SAN FRANCISCO, June 9, 2021 /PRNewswire/ -- The global video conferencing market size is expected to reach USD 9.95 billion by 2028 with a CAGR of 11.4% over the forecast period, according to a new report by Grand View Research, Inc. Trends such as the increasing transition towards cloud and the growing adoption of Video Conferencing as a Service (VCaaS) are expected to drive market growth. As remote and globalized working models are becoming popular, the move to the cloud is becoming inevitable, thereby driving the demand for video conferencing solutions.
Key Insights & Findings:
- In terms of components, the software segment is expected to register the highest CAGR over the forecast period. This can be attributed to the increase in cloud-based subscriptions across different platforms
- Small and medium-sized companies are adopting these services to rapidly expand their geographic operations by establishing a centralized communication platform that uses advanced technologies, such as 4G and VoIP. Hence, the small and medium enterprises segment is expected to expand at a promising pace over the forecast period
- In terms of end use, the healthcare sector is expected to witness substantial growth over the next few years. The need to remain connected across dispersed teams has elevated the demand for video conferencing solutions in the healthcare sector
- Growth in the educational sector has also gained traction owing to the increased demand for distance learning. Web conferencing, audio conferencing, and IM are being widely used for delivering notes and streaming live conferences
- Market players offer a competitive pricing structure and bundle services to help the end users save costs. Recently, companies such as Ring Central and 8x8, Inc. have updated their pricing structures with multiple tiers of pricing plans
Read 150 page market research report, "Video Conferencing Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By Deployment, By Enterprise Size, By Application, By End Use, By Region, And Segment Forecasts, 2021 - 2028", By Grand View Research
Due to the COVID-19 pandemic, a large number of organizations globally have encouraged their employees to work from home or remotely, driving the demand for video conferencing applications and software. The education sector witnessed a notable rise in the demand for these solutions in 2020 to continue with online learning and seminars. The primary growth driver for the market, especially in 2020, remained the need for organizations to facilitate employee collaboration, which led to the demand for conferencing apps such as Microsoft Teams, Google Meet, and Zoom. Several companies have witnessed the digital transformation in just 2 to 3 months that would otherwise occur over two years due to the COVID-19 pandemic. However, despite the elevated demand, security concerns have posed to be a challenge to market growth.
"Video conferencing solutions witnessed high adoption rates from corporate houses as well as the education sector during the global COVID lockdown."
The increased demand for these solutions has encouraged market players to offer products with distinctive features and innovations to remain competitive. In 2020, Google Meet, Google's video meeting tool that was meant to be an enterprise solution, was made available to everyone to directly compete with competitors. Furthermore, in April 2020, Facebook launched its video meeting tool Messenger Rooms, which allows 50 people to join a video conference. In March 2020, Microsoft Corporation rebranded Office 365 to Microsoft 365 to go beyond enterprise customers, which widened its subscriber base.
"Organizations with a global footprint, are the pioneer end-users of video conferencing technologies."
Companies with a global presence and workforce are the early adopters of video conferencing technology and more likely to deploy video conferencing systems to enable effective communication between multiple teams located in different countries. Video conferencing technology also provides a better social interaction platform as compared to conventional voice calls as it offers features such as eye-to-eye contact. With the increasing globalization of businesses worldwide, the need is strong to set up a flexible, cost-effective, and scalable communication network, which helps facilitate better communication, team collaboration, and decision-making capability.
Grand View Research has segmented the global video conferencing market based on component, deployment, enterprise size, application, end use, and region:
- Video Conferencing Component Outlook (Revenue, USD Million, 2017 - 2028)
- Professional Services
- Managed Services
- Video Conferencing Deployment Outlook (Revenue, USD Million, 2017 - 2028)
- Video Conferencing Enterprise Size Outlook (Revenue, USD Million, 2017 - 2028)
- Large Enterprises
- Small & Medium Enterprises (SMEs)
- Video Conferencing Application Outlook (Revenue, USD Million, 2017 - 2028)
- Video Conferencing End-use Outlook (Revenue, USD Million, 2017 - 2028)
- Government & Defense
- Media & Entertainment
- Video Conferencing Regional Outlook (Revenue, USD Million, 2017 - 2028)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
List of Key Players in the Video Conferencing Market:
- Avaya, Inc.
- Cisco Systems, Inc.
- Huawei Technologies Co., Ltd.
- Logitech International S.A.
- Microsoft Corporation
- Polycom Inc.
- Zoom Video Communications, Inc.
Check out more studies related to remote working software and technologies:
- Virtual Events Market–The global virtual events market size was valued at USD 77.98 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 23.2% from 2020 to 2027.
- Enterprise Video Market–The global enterprise video market size was valued at USD 14.98 billion in 2019 and is excepted to expand at a compound annual growth rate (CAGR) of 11.6% from 2020 to 2027. The growth is driven by increasing need among organizations to reduce the expenses incurred in connecting geographically dispersed employees.
- Team Collaboration Software Market–The global team collaboration software market size was valued at USD 10.48 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 13.0% from 2021 to 2028.
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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