Global Video Conferencing Market By Component (Hardware, and Software), By Deployment, By Enterprises Size, By Application (Consumer, and Enterprises), By End-User, By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2032.
- Published date: Oct. 2023
- Report ID: 41119
- Number of Pages: 227
- Format:
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Report Overview
The Global Video Conferencing Market size is expected to be worth around USD 21 billion by 2032 from USD 7.2 billion in 2022, growing at a CAGR of 11.8% during the forecast period 2023 to 2032.
Video-telephony refers to the two-way, multipoint reception and transmission of audio or video signals by people at different locations for real-time communication. This is also called video conferencing or video teleconferencing. A videophone is a telephone that has both a video camera (and a display) and allows for voice and visual communication simultaneously. This technology can be used to facilitate group meetings or organizations, rather than individual meetings.
Video conferencing allows people in different areas to meet face-to-face without the need to travel. This technology is particularly useful for customers moving between cities and countries as it allows them to save time, and money, avoid travel hassles and reduce the cost of business travel. Video conferencing makes it possible to conduct routine meetings, negotiate business deals, and interview candidates.
Note: Actual Numbers Might Vary In The Final Report
Key Takeaways
- The global Video Conferencing Systems Market is projected to grow at a CAGR of 11.8% between 2023 and 2032.
- The market size for Video Conferencing Systems is expected to reach USD 21 billion by 2032, indicating significant growth from USD 7.2 billion in 2022.
- The hardware segment, including cameras and microphones, holds the major market share in the Video Conferencing Systems Market.
- On-premise deployment currently leads the market, but cloud-based solutions are gaining popularity, especially among small and medium-sized enterprises.
- Large enterprises dominate the global Video Conferencing Market, followed by small and medium-sized enterprises.
- The corporate sector is the major end-user of video conferencing systems, followed by education, healthcare, defense, and entertainment sectors.
- North America currently holds the largest share in the Video Conferencing Market, followed by the Asia Pacific region, which is expected to experience a CAGR exceeding 15.0% by 2032.
- Key market players in the Video Conferencing Systems Market include Adobe Systems Incorporated, Cisco Systems Inc, Logitech International S.A, Microsoft Corporation, and others.
- Software innovations and the integration of AI in video conferencing are creating numerous opportunities in the market, with companies focusing on maximizing value-grab opportunities and enhancing user experience.
Driving Factors
Growing Popularity of video Conferencing Across the Globe is Driving the Global Video Conferencing Market.
Globally, the market for video conferencing is growing at an impressive pace. Video conferencing technology is now a viable option for strengthening your brand and hiring exceptional professionals, due to the increasing preference for video conferencing interviews during the recruitment process. Business organizations can gain insight into the details, such as the best meeting length and the optimal number of participants.
Organizations can also use Conferencing to help them find and analyze better meeting content faster and more efficiently. Video conferencing has become a standard practice. It allows for a comparative analysis of meetings within an organization. This in turn strengthens the demand for a video conference in emerging and developed markets.
Cloud technology is gaining popularity and enterprises are compelled to replace traditional business management systems with cloud-based solutions. Global companies look forward to integrating cloud video conferencing solutions and services and will play a crucial role in shaping the videoconferencing market dynamics over the forecast period.
Restraints Factors
Lack of Privacy and Data Security are Negatively Affecting the Video Conferencing Market.
A lack of communication tools can severely hinder employee productivity. Poor quality or background noise can cause employees to lose valuable time. Video streaming quality issues and interruptions can make it difficult for workers to communicate effectively, especially in the COVID-19 situation. Poor video quality and other interruptions during video conferencing can cause irritation in many people.
Businesses can be concerned about the security and privacy of video footage sent across multiple platforms. This could hinder the growth of the videoconferencing market. Due to the risks of data leakage, exploitation, and exploitation, corporations are also concerned about digital rights management (DRM) and copyright.
