Cloud-based video conferencing and corporate buyers will lead the market growth over the next seven years.
Transparency Market Research predicts that the global video conferencing market will nearly double over the next seven years. The research firm estimates that the market will grow from $6.1 billion in 2019 to $11.56 billion by the end of 2027. This represents an 8.4% compound annual growth rate.
Cloud-based video conferencing software will dominate the software category in the video conferencing market, according to Transparency's Video Conferencing Report. This trend has improved encryption and password protection for cloud-based video conferencing systems. The use of 3D technology in video conferencing solutions is also accelerating demand for this solution globally. Introducing virtual reality elements to video conferencing could create a more realistic interpersonal experience and overcome existing problems such as poor lighting and sound.
Other factors influencing the overall growth of video conferencing market globally include:
- Increased adoption among small and medium enterprises' growth
- Increased growth of outsourcing business services
- Growing trends of a mobile workforce and Bring Your Own Device
The report states that many business owners want video conferencing solutions to improve productivity and to foster real-time, face-to-face interaction anytime anywhere around the globe. Also, video conferencing vendors are developing new services to match customer expectations for enhanced features and integrated capability over connected devices.
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The corporate enterprise segment of the video conferencing market is expected to maintain the biggest share of the market and to expand at a CAGR of 6%, according to the report. The increase in telemedicine services over the next seven years will drive healthy growth of video conferencing in the healthcare sector.
Asia Pacific is expected to dominate the global video conferencing market from 2020 to 2027. This dominance of the market is the result of the growth of various multinational corporations in India, China, and Japan. With headquarters in countries around the region and the world, management can keep the geographically distributed businesses collaborating successfully by using video conferencing.
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As government leaders ban large gatherings of people, some event organizers are using streaming video to replace in-person events. Gartner, for instance, estimated that by 2024, a mere quarter of enterprise meetings will be conducted live--as opposed to the 60% that took place this way in 2019. BlueJeans, Zoom, Cisco WebEx, and MegaMeeting are several options for hosting large gatherings via video.
Vendors winning market share
The global video conferencing market is highly competitive and moderately fragmented. A few prominent players dominate the market, including Cisco Systems, Inc., Polycom Inc., and Huawei Technologies Co., Ltd. According to the report, these players are using mergers and acquisitions to strengthen their hold on the global market.
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The report listed these companies as other significant players in the video conferencing market:
With on-premise video conferencing, the entire solution, including infrastructure, network, and end-points, are owned by the organization and located in the company offices.
With cloud-based video conferencing, providers manage and maintain the infrastructure remotely.
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