Global Video Conferencing Market by Component (Software, Service, Hardware) and Region (North America, Latin America, Europe, Asia Pacific and Middle East & Africa), Forecast To 2028

Summary of the Report

Global video conferencing market was valued at USD 4.21 trillion in 2020. It is projected to grow at a compound annual rate (CAGR of 11.4%) between 2021 and 2028. Market growth is expected to be driven by factors such as globalization, geographic dispersion, and adoption of remote working models. Market growth will also be driven by the rapid adoption of videoconferencing solutions in the education and telemedicine sectors. Lockdowns that were implemented during the COVID-19 pandemic worldwide have led to a significant increase in the demand for teleconferencing and video conferencing solutions. This is because people and businesses sought new ways to stay connected.

Cloud conferencing software and services have seen an explosion in demand due to the sudden shift in many businesses to remote working. In the first half 2020, applications such as Zoom or Microsoft Teams saw an astronomical rise in usage. Despite the tremendous growth in software, 2020 saw a decrease in demand for video conferencing hardware. The temporary closures of companies and other industries had a negative impact on the demand for enterprise-level endpoints in the hardware segment. This led to a significant increase in consumer hardware like headsets and webcams .

Cloud-based video conferencing has allowed organizations to access vast amounts of information about their video meeting habits. Companies can optimize their use of collaboration platforms by using AI and HTML3_ machine learning HTML3_. This allows them to increase efficiency and productivity of meetings through the deployment of virtual assistants or facial recognition technologies. Artificial Intelligence (AI), has been used in conferencing solutions to give organizations insight into aspects such as the ideal length of a meeting and the best time to hold it. Voice recognition technology is enabling enterprises to analyze the content of meetings and draw comparisons between them. They can also make suggestions for connections between people with complementary skills.

Market growth is expected to be driven by the growing demand for enterprise communication and large-scale investments by different organizations in modernizing their communication networks. The demand for mobile devices is increasing due to the increased mobility of remote workers. This has also increased the popularity of conferencing solutions among consumers. Advanced hardware and conferencing solutions have been integral parts of many businesses that provide next-generation communication capabilities.

Component Insights

With a 47% revenue share, the hardware segment was the dominant market player in 2020. This growth can be attributed largely to the increased development and acceptance of endpoints like laptops, smartphones and desktops with high-resolution microphones, cameras, and speakers. Many organizations have adopted the work-from-home model in 2020. This has led to a decrease in demand and investments in enterprise hardware. Companies are also investing more in individual products than in enterprise hardware because of this trend.

The hardware segment is further segmented into cameras and microphones/headphones. The microphones/headphones segment witnessed sudden growth in 2020 due to the need for effective communication and the deployment of the work from home model. The headphones market has seen rapid growth due to the widespread adoption of software-based communication and collaboration solutions, such as Zoom videoconferencing or Microsoft Teams. The latest developments in IoT, augmented reality and other fields have led to the creation of new headsets that provide enhanced interconnectivity between devices. This will also be a positive for the future growth of the segment.

Information on Deployment

In 2020, the market leader in video conferencing was the on-premise segment. It accounted for a 59% revenue share. Large organizations are increasingly deploying on-premise video conferencing in response to growing concerns about data theft and the effective maintenance of information security systems. The growing popularity of cloud-based solutions is expected to slow down the growth of this segment over the forecast period. Companies are also moving towards the cloud revenue generation model in response to this trend. Avaya, Inc., for example, has transformed its revenue generation model to the cloud from legacy on-premise.

Over the next few years, the cloud segment will experience exceptional growth. These solutions make video conferencing services more accessible to end-users. They allow them to access the service via multiple channels such as mobile devices or laptops . Service providers are promoting the use of Software as a Service (SaaS), which allows for video conferencing services to be provided by small and medium-sized enterprises. The segment will also grow due to the development of more secure and password-protected cloud services.

Enterprise Size Insights

In 2020, the large enterprise segment accounted for 77% of all revenue. Because they require reliable and secure video conferencing solutions, large enterprises are the main clients of video conferencing services. Large companies are focused on improving their corporate networks and integrating with new technologies like SD-WAN. Service providers cater to multinational and multi-regional enterprises by offering enhanced video conferencing solutions that include business process integration, centralized provisioning, and service management.

Over the next few years, key players will be able to reap lucrative opportunities from the Small and Medium Enterprises segment. Due to the COVID-19 pandemic, SMEs are seeing the value of collaboration and conferencing. To gain a competitive edge, several market leaders are working on strategies to address this segment. Plantronics, Inc., for example, has redeveloped QDX6000, an SD videoconferencing system suitable for small to medium-sized meeting rooms.

Application Insights

In 2020, the enterprise segment was dominant in the market with a revenue share exceeding 84%. The conference video endpoints are room-based solutions that can be installed and configured in boardrooms and meeting rooms. These all-in-one systems do not require additional software or hardware. The codec communicates with other endpoints, and transmits video signals and data. Based on the increased use of enterprise video conferencing as a means for collaboration and communication among workers, the growth prospects for enterprise-based videoconferencing solutions was strong before the COVID-19 pandemic.

The pandemic has resulted in increased consumer-grade solutions and devices. Market players jumped at the chance to add enhanced features to their products to meet growing demand. In anticipation of future growth in demand, solution providers like Logitech offer a variety of webcams (in-office and portable) and Word from Home headsets (WFH), to meet current and future needs.

