Global Video Conferencing Market Research Report: Forecast (2023-2028)

Market Definition

Video conferencing software is a solution that enables two or more persons to talk and see each other remotely. It is a visual communication session between two or more users, featuring audio and video content transmission in real time.

Market Insights & Analysis: Global Video Conferencing Market (2023-28)

The Global Video Conferencing Market is projected to grow at a CAGR of around 9.5% during the forecast period, i.e., 2023-28. The market is primarily driven by the budding integration of advanced technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), and cloud technology. Some of the key factors contributing to the growth of the market are rapid globalization and the growing need for workforce management from a remote location. Besides, augmenting demand for video communication, virtual workforce management, and cloud-based collaboration platform, among others. In fact, numerous corporations tend to look for collaboration solutions in a bid to downsize the high costs associated with traveling while speeding up decision-making.

The adoption of video conferencing has witnessed a swift surge owing to the popular work-from-home policy in several corporations. As such, ZOOM Cloud Meetings, a free HD meeting app, has gained popularity in the past few years. Moreover, several initiatives laid down by the various government in encouraging digital adoption of services across Asia-Pacific further prompts the market ascension. For instance, the innovation challenge for the development of a video conferencing (VC) solution under the Digital India Program has been announced by the Ministry of Electronics and Information Technology (MeitY) in India. Furthermore, the surging demand for video conference solutions from various institutions, hospitals, and government & defense sectors for meetings, seminars, and classes are some of the key factors propelling the demand for video conferencing solutions

Key Trend in the Market

• Up-and-Coming Work-from-Home Policy

The COVID-19 pandemic impacted the global business environment, and organizations allow their employees to work from home for smooth business operations. So, there has been a surge in the demand for video conferencing solutions. Therefore, small-medium business organizations, as well as employee interaction, would contribute to the demand for video conferencing solutions for flexibility and a smooth business run which would contribute to the increasing market share in the forthcoming years 2023-28.

Market Segmentation

Based on End Users,

• IT/ITeS
• Banking Finance Services & Insurance (BFSI)
• Education
• Healthcare
• Government & Defence
• Media & Entertainment
• Education Institutes
• Others

In 2022, the IT/ITeS segment acquired a prominent market share, and the same trend is expected in the forthcoming years as well. It owes principally to the growing need to reduce operations costs and promote effective communication from remote locations. However, the emphasis of players such as Huawei Technologies and Microsoft Corporation in the industry to provide video conferencing solutions, especially for the corporates, is likely to maximize the market revenue in the coming years. Furthermore, the growing impulse to receive immediate medical assistance from a remote location coupled with the adoption of telemedicine services in countries such as the U.S., China, France, etc., imitates the adoption of video conferencing solutions in the healthcare sector, thereby stimulating the market advancement in the coming years.

Regional Projection

Geographically, the Global Video Conferencing Market expands across:

• North America
• South America
• Europe
• The Middle East & Africa
• Asia-Pacific

Among all, North America accounted for the largest share of the global video conferencing market in the historical period and is likely to prevail in the same trend. This dominance is primarily due to the unavoidable presence of tech giants accompanying a massive workforce. Being one of the most technically advanced regions across the globe, the countries here are heavily leaning towards video conferencing solutions, be it hardware, software, or services. Further, the growing affinity for remote or online learning has paved the way for more hybrid workspaces in the past few years, especially after the pandemic.

For instance, In December 2020, Cisco Systems, Inc. launched Webex Devices, including the Webex Desk, Webex Desk Camera, and Webex Desk Hub, to ramp up the remote working experience. Likewise, Facebook, Inc. introduced messenger Rooms which facilitate end-users to hold video conferences with up to 50 people. Along similar lines, StreamCam for content creators and broadcasters has been launched by Logitech. These advances in the field of Video Conferencing have encouraged market growth in the past few years. Also, added benefits such as time and cost-saving factors with regard to traveling and improved productivity further instigates the industry expansion.

Recent Developments in the Global Video Conferencing Market

• In October 2022, Logitech International SA introduced an artificial intelligence (AI)-powered tabletop camera, Logitech Sight, in order to make hybrid work meetings more equitable for remote workers. The new camera seeks to offer an "at the table" experience to remote participants attending conferences with their in-office colleagues.

Market Dynamics

Key Driver

• Expanding Cloud-based Enterprises Worldwide

Businesses worldwide are investing heavily in cloud services as they aid companies in receiving information through face-to-face and direct communication with several companies, distributors, suppliers, divisions, and customers. As such, spending on cloud conferencing, cloud infrastructure, and business intelligence software have skyrocketed in the past few years. Other factors propelling the sales of cloud-based video services are the ramping up presence of market players, reduced expenses paired with lesser travel time, and the mounting need for virtual meeting spaces. Moreover, since cloud computing aids in faster disaster recovery, companies are heavily leaning towards the adoption of these services in order to ensure data backup. These aspects are likely to drive industry growth during the forecast period.

Growth Opportunities

• Burgeoning Need for Conferencing Hardware Solutions

The relentless investment made by the companies such as Cisco and Huawei in offering hardware solutions has somewhat addressed the issues related to video conferencing hardware, such as poor camera, microphone, and display unit quality in recent years. In fact, with the advent of collaborative whiteboards for smart offices, telepresence systems, end-point solutions, ultra 4K UHD cameras, and premium microphones, the hardware industry is about to enthrall in the coming years. The introduction of a compact IP-based all-in-one end-point device having a camera, microphone, and HD codec has geared up the market for Conferencing Hardware Solutions, thereby pushing the overall market expansion.

Gain a Competitive Edge with Our Global Video Conferencing Market Report

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