Video Conferencing Market Growth Drivers and Forecast by 2027

The Video Conferencing Market was valued at US$ 464.7 Mn in 2019 and is projected to reach US$ 1577.6 Mn by 2027; it is expected to grow at a CAGR of 16.9% from 2020 to 2027.

Video conferencing is a live video-based platform made for conducting meetings between two or more individuals in distinct locations through a video-enabled device. It enables several individuals to meet and collaborate face to face through long distance meeting by transmitting video, audio, text, and presentations in a real time via internet. The adoption of video conferencing has increased rapidly in the last few years. The businesses are observing a broad array of advantages as the companies are replacing their obsolete web or audio conferencing contracts with a modern cloud-based video conferencing solutions. Through their video conferencing solutions, players such as Zoom and Lifesize help enhance team communications and collaborations while increasing employee engagement and reducing operating costs. Advancements in the 5G communication technology and efforts toward its commercialization are among the factors fueling the growth of the global video conferencing market. Roll out of 5G would encourage the employees to conduct office meetings from personal devices such as smartphones and laptops. With the growing preference for flexible workplace, mainly among the millennial population, the video conferencing market for both hardware and software is likely to progress in the coming years.

The countries in Asia Pacific region are the fastest growing economies in the world. The rate of industrialization in APAC is stupendous, and it is expected to continue in coming years. Several large enterprises in the region are expanding their business across the APAC region, leading the industrialization at a prime rate. Additionally, emerging SMEs with higher capital investments are also expected to boost the adoption of video conferencing tools. Thus, considering the growth prospect of large enterprises and SMEs in the region, the video conferencing market players in the region are anticipated to witness a significant demand. Countries such as China, Japan, South Korea, India, Taiwan, and Singapore are technologically advancing, by hosting numerous large enterprises and SMEs year on year. Traditionally, the enterprises in these countries used Virtual Private Network (VPN) to interact among teams or clients. With the evolution of video conferencing tools, the majority of large enterprises and several SMEs are switching to advanced solutions. The governments in APAC countries have started incorporating video conferencing tools to interact with government officials and hold important meetings regularly. The awareness related to the benefits of video conferencing over telephonic or in-person meetings is rising, which is expected to boost the growth of the video conferencing market. At present, the defense forces in the region are also using video conference solutions, with an objective to discuss several important issues with multiple participants. With the increase in procurement of advanced video conferencing tools among government sector and defense forces in APAC, the video conferencing market is expected to witness substantial growth in the coming years.

The outbreak of COVID-19 has led several countries across APAC to impose lockdown and restrict individuals to come out of their house. This has led the governments, enterprises, schools to use video conferencing tools to interact with individuals. The service providers operating in the video conferencing market are experiencing tremendous demand from numerous end users, which is catalyzing the video conferencing market.

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Market Insights

Increasing Adoption of Advanced Technology in Educational and Healthcare Sectors

The educational and healthcare sectors are maturing across developing countries and are continuously experiencing the emergence of advanced technological solutions to increase efficiency. Traditionally, these sectors used room based interaction strategies; however, with the rise in technology, these sectors are investing in virtual solutions for better performance. In recent years, several educational institutions and healthcare organizations are incorporating video conferencing tools to educate students and treat located remotely patients. This is a crucial driving force for the video conferencing market.

Component-Based Market Insights

Based on component, the Video Conferencing market is segmented into hardware, software, and services. Video conferencing solutions are increasingly becoming commonplace in every organization across industries. With an objective to interact with remotely located employees, or clients, or with any individuals located at disparate geography, the demand for video conferencing solutions is steeply growing. The rise in demand has been reflecting growth in the number of video conferencing hardware manufacturers, software developers, and service providers across the globe

Deployment Type Based- Market Insights

The video conferencing market encompasses large enterprises as well as small & medium enterprises (SMEs). The organizations are exercising paradigm shift from traditional video conferencing systems to modern-day video conferencing solutions. Companies across the world are looking forward to integrating their video conferencing with cloud-based applications. However, increasing dependency on the cloud has increased the threats from cyber-attacks. Thus, companies using for on-premise solutions are emphasizing towards hybrid solutions with an objective to utilize the benefits of highly secured on-premise solutions with an optimized cloud architecture.

Video Conferencing Market Report Scope

Industry Vertical Based- Market Insights

The video conferencing market has been analyzed on the basis of different industry verticals such as corporate enterprises, government & defense, healthcare, education, manufacturing, and others. With the increase in globalization and the presence of numerous large enterprises as well as SMEs across different industries, the companies are extensively focusing on increasing their productivity. In an attempt to interact with clients, employees, doctors, patients, students, and defense personnel, the industry end users are constantly emphasizing on procuring video conference solutions. This factor is driving the video conferencing market across the industry vertical.
Product development is the commonly adopted strategy by companies to expand their product portfolio. Adobe Systems Inc., Zoom, Avaya Inc., Cisco Systems Inc., Google LLC, Huawei Technologies, Ltd., Lifesize Inc., among others are the key players implementing strategies to enlarge the customer base and gain significant share in the global Video Conferencing Market, which in turn permits them to maintain their brand name. A few of the recent key developments are:

• In 2020, Adobe Connect plays a crucial role is expanding its support due to spread of Adobe Connect. The product is helping schools, emergency response teams, communities, and businesses along with large virtual conferences and public health training arena.
• In 2020, Huawei revealed Huawei IdeaHub category of videoconferencing systems. The IdeaHub is an intelligent endpoint that integrates varied functions such as multi-screen collaboration between the mobiles and PCs, FHD video conferencing, remote collaboration, Huawei Cloud WeLink service, interactive whiteboard, and built-in HD AppGallery.

Video Conferencing Market Segmentation:

By Components

• Hardware
• Software
• Service

By Deployment Type

• Cloud
• Hybrid
• On-Premises

By Industry Vertical

• Corporate Enterprise
• Government & Defense
• Healthcare
• Education
• Manufacturing
• Others

Company Profiles

• Adobe Systems Inc.
• Zoom
• Avaya Inc.
• Cisco Systems Inc.
• Google LLC
• Huawei Technologies, Ltd.
• Lifesize Inc.
• Microsoft Corporation
• Polycom Inc.
• ZTE Corporation

Published Report - Video Conferencing Market Regional Insights

The regional trends and factors influencing the Published Report - Video Conferencing Market throughout the forecast period have been thoroughly explained by the analysts at The Insight Partners. This section also discusses Published Report - Video Conferencing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Published Report - Video Conferencing Market Report Scope

Published Report - Video Conferencing Market Players Density: Understanding Its Impact on Business Dynamics

The Published Report - Video Conferencing Market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.