The global video conferencing market size is expected to reach USD 9.95 billion 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 (VCaaS) 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.
Key Insights & Findings:
In terms of components, the software segment is expected to register the highest CAGR over the forecast period. This can be attributed to the increase in cloud-based subscriptions across different platforms
Small and medium-sized companies are adopting these services to rapidly expand their geographic operations by establishing a centralized communication platform that uses advanced technologies, such as 4G and VoIP. Hence, the small and medium enterprises segment is expected to expand at a promising pace over the forecast period
In terms of end use, the healthcare sector is expected to witness substantial growth over the next few years. The need to remain connected across dispersed teams has elevated the demand for video conferencing solutions in the healthcare sector
Growth in the educational sector has also gained traction owing to the increased demand for distance learning. Web conferencing, audio conferencing, and IM are being widely used for delivering notes and streaming live conferences
Market players offer a competitive pricing structure and bundle services to help the end users save costs. Recently, companies such as Ring Central and 8x8, Inc. have updated their pricing structures with multiple tiers of pricing plans
Read 150 page market research report, "Video Conferencing Market Size, Share & Trends Analysis Report By Component (Hardware, Software, Service), By Deployment, By Enterprise Size, By Application, By End Use, By Region, And Segment Forecasts, 2021 - 2028", By Grand View Research
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.
"Video conferencing solutions witnessed high adoption rates from corporate houses as well as the education sector during the global COVID lockdown."
The increased demand for these solutions has encouraged market players to offer products with distinctive features and innovations to remain competitive. In 2020, Google Meet, Google's video meeting tool that was meant to be an enterprise solution, was made available to everyone to directly compete with competitors. Furthermore, in April 2020, Facebook launched its video meeting tool Messenger Rooms, which allows 50 people to join a video conference. In March 2020, Microsoft Corporation rebranded Office 365 to Microsoft ...
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