Summary
Major players in the video conferencing market are Cisco Systems Inc, Polycom, Adobe Systems, Microsoft Corporation, Vidyo Inc, Zoom Video Communication Inc, Logitech International S.A., Panasonic Corporation, ZTE Corporation, and Huawei Technologies Co. Ltd.
The global video conferencing market is expected to decline from $7.87 billion in 2020 to $6.03 billion in 2021 at a compound annual growth rate (CAGR) of -23.35%. The change in growth trend is mainly due to the companies stabilizing their output after catering to the demand that grew exponentially during the COVID-19 pandemic in 2020. The market is expected to reach $8.67 billion in 2025 at a CAGR of 9.5%.
The video conferencing market consists of sales of video conferencing software and its related services by entities (organizations, sole traders, and partnerships) that enable users in different locations to conduct face-to-face meetings without the necessity to move to one place together.Video conferencing increases performance, saves time, minimizes travel costs, and facilitates collaboration.
Video conferencing allows the power to encourage all those benefits without the necessity for constant travel for face-to-face communication.
The video conferencing market covered in this report is segmented by conference type into telepresence, integrated, desktop, service-based video conferencing system; by deployment into cloud, on-premises; by enterprise size into small and medium enterprises, large enterprises; by end-use into corporate, education, BFSI, media & entertainment, government & defense, others.
North America was the largest region in the video conferencing market in 2020. The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
High costs associated with setting up video conferencing is predicted to limit the growth of the video conferencing market.For small-sized companies or enterprises, setting up video conferencing in the corporate sector may be a little costly.
For instance, a 10-way audio conference (PSTN) with participants in the UK is charged at a rate of $0.87 per minute ($0.087 per call participant), or $52.20 per hour. For just one recurring meeting, the same call runs weekly would cost $2,714.40 in annual usage fees. Advanced features and functionality have increased costs, subsequently, restricting the growth of the video conferencing market.
In September 2020, Dailpad, a US-based AI-powered cloud communication platform, acquired video conferencing company Highfive for an undisclosed amount.The acquisition is aimed to provide businesses with conference room solutions and bringing the ability to connect rooms, communicate with their meeting connector technology with other video services and support for legacy devices with their room connector.
Highfive, a US-based company engaged in combining cloud-based software with the company’s proprietary in-room video conferencing hardware.
The launch of 5G technology contributed to the growth of video conferencing market during the forecast period. 5G enhances video conferencing attributing to faster networks, higher frequency radio bands, and more reliable connections. The improved network speeds and bandwidth capacity can support top-quality calls in HD or even 3D without delay or other interruptions found in the busy 4G network. The development of 5G at reasonable rates has put remote work at the forefront of video conferencing. According to Ericsson’s network coverage report, 5G is expected to cover up to 65% of the world’s population by 2025. Increased network speed and capability with the launch of 5G technology to enable high-quality video conferences is projected to contribute to the growth of the video conferencing market.
Gamification in video meetings is a leading trend gaining popularity in the video conferencing market.Video conferencing companies introducing gamification for corporate end-users in their video meetings to improve employee performance and drive productivity.
Gamification includes components of game design, such as tasks, points, badges, and rewards in a non-game sense.Employers might split their workers into small groups and then using screen sharing and annotation functions, make them work on an activity remotely in a video conference.
Moreover, few companies in the media and entertainment market are introducing gamification in their video meetings to attract a greater number of users and improve user experience. For instance, in August 2018, Facebook introduced new AR games to Messenger video chats.
The countries covered in the market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
