Market Insight- Global Video PaaS Market
Video platform-as-a-service (PaaS) is a cloud-based solution that facilitates developers to include real-time video communication features without needing to build backend infrastructure and interfaces. Video PaaS offers all types of services and tools required to embed real-time communication capabilities into web-based applications. Moreover, it can develop real-time communications applications, business processes or mobile apps. To accelerate time-to-market for communications-rich services and applications, systems integrators (SIs) independent software vendors (ISVs), and service providers can leverage a PaaS. It can also be used by IT organizations for customer-facing applications or to communications- enable business processes that are cost-effectively and quick to access.
The global Video PaaS market was estimated to account for US$ 3, 09,130 Mn in terms of value by the end of 2019
Market Dynamics- Drivers
- Increasing globalization of business organizations is expected to drive growth of the global video PaaS market during the forecast period
Technological advancements in communication have enabled companies to perform virtual meetings through video conferencing, video collaboration, and real-time video communication with employees/clients located all over the world. Network cloud platform technologies provide space for business organizations to come together and share business opportunities globally. The capability to transfer and connect information regardless of location is what makes collaboration easier and more effective. Therefore, increasing globalization of business organization is increasing the adaptation rate of Video PaaS across all big and small business organizations in the world. Thus, these factors are expected to drive the global video PaaS market growth during the forecast period.
- Growing demand for video conferencing services, especially in media, education, and healthcare industries is expected to propel the global video PaaS market during the forecast period
Growing requirement for enterprise mobility combined with increasing number of mobile users have led to many businesses to adopt cloud-based video conferencing services. This high adoption is majorly observed in various sectors including healthcare, education, government, and media, which is expected to support the market growth over the forecast period. Video conferencing allows data sharing that is not performed in live meetings. Moreover, other side recordings of video conferences offers critical records for regulatory and security requirements. These factors are expected to boost the global video PaaS market during the forecast period. According to Coherent Market Insights’ analysis, the U.S. holds dominant position in the cloud-based video conferencing services while the Asia Pacific region is expected to be the fastest growing market.
North America region dominated the global Video PaaS market in 2019, accounting for 86.3% share in terms of value, followed by Asia Pacific, and Latin America respectively
Market Dynamics- Restraints
- Risk associated with data security is expected to restrain growth of the global video PaaS market over the forecast period
Increasing cyber-attacks and privacy issues are some of the major challenges for the global video PaaS market. Increasing information security is one of the major concerns for companies, especially while implementing secure video communications in corporate network, wherein B2B communication via IP requires safe infrastructure of firewall. Moreover, risk of data loss, information leakage, hacking issues, and more are expected to hinder the market growth over the forecast period.
- Increasing issues regarding quality are expected to hinder the global video PaaS market growth over the forecast period
High-quality video conferencing is primary priority for business organizations, as there are many issues regarding quality of video. Consumer expectations, especially in business applications, are not being fulfilled by the current standards of video quality. Furthermore, rising familiarity with high-definition and 4K resolution video continue to increase concerns over quality of video conferencing. Providing poor quality video conferencing service can affect consumer experience, which in turn, will compel participants to find an alternate solution. Hence, these factors are expected to hamper the global video PaaS market growth in the near future.
- Increasing penetration of high-speed internet is expected to present major business opportunities for market players
According to Coherent Market Insights’ analysis, around 40% of global population are access to an internet connection. Video communication is one of the highlighting features of internet access and hence there is an increasing demand for video PaaS by enterprises as well as developers. Therefore, increasing penetration of internet is expected to offer major growth opportunities during the forecast period.
- Growing adoption of private cloud is expected to provide excellent growth opportunities in the near future
One of the major advantages of private cloud is it offers enhance security and control over the date. There is always a risk of hacking and data leak when it is stored onto public cloud. Thus, private cloud has become a preferable option for small as well as large enterprises in video commination applications. According to Coherent Market Insights’ analysis, in terms of security, private cloud accounts for 60% share as compared to public cloud and is the most preferred deployment type for video PaaS. Such factors are expected to pose excellent growth opportunities for major market players over the forecast period.
Global Video PaaS market, by end-use segment, education sub-segment was accounted for 41.7% market share in 2019 and is expected to grow at a CAGR of 50.2% between 2019 and 2027.
- Increasing Popularity of 3D video conferencing is major trend in the global market
Advancements in technology has offered 3D video conferencing software systems that offer a wide range of opportunities for individuals, business, and corporate entities who need virtual meeting capabilities to communicate across distances. Special cameras such as TrueConf 3D allows live stereo imaging and simultaneous transmission of three-dimension media across networks. Furthermore, 3D video conferencing facilitate users to collaborate and exchange dialogues with colleagues and clients in a setting that offers enhanced video conference experience. According to Coherent Market Insights’ analysis, Europe and North America hold dominant position in the global 3D video conferencing market and account for 80% of the total market share.
- Availability to develop customized application is another major trend in the market
PaaS is a category of cloud computing services that provides an application development platform with a development tool hosted in the cloud and accessed through a web browser. The cloud resources are managed and deployed by cloud service providers whereas end users have can use the service on pay-per-use basis. Moreover, developers can build new web application without installing any tools at their end and deploy applications without any specialized system administration skills.
Key players operating in the global video PaaS market are Vidyo, Sightcall, Sinch, GENBAND, Twilio, Inc., TokBox, Agro.io, and Xura.
- Key players in the market are focused on mergers and acquisitions, in order to gain competitive edge in the market. For instance, in August 2018, Vonage, a U.S.-based cloud communications provider, acquired TokBox for US$ 35 million in cash.
- Key companies in the market are involved in product launches, in order to enhance their product portfolio. For instance, in March 2016, io introduced Agora Video. It is a cloud offering that provides premium multi-party video conferencing globally between WebRTC-compliant Web browsers and mobile devices.