Video Conferencing Market Analysis

Market Overview

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

1. Management of business in a global context is expected to drive growth of the global video conferencing market during the forecast period

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.

2. Proactive government initiatives to increase adoption of video conferencing is expected to propel the global video conferencing market growth over 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.

Statistics:

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

1. High initial investments are expected to restrain growth of the global video conferencing market during the forecast period

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.

2. Challenges associated with information security is expected to hinder the global video conferencing market growth over 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.

Video Conferencing Market Report Coverage

Report Coverage	Details
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
Geographies covered:	North America: U.S., Canada Latin America: Brazil, Argentina, Mexico, Rest of Latin America Europe: Germany, U.K., Spain, France, Italy, Russia, Rest of Europe Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, Rest of Asia Pacific Middle East: GCC Countries, Israel, Rest of Middle East Africa: South Africa, North Africa, Central Africa
Segments covered:	By Deployment Model: On-premise, Managed, Cloud-based By End-use industry: Corporate enterprises, Healthcare, Government and defense, Education, Others.
Companies covered:	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.)
Growth Drivers:	Management of business in a global context  Proactive government initiatives to increase adoption of video conferencing
Restraints & Challenges:	High initial investments Challenges associated with information security

Market Opportunities

1. Growing adoption of video conferencing solutions by SMEs can present lucrative growth opportunities

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.

2. Increasing application in the healthcare sector can provide major business opportunities

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.

Market Trends

1. Emergence of on premise video conferencing is a major trend

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.

2. Managed video conferencing is another trend

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.

Competitive Section

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.

Key Developments

1. Major market players are involved in product launches, in order to enhance the product portfolio. For instance, in June 2019, Polytronics, parent company of Polycom, Inc., launched USB-based video conferencing solution Polycom Studio.
2. Key companies are focused on product launches, in order to gain a competitive edge in the market. For instance, in September 2017, Avaya, Inc. introduced full HD video conferencing and collaboration cloud service Avaya Equinox Meetings Online.