Global platforms for Video Conferencing in context of Work from Home to reach $9.97 Billion in 2025

As the world is witnessing a new normal in the way the world works due to the sudden outbreak of the pandemic COVID-19.

‘Work from Home’ model has become the effective solution in the times of difficulty to commute and hence Video Conferencing is witnessing significant demand from businesses around the world for effective business communication and this factor is expected to fuel the growth of the Video Conferencing platforms market

Definition / Scope
Market Overview
Key Metrics
Market Risks
Market Trends
Industry Challenges
Technology Trends
Other Key Market Trends
Market Size and Forecast
Market Outlook
Technology Roadmap
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References

Definition / Scope

The coronavirus has captured international attention as the latest disease to spread across the world. Starting in Wuhan City, Hubei Province, China, it is now in over 140 countries worldwide. According to the World Health Organization, it is a public health emergency of international concern (PHEIC).

Working remotely Doctors and Tele-Health workers are safe from the personal contact with infected patients and continue care with nearly the efficiency of in-person appointments.

In what has been called “the world’s largest work-from-home experiment,” the outbreak of the coronavirus has caused many office-based companies to do all of their business work in cyberspace. Working at home isn’t a new trend, as remote jobs grew 159% in 12 years, which is a much quicker rate than other job styles.

Video conferencing is an increasingly key part of remote working. As working from home becomes a more common practice, having a reliable video conferencing service has become more important than ever.

Having an effective video conferencing service can empower employee flexibility to work remotely from home, with many businesses now having multiple office locations.

Market Overview

Payment Type Insights

The Video Conferencing platforms are offered as paid-solutions and as Freeware.

The paid-solutions are offered in subscription-basis for a set-period of time at a pre-defined price tag and on up-front fee for life-term use. Some of the popular paid Video-Conferencing platforms include Cisco Webex Meetings, ClickMeeting, Zoom Meeting, GoTo Meeting, Microsoft Teams and Zoho Meeting.

The Freeware platforms offer Video-Conferencing solutions at free of cost for life-term validity.

Though freeware is popular among casual-users, it is not preferred by Organizations in context of work-from-home, as they may pose security and privacy threats as some of the Freeware solutions might contain spyware which might record the video-conferencing session.

Hence, paid-solutions are preferred and most commonly used as platforms for Video-Conferencing in context of work-from-home. Some of the popular Freeware Video Conferencing platforms include Zoom, UberConference, Google Hangouts Meet, RingCentral Meetings and Skype.

Component Insights

The hardware segment dominated the market in 2019 owing to the emergence of IoT, which has enabled the rapid integration of hardware with each other and into cloud-based software solutions.

This factor has increased the interoperability between different enterprises’ devices. In addition, increasing emphasis on the production of video conferencing cameras with features, such as facial recognition and artificial intelligence, by camera manufacturers such as AVer Information Inc., is boding well for the segment.

Significant growth is anticipated in the Services segment over the forecast period due to increasing demand for services related to project management, employee training and the implementation of new solutions.

Such networks are being embraced by SMEs to extend their regional operations quickly by creating a centralized connectivity network that uses advanced technology, such as 4 G and VoIP. It has increased the engagement between teams working at various locations in different cities and countries.

Enterprise Size Insights

The large enterprises segment is driven by increasing the adoption among large enterprises of video conferencing solutions to create partnerships among employees located in different locations.

Over the past few years, numerous IT and telecom companies have signed long-term agreements with service providers, such as Cisco Systems, Inc. and Logitech S.A., which further drive the growth of the sector.

The segment of small and medium-sized enterprises is expected to see substantial growth in coming years. This is due to government support in providing funds for the adoption of cloud-based solutions to small and medium-sized enterprises, which is expected to drive demand for video conferencing among SMEs.

For example, the Government of Canada provided support for the implementation of cloud-based technologies to startup companies. 60 per cent of SMEs in India have implemented cloud-based solutions, according to research conducted by the National Association of Software and Services Companies (NASSCOM).

It is expected to grow over the next eight years to 75 per cent. In addition, emergence of cloud-based solutions that have lower costs as compared to on-premise software is anticipated to enhance the demand for these solutions among SMEs.

End-use Insights

In 2019, the corporate segment dominated the market as the video conferencing system acts as an effective communication tool and helps to reduce travel and operating costs for both small and large-scale businesses.

In addition, the use of this technology has greatly increased in corporate firms for cost-effective, real-time, and long-distance communication and for increasing the efficiency of various teams located in multiple locations.

In addition, the implementation of VoIP has enabled companies to make use of the underlying network infrastructure which consists of leased lines for free communications purposes.

In addition, companies such as Microsoft Corporation and Huawei Technologies Co., Ltd. emphasize the development of such systems, especially for corporate companies.

For example, ezTalks introduced ezTalks Meetings in March 2019, a video communication platform that integrates a whiteboard that enables participants to interact by drawing. It also includes a screen sharing function that lets managers monitor their resource efficiency.

In the coming years the healthcare sector is expected to see substantial growth. Growing need for urgent medical assistance to remote-located patients is driving the adoption of these solutions in the healthcare industry.

Growing emphasis of various healthcare organizations on offering medical training to its workers using these approaches supports the growth of the market. In addition, increased adoption of telemedicine services in developed economies has greatly boosted healthcare segment growth.

As of September 2019, 76 per cent of U.S. healthcare institutions have embraced telehealth, according to the American Telemedicine Association.

Deployment Insights

Over the forecast period the cloud segment is expected to experience remarkable growth. Cloud-based applications provide enhanced functionality for end users by providing convenient access to the video conferencing network across various platforms, such as cell phones and laptops.

In addition, service providers stress the implementation of software-as-a-service systems to provide video conferencing services that have attracted a growing number of small and medium-sized enterprises.

In addition, rising popularity and acceptance of cloud-based solutions is expected to fuel the segment’s growth due to the development of better encrypted and password-protected solutions.

The on-premise segment is expected to see substantial growth in the years ahead. This is due to the rising adoption by large organizations of the on-premise delivery approach in response to growing concerns regarding data protection and successful management of information security systems. Different companies follow the form of deployment on-site, as it enables simple product configuration according to the business processes of the client.

Similarly businesses include ezTalks Logitech International S.A. And Microsoft Corporation is emphasizing improving its on-premise program by improving the ability to keep more members.

Market Risks

Security Risks

With two-third of the world’s population is enduring restricted movement to curb COVID-19 spread. The lockout has forced vast swaths of the working population to become, mostly for the first time, remote workers.

The unexpected surge in staff, students, teachers and many other professionals working from home is causing an immense rise in demand for video conferencing, online networking platforms and chat systems.

When any technology sees its popularity increase quickly, the number of bad actors taking advantage of new and untrained users also grows. The world is seeing this now with videoconferencing services and applications, as reports about the popular Zoom app being hijacked — known as “Zoom-bombing” — have surfaced.

While hijacked meetings are disruptive and disturbing for participants, a more insidious threat is intruders who lurk in meetings without revealing their presence — a nightmare for corporate security and individual privacy alike.

The security issues are a cause of lack of awareness about the security features that these Video Conferencing solutions offer to the users and the security vulnerabilities affect the adoption of the technology for business use cases.

Privacy Risks

The personal information such as email addresses, usernames and photos of the users are pivotal information and they are getting exposed to the harmful predators.

For instance, Recently, the Dutch zoom users whom used ISP -provided email addresses were able to see email addresses, usernames and even profile pictures of them and others in the company folder.

Also some Video Conferencing solutions sell personal information of users for a price to the information traders. For instance, Zoom’s privacy policies was revealed to have clauses which give the company full right to share user data with third-party marketers.

The privacy issues that come along with the usage of Video Conferencing platforms may cause serious loss to the users both financially and personally. Hence, there exists a lack of trust by the users for adopting the Video Conferencing technology.

Top Market Opportunities

Video Conferencing offering a cost-effective solution

Various companies are using video conferencing as a technological tool to enhance interaction and collaboration among geographically dispersed teams particularly in context of work from home.

They are also increasingly focusing on reducing communication costs, which has created a significant opportunity for industry players, leading to advanced conference solutions and services such as telepresence and webcasts being developed.

Companies including Axis Communications AB, Robert Bosch LLC, and Sony Corporation have partnered in recent years to set standards, including the Open Network Video Interface Forum (ONVIF).

ONVIF defines the way through which video devices communicate with each other over the Internet Protocol (IP) technology.

