Webcams Market Size, Share & Trends Analysis Report By Product (USB, Wireless), By Technology (Analog, Digital), By Distribution Channel, By End Use, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global webcams market size was valued at USD 6.15 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 8.2% from 2020 to 2027. Increasing demand for real-time monitoring devices and rising adoption of unmanned aerial vehicles (UAVs) owing to growing security and surveillance concerns are expected to drive the demand for webcams during the forecast period. Furthermore, the growing adoption of webcams for video conferencing, visual marketing, live events, and entertainment is propelling the industry growth. Web cameras have emerged as a valuable business communication tool in the corporate world as it helps to transmit audio and video across a communication network enabling participants to interact synchronously and have a real-time brainstorming session despite geographic barriers.

The device is poised to witness an increase in sales during the forecast period owing to rising popularity of virtual workplace communication among professionals. Furthermore, business proprietors can assimilate video feeds into a security system, thus giving them the ability to sight any part of their business in real-time from a computer or smartphone.

Globally, most of the countries affected by COVID-19 have announced lockdown to avoid further spread of the pandemic. The governments of Russia, Australia, and the U.K. have imposed penalties for violating quarantine protocols. Enterprises have adopted Work from Home (WFH) policies to ensure the safety of the employees as well as continuity of their business. With these stay-at-home measures, usage of video conferencing for business and client meetings has increased, which is expected to drive the demand for webcams in future.

For instance, Zoom Video Communications, a U.S.-based remote conferencing service provider with primary customer base of video conferencing desk workers, announced a rise in over 6,00,000 app downloads during this period. Upsurge in current users opting for video conferencing is expected to continue and positively impact the market growth over the forecast period.

Furthermore, increasing adoption of these cameras among telehealth service providers for video consultation and remote patient monitoring has expanded its scope in the healthcare sector. For instance, Secure Telehealth, a healthcare service provider, deployed Logitech B910 webcams mounted with Personal Computers (PCs) across its organization to connect with patients, thus expanding access to high-quality healthcare services. Moreover, these cameras allow communication in real-time or store-and-forward method for telehealth, which is further propelling industry growth.

However, various issues encountered while using webcams, such as inadequate bandwidth and network connectivity, which results in distorted audio, video freezing, and difficulties in screen-sharing, are restraining the industry growth. A minimum internet speed of 128 Mbps is required to avoid video distortion. Moreover, poor internet connection in certain remote regions is expected to limit the growth of the market during the forecast period.

Product Insights

Based on product, the market has been bifurcated into USB and wireless webcams. In terms of volume, USB webcams dominated the market with a share of 61.03% in 2019. This is attributed to its compatibility with computers using multiple platforms, such as Mac, Linux, and Windows. Moreover, these devices are less prone to overheating as they comprise larger casings that allow heat to disband rapidly. With the increase in broadband and internet connectivity worldwide, the wireless segment is expected to witness significant growth during the forecast period. Additionally, wireless web cameras can be placed away from the computer screen, hence providing comfort to the users in moving their cameras for instant use. For instance, according to the IEEE 802.11g specification, Wi-Fi webcam can be site up to 30 meters away from the computer.

The wireless segment is anticipated to expand at the highest CAGR of 9.3% in terms of revenue during the forecast period. Wireless devices are versatile in their application, compatible with various computer systems, and have high resolution. They are incorporated with electronic chip sensors that convert light into pixels and the camera transmits this data via Ethernet, Wi-Fi or Bluetooth. These are capable of taking pictures as well as high-definition videos as there is no interference of wired infrastructure, no wear and tear of the wire, and no intentional wire puncture by hackers. Moreover, wireless technology is beneficial in conditions, where it is challenging to place cables, such as surveillance of the commercial premises.

End-Use Insights

Based on end use, the global industry has been categorized into security and surveillance, videoconference, entertainment, visual marketing, live events, and others. The others segment include tourism, healthcare, online education, and retail shopping centers. In terms of revenue, live events dominated the industry with a share of 26.8% in 2019. This substantial share is attributed to the increasing demand for webcams in live events for real time streaming and security purpose.

The security and surveillance segment is expected to expand at the highest CAGR of 16.1% in terms of volume during the forecast period. The growth of this segment is attributed to increasing use of cameras in household and commercial spaces, such as retail stores and malls, enterprise, and hospitality centers. Commercial areas are more prone to security risks, such as theft, vandalism, and inventory loss, which can be controlled by real-time monitoring and surveillance. Thus, the segment holds significant sales opportunities for the market during the forecast period.

Increasing usage of webcams in visual marketing that can generate more engagement between a brand and its clients is expected to propel growth during the forecast period. Visual marketing enables connecting to consumers using webcam through images, videos, graphics, infographics, logos, and signs and is often more appealing to the customers. Moreover, with the emergence of webcam-based eye-tracking technology, it is easy to analyze how users are browsing the website and their overall webpage engagement.

