Enterprise Video Conferencing Market Analysis by Component {Hardware (Camera, Headphone, and Others), Software, and Services}; by Deployment (Cloud-Based, On-Premise, and Managed); by Enterprise Size (SMEs, and Large Enterprises); by Application; and by End-User (Education, Corporate, Healthcare, Government & Defense, Media & Entertainment, BFSI, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 164 | Published Date: Feb 14, 2023
The global enterprise video conferencing market is estimated to garner a revenue of ~USD 20 Billion by the end of 2035 by growing at a CAGR of ~12% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 7 Billion in the year 2022. The growth of the market can primarily be ascribed to faster digitization and the presence of visual data-sharing technology backed by the rising prevalence of the internet. According to the data released by the World Bank, until April 2022, the digital economy accounts for 15.5% of global GDP and has grown 2.5 times faster than global GDP over the last 15 years.
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As the entire world is moving closer to globalization, multinational corporations are relying more on video conferencing and meetings to get the best information and decisions from their offshore operations. Real-time visual sessions between one or more participants are referred to as video conferencing sessions. Video conferencing solutions assist organizations in achieving their priorities by discussing strategies and providing training via video conference platforms to improve business performance. Furthermore, as businesses and individuals aspire to stay connected, global lockdowns imposed in response to the COVID-19 pandemic have resulted in a significant increase in demand for video conferencing and teleconferencing options. For instance, as a consequence of COVID-19, web conferencing technologies were used for the first time by around 35% of enterprises globally in 2020.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~12% |
|
Base Year Market Size (2022) |
~ USD 7 Billion |
|
Forecast Year Market Size (2035) |
~ USD 20 Billion |
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Regional Scope |
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Growth Drivers
Increasing Integration of Cloud Technology - Cloud computing or cloud technology refers to connecting to online services hosted on the cloud via the internet. These services range from basic cloud storage to cloud infrastructure channels. The integration of cloud technology is highly influencing enterprise video conferencing.
By 2021, cloud data centers are estimated to manage approximately 91% of all workloads.
Growing Use of Artificial Intelligence (AI) – Emerging use of Artificial Intelligence (AI) in Natural Language Processing (NLP) is paving a way to create more advanced tools i.e., language translation, voice-to-text transcription, report generation to make video conferencing an easy and advanced medium to stay connected. So, the rise in implementation of Artificial Intelligence is leading the enterprise video conferencing a step ahead.
For instance, by 2022, more than 46% of businesses are projected to use several aspects of AI to efficiently use big data.
Increasing Deployment of Internet of Things (IoT) - Over 9 billion Internet of Things (IoT) devices were connected as of 2021 and this number is estimated to cross approximately 25 billion IoT connections by the end of 2025.
Rising Trend of Remote Work – Since the COVID-19, the work from home model has been much popularized. Now lots of people and organizations have been working remotely and seeking the advantages of this concept in the presence of various type of technological tools i.e., video conferencing.
For instance, by January 2022, approximately 58% of global businesses have embraced the fully remote or hybrid working model.
Expanding 5G Network - 5G has brought some amazing turns in virtual world. It outperforms 4G LTE networks in terms of speed, connectivity, and capabilities. For instance, globally, the total number of 5G smartphone subscriptions are estimated to reach approximately 1.5 billion in 2022.
High Cost of Hardware Solutions Deployment
Data Privacy and Security Concern
The possibility of a data breach is still present and is a major concern where personal chats and documentation can be exposed to third parties. Furthermore, many hackers across the globe always finding ways to penetrate the system to steal significant file or statements of firms. Hence, this factor is estimated to propel the growth of the market over the forecast period.
Lack of Skilled Software Engineers and Developers
The global enterprise video conferencing market is segmented and analyzed for demand and supply by end-user into education, corporate, healthcare, government & defense, media & entertainment, BFSI, and others, out of which, the corporate segment is anticipated to grow at a significant rate over the forecast period owing to an increase in the number of geographically diverse corporate teams to attend training sessions, collaborate and work together. By 2022, 77% of corporate businesses have been using video conferencing software.
The North America enterprise video conferencing market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The growth of the market can be ascribed to well-established businesses in the region, constant technological expansions, and increased demand for constant high internet connectivity and visual meetings. For instance, nearly 91% of American companies are estimated to invest in video conferencing technology by 2022.
ZTE Corporation
Microsoft Corporation announced Barclays has selected Microsoft Teams as its ideal collaboration platform for more than 120,000 colleagues and service partners across the globe.
Avaya Inc., revealed new competencies for its modern workstream collaboration platform - Avaya Spaces that projected to offer enhanced Unified Communications capabilities. With Avaya OneCloud CPaaS (Communications Platform as a Service), meetings are enhanced by artificial intelligence, and voice and video calling are simplified.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing deployment of the Internet of Things (IoT) is estimated to majorly boost the market growth.
Ans: The market is anticipated to attain a CAGR of ~12% over the forecast period, i.e., 2023 – 2035.
Ans: The lack of skilled software engineers and developers is estimated to challenge the market growth.
Ans: The market in North America region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Microsoft Corporation, Cisco Systems, Inc., NTT Communications Corporation, Avaya Inc., AVer Information Inc., Zoom Video Communications, Inc., Singtel Optus Pty Limited, 8x8, Inc., Lifesize, Inc., and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue-generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by component, deployment, enterprise size, application, end-user, and by region.
Ans: The corporate segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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