Video conferencing is a live video-based platform made for conducting meetings between two or more individuals in distinct locations through a video-enabled device. It allows several individuals to meet and collaborate face to face through long distance meeting by transmitting video, audio, text, and presentations in real time via internet. This is allowing the video conferencing market players to experience substantial development in demand for their products over the years. The businesses are detecting a broad array of advantages as the companies are replacing their obsolete web or audio conferencing contracts with a modern cloud-based video conferencing solutions. Through their video conferencing solutions players, like Zoom and Lifesize, help enhance team communications and collaborations while increasing employee engagement and reducing operating costs.
These advantages are reflecting in the rise in adoption, which, in turn, is showcasing growth in the video conferencing market. The video conferencing market report identifies top countries and segments for opportunities and strategies based on market trends and leading competitors' approaches. The global video conferencing market size is expected to grow from USD 9.2 billion in 2021 to USD 22.5 billion by 2026, at a Compound Annual Growth Rate of 19.7% during the forecast period.
With COVID-19, the entire workforce has experienced a transition toward remote working, paving a way for video conferencing solution and hardware products. The reduced travel time and cost, the importance of involving employees in determining strategic goals, and the rising need for virtual meeting rooms have overall increased the spending of companies on video conferencing solutions. In 2020, the Zoom Video Communication Inc. accounted for around 15% of the global video conferencing market share. The pandemic induced virtual meetings and online learning propelled the demand for the Zoom video conferencing solutions.
The adoption for the Zoom video conferencing solutions was high from the end-use industries such as education, technology, and healthcare. The company witnessed the y-o-y of more than 165% in the first quarter of 2020, which increased to 350% in the subsequent quarters. In 2020, the corporate sector accounted for over 60% of the UK video conferencing market share and will witness steady growth through 2027 impelled by the closure of offices globally. With sudden shutdown of offices, several Small Medium Enterprises have shifted to video conferencing solutions to organize virtual meetings for business continuity. There were about 5.5 million small businesses in the UK at the start of 2021 and SMEs held more than 99% of the business population (5.6 million businesses). Small businesses adopting cloud-based collaboration solutions for cost-effectiveness will boost the cloud-based virtual collaboration market demand.
The increasing usage of advanced digital solutions across the corporate sector will enhance the industry outlook. North America dominated the market for video conferencing in 2020 and acquired a revenue share of over 39%. The regional market is mature in terms of the adoption of video conferencing solutions. However, growth opportunity lies in the region for upgrades to existing equipment and subscription of cloud-based services. Increased demand for continuous access to high-quality internet and visual meetings is expected to contribute to regional growth. The presence of several key players, coupled with the growing popularity of Bring Your Own Device solutions, which has resulted in the large-scale adoption of webcams and headphones, is further expected to drive market growth.
By all indications, the global web conferencing market is one of the most dynamic in the entire technology world today. The ever increasing demand for the best cloud-based communications solutions and mobile applications among businesses is a significant driver of this growth. The growing appreciation of business mobility and the implementation of Bring-Your-Own-Device policies also advance the web conferencing market share for these tools. The plunging prices of video and web conferencing products, both software and hardware, are also helping boost this market growth.
It is required collaboration with all the international and domestics players. Key challenge that companies were facing a combination of right collaboration toolsthat can help marketeers to exchange the idea and communicate to each other as effective as a face to face meeting. This has made the web conferencing a key differentiating medium due to requirement of communicating with clientele in the real time. Web conferencing market has seen an extensive growth due to its various features mentioned above, and it has become a generic platforms for the key application such as meetings, presentations, lectures, training events. Eventually web conferencing has become a key factor in business process and productive software suites. The demand for web conferencing is growing rapidly and has represented 25 to 30% increase in uses from service providers.
Owing to the stiff completion in the global webconferencing market, these companies offer remarkable services such as Citrix GO To Meeting, WEbEX MEetMe Now, IBM, Acrobat Connect Profeshional, and Micrsoft Office Live Meeting. The U.S. video conferencing market is forecast to register growth rate of above 19% through 2027, led by the growing adoption of cloud-based solutions. The solutions allow users to download the application on multiple devices, such as smartphones, tablets & laptops, fueling the market revenue. The on-premise segment dominated the video conferencing market in 2020 by capturing a revenue share of over 59%. This can be attributed to the increasing adoption of on-premise deployment by large organizations in response to the growing concerns regarding data theft and effective maintenance of information security systems.
However, the segment is expected to witness slow growth over the forecast period owing to the growing prominence of cloud-based solutions. In response to this trend, companies have also started moving to the cloud revenue generation model. For instance, Avaya, Inc. transformed its revenue generation model from legacy on-premise to cloud.