End-use Insights

In 2020, the corporate segment was dominant in the market and accounted for over 28% of revenue. This growth can be attributed largely to the rapid development of cloud-based collaboration and communication software, which has opened up new markets. Cloud-based platforms have been increasingly popularized for data sharing, collaboration, and communication. This is due to the increasing number of geographically dispersed or remote teams. Remote teams can use collaboration software and team communication to improve productivity, streamline business processes, and manage large projects.

Another promising sector that will see increased adoption is the government and defense sector. Companies in the public sector are using conferencing solutions to increase productivity and efficiency, particularly during the pandemic. These solutions enable government agencies to engage more people and make faster decisions. The segment is also experiencing a rise in demand for video conferencing due to the presence of distributed governments. As governments around the world prioritize cost control, move away from outdated telecom equipment and seek better connectivity with their mobile workforce, cloud-based solutions will be in high demand.

Regional Insights

North America was the dominant market for videoconferencing in 2020, with a revenue share exceeding 39%. In terms of adoption of videoconferencing solutions, the regional market is mature. There is still growth potential in the region for upgrading existing equipment and subscribing to cloud-based services. Regional growth is expected to be driven by increased demand for high-quality internet access and video meetings. Market growth will be further driven by the presence of key players and the increasing popularity of Bring Your Own Devices (BYOD), which has led to widespread adoption of webcams, headphones, and other devices.

Over the forecast period, the Asia Pacific region market will experience the most rapid growth. Although governments and business communities in the region encouraged work style innovation before the COVID-19 pandemic, the pandemic was a catalyst for the development of high-quality internet infrastructure that allows people to work remotely. This sudden shift towards remote working has increased demand for collaboration tools, videoconferencing equipment and accessories, which in turn has boosted the region's market growth. The regional market will grow due to technological advances in mobile broadband technology, including WiMAX and High-Speed Downlink Packed Access (HSDPA), in countries like India and Japan.

Market Share Insights & Key Companies

Market players have been encouraged to restructure and restructure their businesses following the COVID-19 pandemic. Cloud-based solutions are being heavily invested by market players to meet the demand for a remote workforce. Many companies are diversifying their offerings due to increased demand. Zoom Video Communications, Inc., for example, has entered the hardware market due to the significant increase in remote workers worldwide. Zoom launched its hardware devices category in July 2020. Zoom for Home – DTEN ME was the first device to be launched in this category. It is a personal collaboration device that allows remote workers to collaborate with each other.

To remain competitive, leading players also use partnerships, mergers and acquisitions, as well as collaborations. Cisco Systems, Inc. purchased BabbleLabs in October 2020 to enhance the functionality of Cisco WebEx Platform through speech enhancement and noise reduction technology. The acquisition has allowed the company to enhance its communications and conferencing capabilities, and improve the quality of its video meetings. The increased focus on communication efficiency by businesses has opened up a huge opportunity for industry players. This led to the development and use of advanced conferencing services and solutions, such as webcasts and telepresence. The following are some of the most prominent players in the global market for video conferencing:

• Avaya, Inc.

• Cisco Systems, Inc.

• Huawei Technologies Co., Ltd.

• Logitech International S.A.

• Microsoft Corporation

• Polycom Inc.

• Zoom Video Communications, Inc.

Up Market Research published a new report titled “Video Conferencing Market research report which is segmented by Component (Software, Service, Hardware), By Players/Companies Cisco Systems Inc, Huawei Technologies Co Ltd, Avaya Inc, Polycom Inc, Zoom Video Communications Inc, Microsoft Corporation, Logitech International SA”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.

Report Scope

The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.

Global Video Conferencing Market Report Segments:

The market is segmented by Component (Software, Service, Hardware).

Video Conferencing Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.

Key Benefits for Industry Participants & Stakeholders:

• Industry drivers, restraints, and opportunities covered in the study
• Neutral perspective on the market performance
• Recent industry trends and developments
• Competitive landscape & strategies of key players
• Potential & niche segments and regions exhibiting promising growth covered
• Historical, current, and projected market size, in terms of value
• In-depth analysis of the Video Conferencing Market

Overview of the regional outlook of the Video Conferencing Market:

Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.

Highlights of The Video Conferencing Market Report:

1. The market structure and projections for the coming years.
2. Drivers, restraints, opportunities, and current trends of Video Conferencing Market.
3. Historical data and forecast.
4. Estimations for the forecast period 2028.
5. Developments and trends in the market.

                1. Software

                2. Service

                3. Hardware

7. Market scenario by region, sub-region, and country.
8. Market share of the market players, company profiles, product specifications, SWOT analysis, and competitive landscape.
9. Analysis regarding upstream raw materials, downstream demand, and current market dynamics.
10. Government Policies, Macro & Micro economic factors are also included in the report.

We have studied the Video Conferencing Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.

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• Correctly Positioning New Products
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Reasons to Purchase the Video Conferencing Market Report:

• The report includes a plethora of information such as market dynamics scenario and opportunities during the forecast period
• Segments and sub-segments include quantitative, qualitative, value (USD Million,) and volume (Units Million) data.
• Regional, sub-regional, and country level data includes the demand and supply forces along with their influence on the market.
• The competitive landscape comprises share of key players, new developments, and strategies in the last three years.
• Comprehensive companies offering products, relevant financial information, recent developments, SWOT analysis, and strategies by these players.