Technology Insights

Based on technology, the global webcams industry has been classified into analog and digital. Analog webcams are projected to account for over 60.0% share of the total volume by 2027. Analog devices are differentiated from their digital counterparts based on the procedure for recording and processing images. The maximum resolution limit of these cameras is 640×480 pixels. The image is recorded by the camera and the signal is sent to the Digital Video Recorder (DVR). The DVR then converts the analog signal into digital and stores in the memory drive or forwards it on the internet as per the user’s requirement. Moreover, videos or images recorded through analog cameras are comparatively smaller in size and consume less bandwidth as they are transmitted to DVR through coaxial cable and not through LAN.

Digital webcams are expected to expand at the fastest CAGR of 9.9% based on revenue over the forecast period. Digital models are highly preferred owing to the better image quality, more coverage area, and fewer cables required for system setup. Moreover, the digital cameras have an edge over the analog model in terms of data security as the digital model can provide encryption for the data, which makes transmission safe.

Digital webcams capture images with the help of sensors, such as Charge-Coupled Device (CCD) or Complementary Metal-Oxide-Semiconductor (CMOS) image sensors. These sensors and processors convert the received signal into a digital string and send it to the computer, wherein it can be stored or shared on the internet directly. Moreover, these cameras have a zoom-in feature, where one can typically zoom to 1,000 feet of distance, which can be advantageous, especially for security and surveillance purposes as well as in case of live events.

Distribution Channel Insights

Based on distribution channel, the global market has been categorized into brick & mortar and e-commerce. The brick and mortar sales channel dominated the market with revenue size of USD 5.40 billion in 2019 and is expected to maintain its lead over the forecast period. As compared to e-commerce, the brick and mortar channel is conventional and more preferred as consumers can touch and feel products before purchasing. Moreover, a large number of users prefer buying products that are in front of them and can be purchased immediately when required. The devices can also be physically tested and examined before buying, which makes physical purchase of such electronics a popular choice.

E-commerce is expected to expand at the highest CAGR of 11.9% in terms of revenue during the forecast period. Over recent years, e-commerce has witnessed sporadic growth worldwide owing to the hassle-free exchange and replacement policies and a much wider product range to choose from in case of online shopping.

Online stores do not need intermediate distributors and hence enjoy more profit compared to brick and mortar stores. With fast deliveries and convenient exchange and return policies, online stores have witnessed considerable demand from people and have become the preferred mode of purchase, especially for tier 1 cities. A complete range of webcams with multiple options to choose from in terms of brands, features, portability, and price makes online purchase of these cameras a good choice.

Regional Insights

In 2019, North America accounted for the largest revenue share of over 35.0%, and the region is expected to maintain its lead over the forecast period. Increasing awareness about security measures in public and private places acts as a major factor driving the market in North America. Furthermore, increasing demand for real-time monitoring and streaming of live events is expected to fuel industry growth in the region.

Europe is expected to witness significant growth over the forecast period owing to growing focus on security, especially in case of Internet of Things (IoT) devices. For instance, in 2019, the U.K. government-imposed regulations on the manufacturing of IoT devices, such as webcams, smart thermostats, and other appliances, to embed a unique password for each device rather than a default password as hackers could easily tamper and misuse the connected devices using default passwords. Similar provisions were also passed in California, U.S., in October 2018.

Asia Pacific is expected to exhibit the fastest CAGR of 9.1% in terms of revenue over the forecast period due to growing need for these devices for video conferencing, online education, and the healthcare sector. Besides, countries such as India and China are working towards improving infrastructure and city surveillance, which is expected to provide lucrative opportunities for this industry during the forecast period.

Key Companies & Market Share Insights

Major global players were identified across different regions, along with their product offerings, distribution channels, and geographical footprint. Furthermore, industry participants are entering into mergers and acquisitions and strategic partnerships intending to expand their business presence and sustain in an extremely competitive business environment. Well-established global players dominate the webcams market with a huge customer base worldwide. These companies are significantly investing in R&D activities to integrate new technologies and develop products with distinguishing features to gain a competitive edge in business. For instance, Logitech announced the launch of a 4K Pro magnetic webcam, explicitly designed for the Mac Pro with RightLight 3 technology for better lighting effects. In addition, key industry players are emphasizing on developing custom high-tech webcams with advanced features to cater to the demand from varied end-use industries. For instance, Logitech launched a new BRIO Webcam with 5X Zoom, 4K Video Support, and 90-degree, 78-degree, and 65-degree, Field Of View (FOV) options, specially designed for home office users, businesses, and YouTubers. Some of the prominent players in the webcams market include:

• Canon, Inc.

• 10Moon

• Cisco Systems, Inc.

• Koninklijke Philips N.V.

• Lenovo

• Microsoft

• Logitech

• D-Link Systems, Inc.

• Razer Inc.

• Xiaomi

• Sony Corporation

Webcams Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis on the latest industry trends and opportunities in each of the sub-segments from 2020 to 2027. For the purpose of this study, Grand View Research has segmented the global webcams market report based on product, technology, distribution channel, end use, and region:

• Product Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • USB

  • Wireless

• Technology Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Analog

  • Digital

• Distribution Channel Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Brick & Mortar

  • E-commerce

• End-Use Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • Security & Surveillance

  • Entertainment

  • Videoconference

  • Live Events

  • Visual Marketing

  • Others

• Regional Outlook (Volume, Million Units; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • Germany

    • The U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa