Video conferencing software allows visual communication sessions between two or more users, featuring real-time audio and video content transmission. It has replaced calls, fax, and physical meetings, a prime example of the adoption of advanced technology in numerous sectors. In addition, the budding integration of the Internet of Things (IoT), Artificial Intelligence (AI), and cloud technology worldwide push the demand for Video conferencing software.
Rapid globalization and the growing need for workforce management from a remote location contribute to the industry's growth with the augmenting demand for video communication, virtual workforce management, and cloud-based collaboration platform, among others. In view of this, a recent research study has revealed that the Global Video Conferencing Market is set to record a 9.5% CAGR from 2023 to 28.
Along similar lines, numerous corporations tend to look for collaborations in a bid to downsize the high costs associated with traveling while speeding up decision-making. With the trend of work-from-home continuing even with the reduction in lockdowns and covid-19 situation, video conferencing has witnessed a swift surge. Furthermore, the demands for video conferencing solutions from numerous institutes for meetings, seminars, and classes are likely to propel the industry's overall growth.
How Is North America Generating Opportunities for The Industry?
The Global Video Conference industry has flourished exponentially within the historical period as a result of growing work-from-home opportunities and is expected to thrive further in the coming years. North America indeed leads the market globally, and its credit goes to the unavoidable presence of tech giants accompanying a massive workforce. Moreover, being one of the most technically advanced regions across the globe, the countries here are heavily leaning towards video conferencing solutions.
The trend of working from home has gained significant traction in the region, with both companies and employees benefiting from it. The employees save money commuting by working from the comfort of remote locations. In contrast, corporations save money on rent, utilities, cleaning services, and food and benefit from a broader spectrum of recruitment and higher staff retention. These factors, when taken into account by the region's colossal corporations and advancements in tech, have allowed them to benefit the most from it, resulting in higher adoption of video conferencing.
Additionally, many different sectors, other than businesses and such, heavily use video conferencing, including healthcare, government, and defense, education. These sectors, coming from the region which is leading technologically, all the respective sectors practices have mostly adopted the advanced technology or a mix of it with the old traditional ways. Thus, video conferencing is impaled into the lifestyle of the consumers in the region. Furthermore, the practices of hybrid workspace and education for those industries or sectors that are unable to go full remote is also likely to bode well for the video conferencing market.
Some Significant Developments Shaping the Industry
There is hardly any sector in which video conferencing won’t benefit. Eliminating the distance and commute costs allows people from a broader distance to meet, discuss and share their knowledge while working together. In addition, major market expansion of various corporations and industries has been possible, thanks to video conferencing. These aspects have driven the growth of the video conferencing market and are likely to keep it afloat.
The primary issue related to video conferencing hardware, such as poor camera, microphone, and display unit quality, is being addressed by market participants in recent years, such as Cisco and Huawei offering hardware solutions. In fact, with the advent of collaborative whiteboards for smart offices, telepresence systems, end-point solutions, ultra 4K UHD cameras, and premium microphones, the industry is about to enthrall in the coming years. Thus, the focus of the market players towards resolving issues at the earliest, owing to the growing consumers' indulgence in video conferencing, is likely to bode well for the video conferencing market.