Global video conferencing market is Estimated to Witness High Growth Owing to Increasing Demand for Cloud-Based Video Conferencing Solutions is Driving Market Growth
Global video conferencing market is estimated to be valued at US$ 11.43 Bn in 2024, exhibiting a CAGR of 9% over the forecast period (2024-2031). Furthermore, the shift towards remote work owing to the COVID-19 pandemic has accelerated adoption of video conferencing solutions across various industry verticals.
Market Dynamics:
The growth of the global video conferencing market is driven by the increasing popularity of remote working models and need for virtual collaboration tools among organizations. The COVID-19 pandemic disrupted traditional working models and forced companies to embrace digital transformation. This has boosted the demand for advanced video conferencing solutions that enable seamless remote collaboration. Furthermore, the growing adoption of cloud-based video conferencing platforms due to benefits such as scalability, flexibility, and low upfront costs is also fuelling the market growth. Availability of sophisticated conferencing solutions with capabilities like interactive white boarding, content sharing and analytics is further augmenting the sales prospects.
Increasing Demand for Cloud-Based Video Conferencing Solutions is Driving Market Growth
Cloud-based video conferencing solutions are seeing higher adoption rates as they provide flexibility and scalability without large upfront investments. Businesses can use cloud-based video conferencing services through a web browser or mobile app without needing to purchase and install on-premise hardware. This has made video conferencing accessible to smaller companies and remote/mobile workers. Cloud services also offer automatic software updates and centralized management. Leading providers like Cisco, Microsoft Teams, and Zoom have made substantial investments in their cloud-based offerings. As more businesses embrace flexible work setups, the demand for scalable and affordable cloud-based video conferencing is expected to drive significant market growth in the coming years.
Interoperability Issues between Different Platforms Restrict Wider Adoption
Lack of interoperability between video conferencing solutions from different vendors poses a major challenge. Users often need to invest in the same platform for a consistent experience across devices, locations and meeting organizers. This vendor lock-in effect decreases flexibility and forces additional expenses. Though initiatives like SIP/H.323 aim to enable cross-platform communication, technical and commercial barriers have slowed down progress. As long as a common and open standard for interoperability is absent, many organizations will be hesitant to fully adopt video conferencing at scale, limiting market potential. Vendors also have little incentive currently to support interoperability beyond their own ecosystems. Overcoming these interoperability issues is crucial for wider acceptance of video conferencing.
Work from Home Trend Presents Lucrative Opportunities
The COVID-19 pandemic accelerated workplace virtualization worldwide as "work from home" became the new norm. With a distributed workforce now commonplace, video conferencing has emerged as a necessity for seamless remote collaboration and communication. Even as restrictions ease, hybrid work models will likely continue. This long-term shift to flexible work environments opens up major opportunities. Increased investments can be expected from companies to empower their remote employees through robust video conferencing solutions. Vendors stand to gain by addressing the unique needs of both organizations and individual users in affordable and user-friendly ways. The adoption tailwinds from the work from anywhere trend are expected to propel strong future demand in both mature and emerging markets alike.
Link - https://www.coherentmarketinsights.com/market-insight/video-conferencing-market-4414
Key Developments:
In March 2024, Microsoft Corporation and Oracle are enhancing their strategic partnership to address the growing demand for Oracle Database Azure worldwide. As part of this expansion, Oracle Database Azure will be launched in five additional regions, increasing the total planned multi-cloud availability to 15 regions globally.
In March 2024, Cisco Systems Inc. recently entered into a five-year portfolio agreement with BBVA to enable the bank to access Cisco's full suite of software and comprehensive customer experience (CX) offerings more swiftly. The agreement encompasses solutions in collaboration, cybersecurity, data centers, networking, and services.
In February 2024, Huawei Technologies Co., Ltd. announced the signing of a memorandum of understanding with UAE telecom operator "du" to further progress the development of 5G Advanced projects, aimed at supporting the digital transformation of the UAE.
Key Players:
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.)
