Video conferencing is conducting conferences using technologies for allowing real-time, two-way transmission of video and audio. The majority of organizations are shifting towards conference meetings so as to reduce traveling hassles and allow faster decisions. The global video conferencing market focuses on five regions namely North America, Latin America, Europe, Asia Pacific, and Middle East & Africa.
The global video conferencing market is estimated to account for US$ 11,177.2 Mn in terms of value by the end of 2028.
Market Dynamics- Drivers
Various businesses are looking to gain leverage of the competitive advantages offered various geographical locations, in order to reduce operating costs. Globalization has offered organizations numerous benefits such as availability expertise, leverage of local infrastructure, and reduction of material procurement costs. Organizations need to constantly maintain communication between its headquarters and other offices located remotely, in order to ensure the smooth functioning of numerous offices across the world. Video conferencing solutions offer a viable solution to minimize traveling costs and maintain status updates from all offices of an organization. In addition, video conferencing solutions enable organizations to effectively and quickly communicate with numerous personnel based in multiple locations. Furthermore, organizations can take leverage of virtual project management with regionally-dispersed teams, in order to achieve productivity and efficiency. Hence, these factors are expected to drive growth of the global video conferencing market during the forecast period.
Government agencies are rapidly adopting video conferencing solutions, in order to reduce government expenditure on traveling and operations. Video conferencing offers a viable solution to reduce the cost pertaining to inter and intra-governmental agency communications including training and education, joint planning, continuity of operations, multi-organization collaboration and coordination, secure communications, and community and citizen outreach programs. Moreover, video conferencing provides an efficient and secure communication medium for the judicial as well as correctional facilities. Video conferencing solutions are implemented in the judicial and correctional environments for processes including visitations, arraignments, court appeals, scheduled court hearings, witness testimony, and court recordings. As a result of this, it has increased productivity, reduced cost, and enhanced work-life balance. Hence, these factors are expected to propel the market growth over the forecast period.
North America held dominant position in the global video conferencing market in 2020, accounting for 36.9% share in terms of value, followed by Europe, Asia pacific, Middle East, and Latin America respectively.
Figure 1: Global Video Conferencing Market Share (%), in terms of Value, By Region, 2020
Market Dynamics- Restraints
Many organizations prefer to deploy and maintain in-house video conferencing solutions, in order to achieve a higher degree of information security. An in-house video conferencing solution is comprised of a multipoint control unit (MCU), video gateways, video conferencing end-points, and peripherals, video system components, microphones, speakers, cameras, displays, etc. However, the initial installation cost of video conferencing significantly high. Organizations need to bear high costs when procuring such varied components required to establish in-house video conferencing solutions. Furthermore, the costs incurred in dealing with interoperability and scalability issues within the video conferencing infrastructure is expected to restrain growth of the global video conferencing market during the forecast period.
Information security is vital for organizational communications. Sensitive information related to various critical business process is communicated to participants across the globe. Since organizations use managed and cloud-based video conferencing solutions, they are susceptible to numerous security threats. Besides, organizations hesitate to use third-party service providers for maintaining video conferencing infrastructure and services due to the risk of such security threats. Therefore, these factors are expected to hinder the global video conferencing market growth over the forecast period.
|Base Year:||2019||Market Size in 2020:||US$ 6,308.7 Mn|
|Historical Data for:||2016 to 2019||Forecast Period:||2021 to 2028|
|Forecast Period 2020 to 2027 CAGR:||6.4%||2027 Value Projection:||US$ 11,177.2 Mn|
Polycom, Inc., InterCall (West Corporation), Avaya, Inc., Adobe Systems, Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd, Microsoft Corporation, ZTE Corporation, Vidyo, Inc., and Lifesize (Division of Logitech International S.A.)
|Restraints & Challenges:||
Small and medium enterprises (SMEs) constitute a substantial proportion of the overall corporate enterprise segment across the world. SMEs comprise start-ups, businesses catering to limited applications, or companies operating in a niche market. On account of such factors, SMEs face several issues including the lack of availability of capital and human resources for adopting technologies such as video conferencing. According to the Asia Pacific Economic Cooperation (APEC) and the Association of Southeast Asian Nations (ASEAN), SMEs account for 96% of the total enterprises operating in these regions.