Data breaches were most common in the public, healthcare, banking, and manufacturing sectors. Businesses must reconsider their video conferencing strategy to address these constraints before they use these technologies. In the absence of appropriate policies and processes to manage video content, video conferencing can be slow to adopt. Providers must offer interoperable, simple-to-use enterprise-grade video communication systems with integrated security measures.
By Component Analysis
Hardware Segment Holds the Major Market Share.
The largest share of the global market was held by the hardware segment, out of all the components. The growing acceptance and development of endpoints such as smartphones, laptops and desktops with high-resolution speakers, microphones, and cameras can explain the market growth in the hardware segment. Cameras and microphones are two types of the hardware segment. Among them, the microphones/headphones category has grown significantly due to increased sales volume during the pandemic due to the widespread adoption of video conferencing technology for team communication.
The development of high-end devices, driven by continued technological breakthroughs in augmented reality (IoT), could boost the growth of this category. The market growth is also aided by the increasing adoption of the Internet of Things, which allows for the seamless integration of hardware with cloud-based solutions and other technologies such as facial recognition and artificial intelligence.
Due to the increasing integration of augmented reality with other key technologies, as well as cloud-based videoconferencing services such Adobe Connect, LoopUp and so forth, the service segment will likely grow at an effective pace over the forecast period. This is due to the potential to improve customer experience. The market growth for this segment would be further aided by a substantial increase in the mobility requirements of remote workers and workforce.
By Deployment Analysis
On-Premise Deployment Leads the Market with Majority Share.
In 2022, 48% of the market share was held by the on-premise segment. This is due in part to the growing popularity of on-premise deployment at major enterprises, as a response to growing concerns about data theft and effective maintenance of information security systems. The category is expected to grow modestly due to cloud-based solutions’ increasing popularity. As a result, businesses have started to migrate to the cloud their revenue-generating methods. Avaya, Inc., changed its revenue generation strategy, moving it from on-premise to cloud-based.
In the coming years, the cloud segment will grow rapidly. These solutions are convenient for end users as they allow them to access video conferencing services through various channels such as mobile devices and laptops. Service providers emphasize the use of a Software as a Service platform for video conferencing. This has attracted a large number of small- and medium-sized companies. The development of more secure and password-protected cloud services will likely fuel the segment’s growth.
The cloud deployment market is projected to grow at a rapid pace over the forecast timeframe. Cloud technology increases connectivity by allowing easy access to videoconferencing services through many platforms such as laptops and mobile devices. The Software as a Service platform (SaaS), which is increasingly popular among small and medium-sized companies, is also driving category growth. According to Amazon Web Services, Inc., Indian small and medium businesses will increase their cloud operations.
By Enterprises Size
Large Enterprises Dominate the Global Video Conferencing Market.
The largest market share was held by large enterprises. Because they are looking for reliable and secure solutions, large corporations are the most regular customers of videoconferencing services. Large companies prioritize corporate network performance and incorporate cutting-edge technology like SD-WAN. Service providers are working to update video conferencing systems with improved capabilities, such as centralized provisioning, business process integration, and service management.
In the next few years, small and medium enterprises (SMEs) will create opportunities for large players. Due to the COVID-19 pandemic, SMEs are becoming more aware of the importance of collaboration and conferencing. Many market leaders are using this category to gain a competitive edge. Plantronics, Inc., has updated the QDX6000, an SD videoconferencing system suitable for small and medium-sized meeting spaces, for the Asian market.
By Application
Enterprises Covers the Major Market Share in Global Video Conferencing Market.
Due to the higher demand for room-based hardware solutions that can be deployed in meeting rooms, the enterprise segment has captured a larger revenue share. Given the increase in product adoption and the possibility of collaboration between employees, the growth prospects for enterprise-based videoconferencing solutions were expected to be better before the pandemic.
