Webcam 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, 2021 - 2028

Report Overview

The global webcam market size was valued at USD 6.85 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 12.9% from 2021 to 2028. The growing demand for real-time monitoring devices in residential locations, commercial and logistics security, and video conferencing is expected to drive market growth over the forecast period. Webcams are also seeing significant demand among temporary surveillance appliance manufacturers to record anti-social behavior, vandalism, fly-tipping, and detect criminals misusing public property. Webcams are video cameras used to capture real-time images or videos in the form of analog or digital signals. Present-day products are technologically advanced and they offer better streaming quality, resolution, frame rate, built-in microphones, and noise cancellation, among others. Owing to the vast advancements, webcams are being increasingly deployed in numerous applications including video conferencing, live streaming, and real-time monitoring.

The industry has evolved due to the rapid innovations and the integration of new technologies into product offerings to cater to the extensive customer base. From QuickCam, the first commercial webcam launched by Connectix in 1994, which could capture a 320*240-pixel resolution with a grayscale depth of 256 shades at 15 frames per second, webcams have come a long way.

The rising deployment of monitoring devices by federal bodies as a part of their digitalization initiatives is also anticipated to contribute to the market growth during the forecast period. Several governments worldwide are incorporating surveillance systems to safeguard critical infrastructure and public places. Furthermore, the market has witnessed a notable rise in security and surveillance applications in residential locations, such as household security and outdoor safety in smart infrastructure. Webcams are also deployed in live events and sectors such as corporate healthcare for remote monitoring. In the healthcare sector, webcams are primarily used for remote patient monitoring for communication via store-and-forward and real-time methods for telehealth operators.

However, the ubiquity of internet-connected devices has increased the vulnerability of digital networks to cyberattacks, thereby causing security threats. As webcams work in line with computers and internet connections, the risk related to the privacy and security of data uploaded via the internet network is high. Hence, governments globally are focusing on imposing stringent regulations regarding the safety and security of sensitive information. The state government of California, U.S., set a 'Security of Connected Devices' bill designed to protect consumer information processed through the Internet on Things (IoT) devices from destruction, unauthorized access, use, or disclosure.

The COVID-19 pandemic has paved the way for a remote working culture. The increased demand for webcams to accommodate remote meetings, coupled with temporary production stoppages and factory shutdowns, decreased the availability of webcams on e-commerce websites, resulting in shortages during the initial months of 2020. However, market participants have nominally restarted their manufacturing plants to cope with the economic loss suffered. The rising adoption of webcams for telehealth monitoring in an attempt to virtually treat, diagnose, and minimize the risk of coronavirus transmission in hospitals premises has also created unprecedented demand for web cameras during the pandemic.

Product Insights

The USB segment dominated with a revenue share of above 50.0% in 2020. Wired webcams are less prone to overheating due to more prominent cases which permit heat scattering. The compatibility and portability offered by USB webcams further contribute to the promising growth prospects of the USB segment. Several webcams can be attached to a USB hub to extend their distance from the computer and capture sizeable groups during video conferencing. The advanced USB webcams in the market offer better noise reduction and a range of other video effects, including background visual effects and automatic balancing.

The wireless segment is expected to benefit from the ability of these products to remotely connect to a device using Bluetooth or Wi-Fi technology. The rising demand for home security and surveillance solutions has compelled consumers to use wireless webcams. These devices are connected to the home Wi-Fi or broadband to provide surveillance by sending live video streams on smartphones or tablets. Modern wireless webcams often feature advanced solutions such as low light saturation, uneven light correction, and reduction in background video noise. However, technical failures arising from Bluetooth compatibility issues during meetings could deviate consumers toward wired products for seamless video streaming or conferencing.

Technology Insights

In terms of revenue, the digital segment is estimated to account for the highest CAGR of around 15.0% over the forecast period. Better image quality, more video coverage area, wireless connectivity features, and built-in encryption for cyber-security are some of the key factors contributing to the promising growth prospects of the digital webcam segment. Recent developments in this segment, including image stabilization and auto-framing, which reduce the blurring associated with camera shake during live streaming, could also work favorably for the segment. For instance, in February 2020, Logitech launched its digital webcam, StreamCam, which includes video streaming at an impressive frame rate of 60 fps and a resolution of 1080p.

On the contrary, analog webcams are more popular than their digital counterparts owing to their affordable prices. Analog cameras offer a low video resolution of 704x480 pixels, with video quality further deteriorating while zooming the cameras. Analog products record images and signals on a Digital Video Recorder (DVR) using a coaxial cable. However, the analog technology is limited to a much-confined field of sight, and therefore, more than one webcam is required to capture the full view, especially for surveillance activities.

Distribution Channel Insights

The brick and mortar segment dominated the webcam market in 2020 with a revenue share of over 85%. Consumers prefer to buy webcams at brick and mortar stores as they can be physically examined and the tangibility leads to faster purchasing decisions. Consumers can assess the features live at brick and mortar stores, such as video quality, sound recording, zoom-in feature, and video coverage area, before making a purchase.