North America is expected to dominate the global video conferencing market in terms of revenue share in the global market during the forecast period. The growing trends of implementing video banking solutions owing to the growing penetration of mobile and online banking among users are expected to accelerate the video conferencing market growth. In addition, video banking allows end-users to communicate securely, and connect with remote clients and coworkers, thereby improving operational efficiency. Hence, there is growing adoption of visual communication solutions in the banking and finance sector for loan officers, consumer service representatives, financial advisors, and many others.
Key players are introducing new products to cater to the rising demand for video banking solutions in the banking and finance sector. Based on deployment mode, the cloud segment is accounted for the largest share of the video conferencing market in 2021. The cloud-based video conferencing is helps to reduce costing of investing and maintaining expensive infrastructure equipment required for on-premise deployment. Also, the most cloud video conferencing services are inter-operate able with the major hardware providers such as Cisco, Logitech and Lifesize.
In addition, the cloud services are highly secure with the latest security firewall, thus reduces the risk of data breaching. It is estimated that the cloud segment will grow with the fastest CAGR during the forecast period. The enterprise segment dominated the market in 2020 by capturing a revenue share of over 84%.
Conference video endpoints are room-based hardware solutions that are fixed, installed, and configured in meeting rooms and boardrooms. These are all-in-one systems that do not require additional hardware or software, as the codec communicates with other endpoints and transfers video signals and data. Before the COVID-19 pandemic, the growth prospects of enterprise-based video conferencing solutions were estimated to be robust, based on increased adoption in enterprise conferencing as a mode for communication and collaboration among workers. The demand for video conferencing platforms is higher than ever, and the global video conferencing market size is expected to reach $10.92 billion by 2027.
By looking at the global search volume, our study revealed the total market share for each video call platform, and compared 2020 vs 2021, to see which platforms achieved the most growth during the pandemic. Based on organization size, the SMEs segment is expected to account for the largest market share in 2021. Small businesses must have a preferred video conferencing tool to communicate with their teams, clients, and vendors. The growing adoption of cloud-based video conferencing apps and remote working due to the pandemic has boosted the demand from SMEs. With a video conferencing tool, small businesses can easily update team members on the status of a task or project and accomplish goals faster due to seamless video communication. Based on component, the solutions segment is expected to account for the largest share of the video conferencing market in 2021.
This segment consists of hardware endpoints and software required for video conferencing. The growth in the adoption of room conferencing meetings during the lockdown has positively impacted the demand for multi-codec and single-codec endpoints, such as cameras, phones, and mics. In addition, the growing adoption of cloud-based software, such as Zoom, Teams, Webex, and Meet with the daily increase in their subscriptions is expected to drive the growth of this segment. Asia Pacific video conferencing market size is expected to achieve 26% CAGR during the forecast timeframe, propelled by progressive government initiatives in the region.
The schemes offered are focused on increasing accessibility & affordability of the Internet & related services, thus fast-tracking digital transformation. For instance, in January 2021, a Memorandum of Understanding was signed between India and Japan to promote the development of telecom security, 5G technologies, and submarine optical fiber cable systems. The enhancement in technology will increase the feasibility of digital services, driving the regional market expansion. The global video conferencing market is segmented on the basis of component, type, end-user, deployment and enterprise size.
Based on the component, the market can be classified into hardware, software and services. The market can broadly be segmented into Corporate Enterprise, Healthcare, Government, Education and Other, in terms of end-user. Whereas, on the basis of deployment, the global video conferencing market can broadly be divided into Cloud, On-Premise and Other. And, depending upon the enterprise size, the market can be categorized into Large enterprises and Small & Medium enterprises. In 2020, North America dominated the video conferencing industry, with a revenue share of more than 39%. In terms of video conferencing solution usage, the regional market is mature.
However, there is room for expansion in the region for upgrading existing technology and subscribing to cloud-based services. Increasing internet penetration and surge in number visual meetings is projected to contribute to regional growth. The existence of many important companies, together with the rising popularity of Personal Devices options, which has resulted in widespread use of webcams and headphones, is likely to push market expansion even further. The global web conferencing market is characterized by growth, innovation, and technology advancements. The advent of a new breed of team collaboration tools is disrupting established business models and forcing incumbents to adapt and innovate at a faster pace or be left behind. The number of providers that are looking to reshape the web conferencing market has recently surged.
Lower-priced cloud video conferencing services have emerged at a fast pace to vie for the same set of users. This research provides web conferencing providers and their partners with a detailed analysis of the current and changing dynamics in the fast-evolving marketplace. Large enterprises are the primary clientele of video conferencing services as they need reliable and secure conferencing solutions.