The pandemic caused a surge in consumer-grade solutions sales, which led market players to add more features to their products to increase their customer base. Logitech, for example, launched the first TWS earphones in September 2021 to cater to the growing market of work-from-home workers. The TWS earphones are compatible with both smartphones and computers.
Note: Actual Numbers Might Vary In The Final Report
By End-Users Analysis
Corporate Segment Covers the Major Market Share in Video Conferencing Market.
By acquiring a revenue share, the corporate segment had been dominant in the market. This is due to growing consumer interest in cloud communication and collaboration solutions. Cloud-based platforms have been embraced by geographically dispersed teams to facilitate data sharing, collaboration, communication, and seamless data sharing. These platforms enable remote teams to improve productivity and streamline business processes.
In 2021, the government and defense sectors accounted for 6.0% of revenue. This segment is growing as the public sector adopts conferencing solutions to improve efficiency and productivity. These services enable government agencies to connect with more people which in turn helps in quicker decision-making. As government agencies emphasize cost control and seek to replace traditional telecom equipment with cloud-based solutions, they expect to see cloud-based solutions gain huge traction in this industry.
The technology-oriented nature of healthcare has been evident from the beginning. Therefore, video conferencing is becoming more popular. No matter how medical video conferencing is used, it can improve the quality and cost-effectiveness of patient care. This is a convenient service that patients with physical disabilities, such as those with mobility issues, can use. Patients with chronic and severe illnesses can have their healthcare providers provide 24/7 video support.
Video conferencing is a way for patients with chronic illnesses to be able to communicate easily and securely from their own homes. These factors are expected to drive the growth of healthcare segment in the global video conferencing market.
Key Market Segments
Based on Component
- Hardware
- Camera
- Microphone
- Other Components
- Software
- Services
- Professional Services
- Managed Services
Based on Deployment
- On-Premise
- Cloud
Based on Enterprises Size
- Large Enterprises
- Small and Medium Enterprises
Based on Application
- Consumer
- Enterprises
Based on End-User
- Corporate
- Education
- Healthcare
- Defense
- Entertainment
Growth Opportunity
Software Innovations and the Introduction of AI in the Video Conferencing Created Many Opportunities in the Market.
Software innovations are being used by companies in the video conferencing industry to maximize value-grab opportunities. GoToMeeting, a standalone web-based conferencing service offered by software company LogMeIn, Inc., offers mobile-friendly screen sharing and video conferencing. Software revenue is expected to grow exponentially in the video conference market.
Innovation in video conferencing has been made easier by mobile friendliness. Many companies are making efforts to provide settings that maximize image and call quality. Small businesses are increasingly turning to browser-based videoconferencing solutions. To attract users, these solutions can be augmented with add-ons such as meeting analysis and premium customer support. Browser-based conferencing solutions eliminate the need to download additional software.
Latest Trends
As a result of increasing customer use of mobile and online banking, there is a growing trend to deploy video banking solutions. This will likely boost the growth of video conferencing market trends. Video banking options can help customers save time and money. Video banking allows end-users to securely communicate with distant clients and co-workers, increasing operational efficiency. Lenders, financial advisors, customer service representatives, and other members of the banking and finance sector are increasingly using visual communication solutions. Key providers are creating new products to meet the growing demand for video services in the financial sector and banking.
With advancing technology, the Use of 5G network is driving the growth of video conferencing market. 5G networks offer a better internet experience, with speeds up to 1GBPS and latency as low as 10ms. They also provide a platform for AI-based and cloud-based video applications. There are many data-intensive applications that can be used both individually and in a business setting, including AR, VR, video apps and other types of AR and VR. IT, telecom, healthcare, auto, media and entertainment as well as BFSI and agricultural all require video conferencing.
These include high bandwidth, low power and ultra-low latency. The network must increase capacity by using additional spectrum. This would allow for widespread acceptance of 5G core technology to provide better mobile broadband services and boost the video conferencing market.
Regional Analysis
Major Share in the Video Conferencing Market is Held by North America Region.
North America was the dominant market for video conferencing, accounting for more than 37.5% of its revenue. North America will likely be among the first to adopt 5G technology. This will increase the use of videoconferencing solutions in the region. It is expected to become the largest market for video conferencing in the world during the forecast period. It is home to the largest number of companies and it is one of the first users of videoconferencing. Canada and the United States are likely to make a significant contribution to North American videoconferencing.
The main growth drivers for North America are large-scale investments made by companies in video conferencing outsourcing. Video conferencing and webcasting are popular in the region’s education sector. Market expansion is impeded by interoperability issues, complex video content and technology issues, and high prices for video conferencing equipment.
Note: Actual Numbers Might Vary In The Final Report
There is a potential for growth in the region through upgrades to existing equipment and subscriptions to cloud-based services. By providing reliable technological goods and services to clients, hardware suppliers are critical in supporting the growth of the videoconferencing industry. Software developers on the other side are constantly focused on updating current software with new features. This attracts many end-users.
Regional prosperity will be supported by a growing demand for high-quality internet access and video meetings. Market expansion will be driven by the presence of many large companies and the growing popularity of Bring Your Own Devices (BYOD), which has led to widespread use of headphones and cameras. Video conferencing market players are seeing an increase in demand for cloud-enabled video conferencing products as cloud technology improves.
With the adoption of new work methods across regional businesses, the Asia Pacific market for videoconferencing will see a CAGR exceeding 15.0% by 2032. Many companies were forced to adopt remote working as a result the COVID-19 pandemic. This encouraged the creation of high-quality internet infrastructure. The demand for accessories, collaboration tools and video conferencing equipment has increased dramatically in the region. The market will continue to grow due to the rapid development of mobile broadband technologies in countries like Japan and India.
Key Regions and Countries Covered in this Report:
- North America
- The US
- Canada
- Mexico
- Western Europe
- Germany
- France
- The UK
- Spain
- Italy
- Portugal
- Ireland
- Austria
- Switzerland
- Benelux
- Nordic
- Rest of Western Europe
- Eastern Europe
- Russia
- Poland
- The Czech Republic
- Greece
- Rest of Eastern Europe
- APAC
- China
- Japan
- South Korea
- India
- Australia & New Zealand
- Indonesia
- Malaysia
- Philippines
- Singapore
- Thailand
- Vietnam
- Rest of APAC
- Latin America
- Brazil
- Colombia
- Chile
- Argentina
- Costa Rica
- Rest of Latin America
- Middle East & Africa
- Algeria
- Egypt
- Israel
- Kuwait
- Nigeria
- Saudi Arabia
- South Africa
- Turkey
- United Arab Emirates
- Rest of MEA
Key Player Analysis
Companies were forced to restructure and reorient their business strategies after the global COVID-19 pandemic. To create a digital workplace that allows remote employees to work, they are investing heavily in cloud-based solutions. Google LLC, a well-known company for its video conferencing software, has expanded its product line with Series One, a meeting room hardware. The product includes a Next Hub Max to control the activities, with noise cancellation in 8 channel speakers and a webcam that can be used for video meetings.
To gain a strong foothold within the market, market players also focus on mergers and partnerships. Industry players have significant opportunities due to the increasing focus on communication costs by businesses. They are therefore more inclined to develop advanced conferencing solutions such as webcasts and telepresence.
Top Key Players in Video Conferencing Systems Market
- Adobe Systems Incorporated.
- Atlassian Corporation Plc.
- Cisco Systems, Inc.
- Fuze, Inc.
- Huawei Technologies Co., Ltd.
- JOYCE CR, S.R.O.
- Logitech International S.A.
- LogMeIn, Inc.
- Microsoft Corporation
- Orange Business Services
- Polycom, Inc.
- Vidyo, Inc.
- Visual Systems Group, Inc. (VSGi)
- West Corporation
- ZTE Corporation.