However, the buying preference of the target audience is rapidly shifting toward e-commerce shopping due to benefits like heavy discounts, availability of a variety of products, and faster delivery services. Easy product exchanges or returns are also attracting consumers to e-commerce platforms for purchasing webcams. Moreover, the availability of multiple payment options and the change in consumer behavior concerning time spent on shopping, changing mindset of consumers, and increasing disposable incomes are driving the growth of the e-commerce segment. An increasing number of Original Equipment Manufacturers (OEMs) are collaborating with e-commerce portals to sell their products online to end-users and increase their brand visibility.

End-use Insights

In terms of revenue, the security and surveillance segment is projected to register the highest CAGR of close to 15.0% during the forecast period. The growing use of webcams in commercial areas such as enterprises, retail stores, restaurants, and hotels has increased the market share of the security and surveillance segment. These areas deploy webcams for real-time surveillance of inventories, IT-server rooms, and cash-counters for offering protection from data theft, vandalism, and intrusion attempts.

The visual marketing segment is also expected to witness significant growth throughout the forecast period. The rising popularity of ephemeral visual content across social media platforms is encouraging brands to focus on visual marketing to target millennials. The rising adoption of webcams equipped with features such as better video quality, high video frame rate, and video stabilization is expected to drive the segment growth over the forecast period. Owing to the rapid consumer transition to digital purchases through e-commerce websites amid the COVID-19 pandemic, retailers are utilizing the webcams for tracking customer’s activities, thereby creating enormous opportunities for the market over the forecast period.

Regional Insights

North America dominated the market in 2020 with a revenue share of over 35.0%. High technology adoption rate and awareness regarding security and surveillance are anticipated to contribute to the future growth of the regional market. Furthermore, some of the major webcam manufacturers, including Razer Inc.; Logitech; Cisco Systems, Inc.; and Microsoft, are based in the U.S. According to the ‘Video Voyeurism’ law mandated by the state of Florida, U.S., webcam installation is strictly prohibited in areas that expect reasonable privacy, such as locker rooms and restrooms.

The Asia Pacific market is expected to witness the fastest growth in terms of revenue as well as volume from 2021 to 2028. This can be attributed to the presence of a large number of electronic product manufacturers in countries such as China, South Korea, and Japan. The availability of raw materials at competitive prices reduces the overall cost of the finished product. Furthermore, webcams are being heavily deployed for traffic monitoring in countries such as China and India as a part of their digitization practices. However, the rising use of webcams has compelled governments in the region to update privacy laws concerning user data. For instance, according to the updated data protection laws in China, data handlers, such as smartphone application developers, are required to get consent from the customer and give them the right to revoke that consent.

Key Companies and Market Share Insights

Key players in the market include Logitech; Microsoft; Canon, Inc.; Cisco Systems, Inc.; Sony Corporation; and Razer, Inc. These companies are collaborating with their counterparts to leverage their product portfolios and attain a larger customer base. For instance, in 2019, D-Link Corporation partnered with Microsoft Corporation, one of the leading software manufacturers. The alliance allowed D-Link Corporation to deploy Microsoft’s Vision AI software to enable features such as object and facial recognition in its security and surveillance webcams.

Furthermore, prominent webcam manufacturers are highly emphasizing the integration of their products with upgraded technologies to enable high-resolution video streaming, state-of-the-art microphones, and reduced buffering caused due to external environment interferences. The technological advancements are also based on the type and potential of electronic components used, such as sensors, integrated circuits, USB cables, lenses, and microscopic light detectors. For instance, 360 Vision Technology Ltd.’s range of ruggedized PTZ Cameras, Predator, provides high-definition video to analytic systems and offers intensified thermal technology for use. This enables the product to offer fence detection, border control, and perimeter protection systems. Some of the prominent players operating in the global webcam market are:

• Logitech

• Microsoft

• Canon, Inc.

• Cisco Systems, Inc.

• Sony Corporation

• Razer, Inc.

Webcam Market Report Scope

Segments Covered in the Report

This report forecasts volume and revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For this study, Grand View Research has segmented the global webcam market report based on product, technology, distribution channel, end use, and region:

• Product Outlook (Volume, Million Units; Revenue, USD Billion, 2018 - 2028)

  • USB

  • Wireless

• Technology Outlook (Volume, Million Units; Revenue, USD Billion, 2018 - 2028)

  • Analog

  • Digital

• Distribution Channel Outlook (Volume, Million Units; Revenue, USD Billion, 2018 - 2028)

  • Brick & Mortar

  • E-commerce

• End-use Outlook (Volume, Million Units; Revenue, USD Billion, 2018 - 2028)

  • Security & surveillance

  • Entertainment

  • Video conferencing

  • Live events

  • Visual marketing

  • Others

• Regional Outlook (Volume, Million Units; Revenue, USD Billion, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa