Video Conferencing Market size worth over $50bn by 2026
Published Date: May 19, 2020 Authors: Preeti Wadhwani, Saloni Gankar
Video Conferencing Market size is set to exceed USD 50 billion by 2026, according to a new research report by Global Market Insights, Inc.
The growing demand for technology-enabled video conferencing solutions is driving the market growth. Rapid adoption of cloud-based solutions and incorporation of 3D technology have enhanced the quality of human-centric communication. The 3D video conference system provides immersive telepresence and real representation of all participants. It ensures eye contact and gesture-based interactions of participants in a conference room. In addition, the technology providers are integrating innovative technologies, such as AR/VR, for extending the capabilities of solutions.
With the ongoing coronavirus (COVID-19) pandemic and disruptions in large gatherings, demand for remote training is increasing, eventually driving the video conferencing market demand. Several global enterprises including Microsoft Corporation, Google LLC, Apple Inc., Hitachi Ltd., and Amazon have announced mandatory work-from-home policies to prevent the spread of COVID-19. The rapidly increasing cases of virus has necessitated the demand for video conferencing software as business travel, educational institutes, conferences are cancelled globally.
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Need to reduce communication cost is propelling the cloud-based video conferencing software market
With rapidly changing business dynamics, companies are shifting toward cloud applications for maintaining and expanding communication resources in a cost-effective manner. This has helped enterprises to reduce upfront expenses by transferring designing of communication solutions to expert service providers. Companies in the video conferencing market are focusing on software innovations to capitalize growth opportunities. For instance, in November 2019, 8x8, Inc., a Software-as-a-Service (SAAS) provider launched 8x8 Video Meetings, a cloud-based solution for its new and existing customers to join meetings directly from their browser without the need to download plugins.
The desktop segment will witness high growth in the video conferencing market with increasing demand for affordable and high-quality solutions
The desktop segment growth is attributed to its benefits of high quality and low cost of optimization. The availability of desktop integrated with advanced microphones, camera, and speakers allows effective processing of information. Companies are focusing on providing desktop conferencing solutions for personal video conferences with innovative design and HD quality. For instance, Cisco Systems, Inc., is offering Cisco DX80, a part of its DX series desktop line for audio & video conferencing collaboration.
Browse key industry insights spread across 270 pages with 377 market data tables and 33 figures & charts from the report, “Video Conferencing Market Size By Component (Hardware [Multipoint Control Unit (MCU), Codecs, Peripheral Devices], Software [On-premise, Cloud], Service [Professional, Managed]), By Type (Room-Based, Telepresence, Desktop), By Application (Corporate Enterprise, Education, Government, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Impact of COVID-19 and rapid digitalization in the education sector will surge the market demand for advanced solutions
Education application holds more than 10% video conferencing market share. The growing evolution of the education sector has resulted in the increased demand for new curriculum standards globally. Universities, schools, and community colleges are majorly investing in HD video collaboration for improving engagement between educators and students. The trend of distance learning programs among students for upgrading their knowledge base has resulted in the increased demand for high-quality and affordable solution.
Video conferencing platforms, such as Google Hangouts, Adobe Connect, and Cisco WebEx, are offering customized solutions for students with specific e-learning needs and budget. The ongoing COVID-19 pandemic has further encouraged institutions to adopt online learning. According to the UNESCO, in March 2020, over 1.2 billion students in 186 countries were affected by school closures due to the pandemic. Video conferencing applications along with virtual tutoring and online learning software have witnessed significant surge since the COVID-19 outbreak.
Established industry players focused on introducing innovative solutions is driving the North America market
The North America video conferencing market accounted for over 40% revenue share owing to presence of established players along with the availability of highly sophisticated network infrastructure. The market players are continuously focusing on integrating innovative technologies into the solution to attract a large customer base and expand their presence in the market. For instance, in May 2020, Kaltura, the U.S.-based video platform provider launched Kaltura Meetings provide one-click entry and eliminating the need for cumbersome installation and downloads.
The COVID-19 pandemic has accelerated the rapid adoption of meeting solutions by businesses in North America. The crisis has resulted in the cancellation of large conferences and smaller meetings in the region. For instance, the Microsoft MVP summit 2020 that was going to be held in Washington, U.S. was cancelled due to the rising spread of COVID-19. The company conducted the event using video conferencing tools in March 2020.
Strategic alliances between leading market players and other prominent players to boost industry growth
Key market players operating in video conferencing market include Adobe Systems Inc., KOLLECTIVE, Citrix Systems Inc., BlueJeans Network, Inc., LogMeIn Inc., Huawei Technologies Co. Ltd., Lifesize Inc., ReadyTalk, Pexip, Zoom Video Communication Inc., Google Inc., Premiere Global Services Inc., Polycom, Cisco systems, Inc., Microsoft Corporation, Highfive, Vidyo Inc., Vbrick, uStudio Inc., MediaPlatform, Inc., Avaya Inc., and Fuze Inc.
The video conferencing industry is highly volatile and fragmented due to the presence of large number of players. These market players are focusing on strategic partnerships with other prominent players for enhancing solution capabilities. For instance, in December 2019, BlueJeans Network, Inc., partnered with Samsung Corporation for offering its video conferencing solution on Samsung’s latest smartphone models. The partnership has helped customers to use BlueJeans Meetings in high-quality video on 4G and 5G networks.