- Other Key Players.
Recent Developments
- In March 2022, Cisco Systems, Inc. joined forces with Ford to integrate Webex. The partnership will allow the company to turn electric vehicles into next-generation office spaces. Webex will also function in audio mode when the vehicle is moving, and all features are available when the vehicle is stopped, including visual conferencing.
- In September 2021, Zoom Video Communications, Inc. partnered with Amazon Web Services Marketplace (AWS Marketplace) to offer video conferencing solutions for state, federal, local government clients.
Report Scope
Report Features Description Market Value (2022) US$ 7.2 Bn Forecast Revenue (2032) US$ 21 Bn CAGR (2023-2032) 11.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component – Hardware(Camera, Microphone, and Other Components) Services(Professional Services, and Managed Services), and Software; By Deployment – On-Premise, and Cloud; By Enterprises Size – Small and Medium Enterprises, and Large Enterprises; By Application – Consumer, and Enterprises; By End-User – Corporate, Education, Healthcare, Defense, and Entertainment. Regional Analysis North America – The US, Canada, & Mexico; Western Europe – Germany, France, The UK, Spain, Italy, Portugal, Ireland, Austria, Switzerland, Benelux, Nordic, & Rest of Western Europe; Eastern Europe – Russia, Poland, The Czech Republic, Greece, & Rest of Eastern Europe; APAC – China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Philippines, Singapore, Thailand, Vietnam, & Rest of APAC; Latin America – Brazil, Colombia, Chile, Argentina, Costa Rica, & Rest of Latin America; Middle East & Africa – Algeria, Egypt, Israel, Kuwait, Nigeria, Saudi Arabia, South Africa, Turkey, United Arab Emirates, & Rest of MEA Competitive Landscape Adobe Systems Incorporated.,Atlassian Corporation Plc, Cisco Systems In, Fuze Inc, Huawei Technologies Co. Ltd, JOYCE CR S.R.O, Logitech International S.A, LogMeIn Inc, Microsoft Corporation, Orange Business Services, Polycom Inc, Vidyo Inc, Visual Systems Group Inc(VSGi), West Corporation. ZTE Corporation, and Other Key Players. Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three license to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the projected CAGR at which the Video Conferencing Market is expected to grow at?The Video Conferencing Market is expected to grow at a CAGR of 11.8% (2023-2032).
What is the size of the Video Conferencing Market in 2023?The Video Conferencing Market size is USD 7.2 billion in 2023.
Which region is more appealing for vendors employed in the Video Conferencing Market?North America was the dominant market for video conferencing, accounting for more than 37.5% of its revenue.
Name the key business areas for the Video Conferencing Market.The US, Canada, China, India, Brazil, South Africa, Singapore, Indonesia, Portugal, etc., are leading key areas of operation for the Video Conferencing Market.
List the segments encompassed in this report on the Video Conferencing Market?Market.US has segmented the Video Conferencing Market by geography (North America, Europe, APAC, South America, And Middle East and South Africa). The market has been segmented by Component Hardware and Software. by Deployment On-Premise and Cloud. by Enterprises Size Large Enterprises and Small and Medium Enterprises. by Application Consumer and Enterprises. by End-User Corporate, Education, Healthcare, Defense, and Entertainment.
Video Conferencing Systems MarketPublished date: Oct. 2023add_shopping_cartBuy Now get_appDownload Sample - Adobe Systems Incorporated.
- Atlassian Corporation Plc.
- Cisco Systems, Inc.
- Fuze, Inc.
- Huawei Technologies Co., Ltd.
- JOYCE CR, S.R.O.
- Logitech International S.A.
- LogMeIn, Inc.
- Microsoft Corporation Company Profile
- Orange Business Services
- Polycom, Inc.
- Vidyo, Inc.
- Visual Systems Group, Inc. (VSGi)
- West Corporation
- ZTE Corporation.
- Other Key Players.
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