International S.A., Panasonic Corporation, ZTE Corporation, Fuze Inc., Huawei Technologies Co., Avaya Inc., Facebook, Inc., and Lifesize Inc.

5. What is the study period of this market?
Ans: The Global Video Conferencing Market is studied from 2021 to 2029.