According to MarketStudyReport Research “Global Video Conferencing Market Analysis, 2020”, the video conferencing market across the globe is forecast to grow at the CAGR of 9.50% during 2020-25. The major key factors contributing to the growth of the global video conferencing are the business globalization coupled with the growing need for workforce management from a remote location. Also, the benefits such as time and cost savings on traveling, improved productivity are some of the key factors for the growth in the deployment of video conferencing solutions.
Key players are launching new products, doing strategic alliances to gain a competitive advantage in the industry. For instance, Plantronics acquired Polycom in 2019, a hardware developer of video conferencing worth USD 2 billion with a focus to strengthen the company’s video conferencing business.
The COVID-19 pandemic impacted the global business environment and the organizations allow their employees to work from home for smooth business operations. So, there has been a surge in the demand of Video conferencing solutions, especially highly impacting nations. Therefore, the small-medium business organizations, as well as the employee interaction, would contribute to the demand for the video conferencing solutions for the flexibility and smooth business run which would contribute to the increasing market share in the forthcoming years 2020-25.
Furthermore, the surging demand for video conference solutions from the institutions, hospitals and government & defense for the meetings, seminars, and classes are some of the key factors propelling the demand for video conferencing solutions.
Asia Pacific to Soar with the Highest CAGR in Forthcoming Years
In 2019, North America grabbed the major market share. The surging number of solution providers and emerging startups in countries such as the U.S and Canada are galvanizing the market. Furthermore, the surging adoption of video conferencing in educational sectors and the healthcare sector in the U.S is one of the key contributing factors. Also, the strategic alliances by the international players in the industry to expand geographical coverage in the region is boosting the sales of video conference solutions. For instance, Kinley and Pexip partnered in 2019 for the expansion of video conferencing business solutions in North America and EMEA. However, APAC is expected to witness a robust growth in the forecast period of 2020-25 owing to the increasing adoption of video conferencing by the small-medium enterprises in the developing countries.
Corporates to Capture Major Market Share
In 2019, the corporates grabbed the major market share and the same trend is expected in the forthcoming years too. The increasing need for reducing operations costs and effective communication from the remote locations are contributing to the increasing market share of corporates. However, the emphasis of players such as Huawei Technologies and Microsoft corporation in the industry to provide video conferencing solutions especially for the corporate are adding pace to the market share growth.
Furthermore, the healthcare sector is adopting video conferencing solutions due to the need for immediate medical assistance from a remote location coupled with the adoption of telemedicine services in countries such as the U.S, China, France, etc. are helping the market share to increase.
The hardware segment dominated the market in 2019, owing to the offering of technologically advanced hardware such as AI and facial recognition in cameras, microphones with better audio quality by the players in the industry. However, the need for consulting on deployment, maintenance, and repair, etc. are generating the need for services in the video conferencing market.
The large enterprises captured the major market share in 2019. The early adoption of any technology to remain upgraded and technologically advanced across industries makes the large enterprises the market dominator. The large enterprises demand cloud adoption due to the geographically scattered business, so it is expected that in the forthcoming years the cloud deployment would dominate.
Furthermore, the telepresence type gathered the major market share in 2019 owing to the benefit such as the ability to support the business enablement, improved productivity, etc. However, the desktop segment is expected to exhibit significant growth in the near future due to cost-effectiveness and ease of use, as revealed by the Research.