Surging business globalization, workforce management from a remote location coupled with the benefit of elimination of traveling expenses, reducing operational cost, and time savings are some of the key factors which are resulted in the demand for video conferencing solutions. The COVID-19 pandemic has impacted the market which in turn resulted in the rapid adoption of video conferencing technology by the educational institutions, small-medium and large enterprise, government & defense, etc., for the smooth business operations from the remote location owing to the complete shut down and curfew in the countries.
Furthermore, the increasing adoption of video conferencing technology by the small-medium organization with the purpose of meetings, workshops and seminars and are contributing to the demand for video conferring. Also, the escalation in the adoption of video conferencing technologies in education, defense & government and healthcare sector for real-time contact and transmission of two-day audio-video would further augment the market growth during 2020-25.
According to MarkNtel Advisors’ research report “Global Video Conferencing Market Analysis, 2020”, the market size of video conferencing industry across the globe is forecast to grow at a CAGR of around 9.50% during 2020-25. The major key factors contributing to the growth of the market are geographically scattered business operations, improved productivity by quick decision with the help of two-way communication technology coupled with the time & expense savings on traveling. Moreover, emerging trends such as digital classrooms, smart factories, etc. also some of the contributing factors to the growth of the video conferencing market.
Also, the technological advancement and abundance of video conferencing solution providers in the countries such as U.S, China, India, Japan, UK, France coupled with the government’s initiative such as “Made in China 2025”, “Make in India” vision are adding pace to the market growth of video conferencing. For instance, in 2020, the government of India announced to sponsor the made in India video conferencing tools which would help in the surge of the market of video conferencing.
North America to Grab Lion’s Share
In 2019, North America grabbed the major market share in the global video conferencing market. The market size of North America is promulgating on account of the presence of numerous solution providers in the U.S and Canada. Moreover, the well-established industries and their technological advancements are propelling the demand for video conferencing solutions. Furthermore, the internet penetration coupled with the high-speed network and the surging trend of work from a remote location, that is one of the key contributing factors for the deployment of video conferencing solutions for the meetings and conferences. However, APAC is expected to emerge the fastest emerging region during the forecast period owing to the changing business operations and emphasis on work from home by the organization due to the benefits such as low operational cost and increased productivity would be contributing to the increasing market share of APAC.
Hardware Segment to Continue to Outperform Other Key Components
In 2019, the hardware segment grabbed the major market share and the same trend is expected in the forecast period too. The technological advancement in cameras and microphones are gaining end-users’ traction due to which the demand for latest technology-enabled hardware are emerging and contributing to the growing market share of the segment. For instance, as artificial intelligence and facial recognition technology-enabled video conferencing camera “CAM-540” was launched by “Aver Information Inc.”, in 2019.
Moreover, the increasing usage of microphones in activities such as coaching classes, sports, etc. are contributing to the increasing share of the hardware segment. However, the demand for services such as consulting, training, maintenance and deployment of new solutions due to a rapid increase in the adoption in the developing nations would contribute to the surge in market share.
The large enterprises being the early adopter of any technology grabbed the major market share in 2019. The geographical expansion of business operations of large enterprises generated the need for video conferencing solutions for workforce management. Moreover, the companies are doing tie-ups with large enterprises for the solutions which are helping in the market growth. For instance, in 2016 Tech Mahindra partnered with Cisco systems for 7 years to manage the organization’s video conferencing systems.
Furthermore, the cloud-based deployment captured the major market share owing to the increasing adoption in the small-medium enterprises in the developing nations. As per the National Association of Software and Services Company, In India, around 60% of the small-medium enterprise has adopted the cloud-based solutions as of 2019, which is expected to increase more than 75% till 2027.
In 2019, the corporate segment dominated the market and the same trend is expected in the forecast period of 2020-25 too. The surging number of corporates across the glove and the expansion of business operations resulting in the need for video conferencing solutions. Furthermore, the solutions which are being provided by the players in the industry especially for the corporates are gaining great adoption which is resulting in market growth. For instance, the “ezTalks Meeting” was launched by the company “ezTalks” in 2019. The company launched this service with a feature of whiteboard and screen sharing to communicate through drawing. However, the healthcare segment is one of the fastest segments for the adoption of video conferencing owing to the soaring need for medical assistance to patients from the remote location, as revealed by MarkNtel Advisors’ research report “Global Video Conferencing Market Analysis, 2020”.
According to MarkNtel Advisors’, the market of the video conferencing across the globe is highly fragmented due to the presence of numerous local and foreign players operating in the market. The companies with a considerable market share in the industry are Adobe Inc., Array Telepresence Inc., Avaya Inc., Cisco Systems Inc., Huawei Technologies Co. Ltd., Logitech International SA, Microsoft Corporation, Polycom Inc., Vidyo Inc., West Corporation, among others. The companies are launching new solutions, doing strategic alliances to capture the major market share in the industry. For instance, Adobe Inc launched the “Adobe Connect”, a video conferencing software in 2019, that has the feature of screen sharing and cloud deployment.
“Global Video Conferencing Market Analysis, 2020” provides comprehensive qualitative and quantitative insights on the industry potential, key factors impacting sales and purchase decisions, hotspots, and opportunities available for video conferencing providers across the Globe. Moreover, the report also encompasses the key strategic imperatives for success for competitors along with strategic factorial indexing measuring competitor's capabilities on 16 parameters. This will help companies in the formulation of Go to Market Strategies and identifying the blue ocean for its offerings.
1. By Components (Hardware (Camera, Microphone & Headphone, Others), Software, Services (Professional Services, Managed Services))
2. By Deployment Type (On-Premise, Cloud)
3. By Enterprise Size (Large Enterprise Small and Medium Enterprise)
4. By Type (Telepresence, Integrated, Desktop, Service Based)
5. By Application (Small Room, Huddle Room, Middle Sized Room, Large Rooms)
6. By End- Use (Corporate, Education, Healthcare, Government & Defense, BFSI, Media & Entertainment, Others)
7. By Region (North America, Europe, Asia-Pacific, Middle East and Africa, South America)
8. By Countries (U.S, Canada, Mexico, Brazil, Argentina, UK, France, Germany, Spain, Italy, UAE, Saudi Arabia, South Africa, China, Japan, India, South Korea, Others)
9. By Company (Adobe Inc., Array Telepresence Inc., Avaya Inc., Cisco Systems Inc., Huawei Technologies Co. Ltd., Logitech International SA, Microsoft Corporation, Polycom Inc., Vidyo Inc., West Corporation, etc.)
Key questions answered in the study:
1. What are the current and future market trends of the Global Video Conferencing industry?
2. How the industry has been evolving in terms of end-user demand and application areas?
3. How the competition has been shaping across the region followed by their comparative factorial indexing?
4. What are the key growth drivers and challenges for the Global Video Conferencing industry?
5. What are the customer orientation, purchase behavior, and expectations from the Global Video Conferencing firms across various regions?