Large enterprises focus on corporate network performance, keeping tight integration with emerging technologies such as SD-WAN. • The report provides a comprehensive analysis of the global video conferencing market segmented on the basis of component, type, end-user, deployment, enterprise size and region. The Middle East region has witnessed a rapid need to connect between various countries in the recent past which has led to the growth of advanced video communication services and software in the region. Video conferencing has utility across all the key verticals such as corporate enterprises, government organizations, educational institutions, transportation and healthcare organizations. Further, initiatives taken by high-end developers have led to the growth of audio and video cloud streaming services in the Middle East region which has further spurred the growth of the video conferencing market in the region. Some of the end-use industries in the global web conferencing market include Banking and Financial Services, Education, Pharmaceutical/Healthcare, Manufacturing, Government, Information Technology, and others.
Among all the aforementioned end-use segments, Information Technology segmented accounted for the largest market share with 24% of the total share in 2014. Others segment represented 21% share to the global web conferencing market in the same year. Furthermore, Banking and financial services, manufacturing, and healthcare segment accounted for 16%, 15%, and 14% each respectively in 2014. This government segment is still follow the traditional medium for business and is yet to adopt the technology innovation. According to the market research, the web conferencing market was value at US$ 1.80 Bn in 2012.
The web conferencing market is expected to reach at US$ 2.88 Bn by 2017, exhibiting a CAGR of 9.8% between 2012 and 2017. The need for enhanced productivity from employees, and constant need of technology innovation are the key factors driving the web conferencing market over the next five years. The global web conferencing market highlights the key insights about the regions include North America, Europe, Asia Pacific, and Rest of the World . The global video conferencing market size is expected to reach USD 8.56 billion by 2027, expanding at a CAGR of 9.9% from 2020 to 2027, according to a new study conducted by Grand View Research, Inc. Growing usage of these solutions in startups, educational institutes,and organizations, especially in the emerging countries of Asia Pacific, are expected to drive the market. Moreover, proliferation of 4G-enabled mobile devices and rise in the number of Video Conferencing-as-a-Service providers are expected to contribute to market growth.
By 2028 with a CAGR of 11.4% over the forecast period, according to a new report by Grand View Research, Inc. Trends such as the increasing transition towards cloud and the growing adoption of Video Conferencing as a Service are expected to drive market growth. As remote and globalized working models are becoming popular, the move to the cloud is becoming inevitable, thereby driving the demand for video conferencing solutions.
In order to ensure business continuity amidst the COVID-19 crisis, business organizations, especially in highly affected countries are allowing their employees to work from home. The increase in people working from home has led to a surge in demand for online video viewing, downloading, and communication through video conferencing, all of which are leading to increased network traffic and data usage. COVID-19 shall accelerate the demand for agile and flexible work styles and further push the adoption of communication services that tend to improve work-life balance.
On the flip side, telecom regulators worldwide have postponed their plans of 5G spectrum auction amidst the global pandemic. This is expected to have an impact on the commercialization of commercial 5G standalone deployments and revenue generated through 5G services. The ongoing pandemic has forced telecom operators worldwide to test their network resiliency and revisit their planned investments, especially in 5G technology. Among these, the solution segment is estimated to hold the largest video conferencing market share during the forecast period.
The growth is attributed to the rising demand for video collaboration solutions such as Zoom, Skype, Microsoft Teams, and others in various industries. 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 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 launch of 5G technology contributed to the growth of video conferencing market during the forecast period. Due to the COVID-19 pandemic, a large number of organizations globally have encouraged their employees to work from home or remotely, driving the demand for video conferencing applications and software. The education sector witnessed a notable rise in the demand for these solutions in 2020 to continue with online learning and seminars. The primary growth driver for the market, especially in 2020, remained the need for organizations to facilitate employee collaboration, which led to the demand for conferencing apps such as Microsoft Teams, Google Meet, and Zoom.
Several companies have witnessed the digital transformation in just 2 to 3 months that would otherwise occur over two years due to the COVID-19 pandemic. However, despite the elevated demand, security concerns have posed to be a challenge to market growth. The corporate segment dominated the market in 2020 and acquired a revenue share of over 28%. The growth can be attributed to the rapid advancement of the cloud-based communication and collaboration software industry, opening up the market for new players. The continuous growth in the number of remote or geographically dispersed teams has encouraged the larger use of cloud-based platforms for seamless data sharing, collaborating, and communicating. Team communication and collaboration software enable remote teams to streamline business processes, manage projects of all sizes, and boost productivity across the organization.
The growth is attributable to the rising demand for video collaboration solutions for advanced automation processes in the research and education sectors. Key market players are focusing on product launching strategies to enhance their product portfolio. The aim is to expand the simple, fast, and cost-efficient teams meeting product offerings for large and medium enterprises. The region is expected to exhibit enormous growth potential in the market, owing to the existence of a considerable number of SMEs and a huge number of headquarters of global top 1000 companies in the region.
Additionally, the need for professional video conferencing in the Middle East region has increased significantly over the past few years as the business environment has changed drastically. Video conferencing helps an enterprise to operate efficiently through conducting meetings, providing training and discussing business plans from distant locations. Not only may direct savings be made on travel expenses, but also on communication costs.