Rising concerns regarding healthcare costs and quality of patient care have led to the emergence of the healthcare video conferencing market. It has enabled novel solutions for healthcare organizations, in order to reduce the impact of low doctor-to-patient ratio and enhanced availability and accessibility of healthcare business. Video conferencing solutions are widely adopted in the healthcare segment for remote patient monitoring, consultation, and healthcare education. Video conferencing solutions are also deployed during critical surgeries to provide expert consultation and other referral services. Moreover, healthcare organizations make use of video conferencing solutions to offer healthcare education and awareness services to the general public. Numerous healthcare experts, physicians, and medical practitioners around the world can communicate with each other for education and training purposes.
Figure 2: Global Video Conferencing Market Value (US$ Mn), 2017 - 2028
The global video conferencing market was valued at US$ 6,308.7 Mn in 2020 and is forecast to reach a value of US$ 11,177.2 Mn by 2028 at a CAGR of 6.4% between 2021 and 2028.
On-premise video conferencing refers to a set-up where the entire video conferencing solution including the infrastructure, network, and end-points are owned and located on premise of an organization. Such on premise solutions require a high initial investment, and a team of technical experts to manage and control various video communications in the organization. Despite its high cost, on premise video conferencing solutions offer various benefits such as total control over the video conferencing infrastructure, thereby ensuring a high degree of information security.
In managed video conferencing solutions, organizations only need to acquire the end-points or peripherals required for video conferencing including camera, speakers, and microphones. Video conferencing infrastructure including multi-point control units (MCUs), video conferencing systems, and other advanced applications and features are all provided and managed by the video conferencing service provider. Managed video conferencing services comprise network and service management, bridging, scheduling services, and user support.
Key players operating in the global video conferencing market are Polycom, Inc., InterCall (West Corporation), Avaya, Inc., Adobe Systems, Inc., Cisco Systems, Inc., Huawei Technologies Co., Ltd, Microsoft Corporation, ZTE Corporation, Vidyo, Inc., and Lifesize (Division of Logitech International S.A.).
Global Video Conferencing Market - Impact of Coronavirus (Covid-19) Pandemic
According to Coherent Market Insights’ analysis, the impact of coronavirus (COVID-19) pandemic on the video conferencing market is significant. Due to social distancing policy applied by various governments across the globe, many companies are adopting work from home policies for safety of their employees. For instance, according to Coherent Market Insights analysis, In the US, more than 61.3% employees are working from home currently, which is driving the demand for Video Conferencing solutions.
Video conferencing is conducting conferences using technologies for allowing real-time, two-way transmission of video and audio. This communication can be between two or more users irrespective of their location, which features audio and video transmission. Organizations across the world are adopting video conferencing so as to reduce traveling cost and enhance productivity of organizations. Enterprises across various industries are adopting video conferencing solutions including healthcare, government, defense, education, corporate, and others.
The demand for video conferencing is rapidly increasing as companies are focusing on the global market. Globalization has offered organizations numerous benefits such as leverage of local infrastructure and reduction of material procurement costs. Video conferencing solutions are cost effective communication solution for businesses which drives the market growth during the forecast period.
Furthermore, due to COVID 19 pandemic many companies are shifting towards hybrid model of work (combination of both Work from home and office based model) which will further propel the demand for video conferencing solution during the forecast period. For instance, according to Coherent Market Insights analysis in 2020, more than 60% employees were working from home this trend is expected to continue even after pandemic.
This report segments the global video conferencing market on the basis of deployment model, end-use industry and region. On the basis of deployment model, the global video conferencing market is segmented into on premise, managed, and cloud-based. On the basis of end-use the global video conferencing market is segmented into corporate enterprises, healthcare, government and defense, education, and others. On the basis of region, the global video conferencing market is segmented into North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.
Key features of the study:
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