Video Conferencing Market Size, Share & Trends Report

Video Conferencing Market Size, Share & Trends Analysis Report By Deployment, By Component (Hardware, Software, Service), By End Use (Corporate, Healthcare), By Region, And Segment Forecasts, 2019 - 2025

  • Published Date: Apr, 2019
  • Base Year for Estimate: 2017
  • Report ID: GVR-3-68038-081-1
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 144

Industry Insights

The global video conferencing market size was valued at USD 3.4 billion in 2017 and is expected expand at a CAGR of 9.2% from 2018 to 2025. Video conferencing refers to the process of conducting meetings using telecommunication technologies and involves a real-time, two-way transmission of audio and video content. This method of communication aids companies in faster decision-making and eliminates travel time and associated costs. It also helps to reduce operational and management costs, subsequently improving productivity.

Rapidly increasing demand for video communication owing to globalization of businesses, geographically scattered business operations, and remote workforce management is a major driver in the market. As certain fields such as telemedicine and online education are becoming increasingly popular in the emerging economies of Asia Pacific, demand for these solutions in varied applications is projected to rise significantly.

U.K. video conferencing market

Various companies are using video conferencing as a technological tool to enhance interaction and collaboration among geographically dispersed teams. They are also increasingly focusing on reducing communication costs, which has created a major opportunity for industry players. This has subsequently led to the development and deployment of advanced solutions and services in the field.

The market is expected to witness significant growth owing to increasing adoption of cloud-based communication solutions. Key market players are also focusing on continual product innovation, such as cloud-based and mobile video conferencing, to increase adoption among small and medium enterprises (SMEs).

However, high initial investments in the purchase and deployment of market solutions, along with concerns pertaining to the privacy and security of information, are anticipated to be the major challenges to the growth of the market. High costs of deploying video conferencing solutions can be attributed to the need for high-quality devices, data security software solutions for the secure transmission of data, and training of employees.

Component Insights

The hardware segment dominated the global market in 2017 and is expected to maintain its lead over the forecast period. The growth of the segment can be attributed to increasing penetration and adoption of video conferencing solutions by SMEs and startups. Demand for the hardware segment is high in Asia Pacific and Latin America, which, in turn, is expected to propel demand for industry solutions over the forecast period.

The service segment is also expected to witness significant growth over the forecast period owing to rise in the demand for project consulting, employee training, and deployment of new solutions. These services have enabled small-scale and medium-scale companies to rapidly expand their geographical operations by establishing a centralized communication platform with enhanced capabilities to enable interaction between teams situated in multiple locations across cities and countries.

Deployment Insights

Based on deployment, the market has been segmented into on-premise and cloud. While the on-premise segment accounted for the largest market share in 2017, the cloud segment is expected to expand at the highest CAGR of 10.8% over the forecast period.

Cloud-based solutions offer increased convenience to end users by enabling easy access to the video conferencing platform through multiple channels, such as mobiles and laptops. Emerging trends such as Bring Your Own Device (BYOD) and mobile workforce have resulted in widespread adoption of cloud-based services.

Growing popularity and adoption of cloud-based solutions have led to the development of better encrypted and password-protected solutions. Furthermore, increase in usage of cloud-based solutions and incorporation of virtual reality (VR) in video conferencing techniques are further driving demand for these solutions.

End-use Insights

On the basis of end use, the market is segmented into corporate, education, healthcare, government and defense, BFSI, and media and entertainment. The corporate segment dominated the global market in 2017 with a market share of approximately 27.0% and the trend is expected to continue over the forecast period.

Video conferencing is an effective communication tool and helps in reducing travel and operational costs for small and large-scale enterprises. In corporate companies, this technology is mainly used for cost-effective, real-time, and long-distance communication and for augmenting the productivity of various teams based in multiple locations.

North America video conferencing market

Growing need for immediate medical assistance to patients located in remote locations is fueling the adoption of video conferencing solutions in the healthcare sector. Other end-use verticals such as education, government and defense, and media and entertainment are also expected to witness considerable growth over the forecast period owing to increasing technology adoption and awareness among SMEs.

Regional Insights

North America is leading the market owing to presence of well-established businesses and high technology adoption. As the markets in U.S. and Europe are relatively mature in terms of adoption of video conferencing systems, they are expected to witness demand either for upgradation or replacement of systems. Companies in North America are early adopters of emerging technologies and hence, the region is expected to remain the largest market in terms of revenue over the forecast period.

Asia Pacific is expected to emerge as the fastest-growing region with a CAGR of 10.5% over the forecast period. Increasing number of technology and service-based start-ups in India and China is expected to propel the market growth. Strong presence of business and knowledge process outsourcing companies in the region is also expected to be a major driver in the industry.

Video Conferencing Market Share Insights

Key industry players include Adobe Systems Inc.; Array Telepresence Inc.; Avaya Inc.; Cisco Systems, Inc.; Huawei Technologies Co., Ltd.; Logitech International S.A.; Microsoft Corporation; Polycom Inc.; Vidyo Inc.; and West Corporation.

Players are focusing on product innovation, development of secure data transmission solutions, and enhanced integration capabilities to meet customer expectations. Currently, the industry is in the growth phase and leading industry players are concentrating on the acquisition of local companies in order to expand their product portfolio, customer base, and geographical presence.

Companies such as Adobe Systems Inc.; Cisco Systems, Inc.; Logitech International S.A.; and Microsoft Corporation have a significant market presence across the globe owing to availability of a strong R&D division, high-tech production facilities, and a skilled workforce. These companies mainly focus on product innovation and have a well-established global network of partners in U.S., India, China, Brazil, and European countries.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018- 2025

Market representation

Revenue in USD Million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Latin America, and MEA

Country scope

U.S., Canada, U.K., Germany, India, Japan, China, and Brazil

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

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Segments Covered in the Report:

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global video conferencing market report on the basis of component, deployment, end use, and region:

  • Component Outlook (Revenue, USD Million, 2014 - 2025)

    • Hardware

      • Camera

      • Microphone & Headphone

      • Others

    • Software

    • Service

      • Professional

      • Managed

  • Deployment Outlook (Revenue, USD Million, 2014 - 2025)

    • On-premise

    • Cloud

  • End-use Outlook (Revenue, USD Million, 2014 - 2025)

    • Corporate

    • Education

    • Healthcare

    • Government & Defense

    • BFSI

    • Media & Entertainment

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Brazil

    • Middle East & Africa (MEA)

Key questions answered by the report
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