Opportunities in Emerging economies

Due to the extreme COVID-19 (coronavirus) spread around the world, many businesses now rely on video conferencing to carry out their daily business practices. The popular policy of ‘work from home’ in many companies has contributed to the exponential increase of video conferencing use.

As such, ZOOM Cloud Meetings — a free HD meeting app, became popular with users before it was reported on the video conferencing market for various security issues.

Consequently, India’s Ministry of Electronics and Information Technology (MeitY) recently announced the ‘Innovation Challenge for Developing a Video Conferencing (VC) Solution’ under the Digital India Programme.

Security issues related to the ZOOM Cloud Meetings app have led, particularly in India, to the introduction of alternative video conferencing apps. India is one of Asia Pacific’s leading economies and contributes to the region’s overall revenue growth, expected to rise from 19 percent market share in 2020 to ~24 percent of the video conferencing market by 2024.

Market Trends

Rising need to ensure Business Continuity

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 contributed to a rise in demand for online video streaming, uploading, and collaboration through video conferencing, both contributing to increased network traffic and data use.

COVID-19 will increase demand for agile and flexible work styles and further drive the adoption of communications services which tend to improve work-life balance, thereby fuelling the demand for Video Conferencing platforms.

Significant rise in the adoption of telepresence

There has been a significant increase in the use of telepresence in the education and healthcare sectors as it gives the users a practical way of communicating.

Telepresence robots are used in the healthcare sector to provide a virtual remote presence, which allows doctors to assist their patients at a remote venue.

In addition, the holographic integration technology in telepresence has increased the demand for telepresence systems.

Ban on travel due to the outbreak of COVID-19

The coronavirus pandemic has positively impacted the video conferencing market, as businesses and Governments see video conferencing as the best option for communicating with remote clients, consumers, and staff, and at the same time avoiding direct communication with individuals.

The travel ban limited the reach of international business companies, which in effect increased the adoption of video conferencing apps. The ban on travel has limited the reach of the enterprises in the foreign market, which in turn, has increased the adoption of video conferencing software.

On the other hand, the government uses video conferencing software to communicate with the doctors and administrative of their country and other countries as well.

Managing outsourced businesses

Managing outsourced businesses in the global context is a major factor which is expected to drive the growth of the worldwide video conferencing industry.

Companies from various verticals are trying to operate from several offices in different regions of the world as a result of growing globalization, exploiting local infrastructure advantages, the availability of resources, and reducing the cost of material procurement.

Organizations need to maintain continuous contact between headquarters and other geographically located offices to ensure the smooth operation of multiple offices worldwide. Outsourcing companies have witnessed rapid growth over the last few decades.

Many business owners are already willing to implement video conferencing solutions to improve their company profitability, as well as to facilitate face-to-face real-time contact anywhere across the globe. This factor is expected to augur well for the growth of the market.

Low bandwidth and network connectivity issues

Technical issues associated with smooth communications that may arise from software, hardware, low bandwidth or network connectivity generate video conferencing difficulties that hamper market development.

StarLeaf research suggests 90 percent of organizations experience some form of a challenge when sharing their screen during video meetings.

A third of UK organizations have difficulties when starting video calls due to poor audio, according to the company’s findings. As there is much to be discovered about the new Virus, the situation demands some action from employers, and StarLeaf agrees.

Video Conferencing solutions require higher bandwidth to the tune of 1 MBPS for clear connectivity and poor network connectivity can hinder the smooth connectivity among participants, sometimes even making the video call unable to be connected due to low bandwidth. This factor acts as a deterrent for the uptake of Video Conferencing as a communication solution.

Poor Audio and Video Quality

One of the major gripes video conferencing firms have is the poor video and audio disrupting meetings. Disrupted or postponed meetings can lead to losses or missed deadlines, it is little wonder it is the biggest problem the video conferencing industry has to deal with.

Audio call quality has taken a hit, according to number-monitoring experts, Spearline, which found China saw a 7.2 percent drop in audio quality in late January, while South Korea had a noted increase in connection issues and a 12 percent decrease in audio quality in late February.

Video quality is a major concern for improved video communication as the number of issues relating to quality is growing rapidly. Consumer expectations, especially for business applications, do not meet the consistently low quality standards of video communication.

In addition, a increasing familiarity with high definition and 4 K video resolutions keeps rising customer expectations. There is a possibility that low quality of video will impact customer experience in such a way that consumers will reject participation and find alternate ways to communicate.

Industry Challenges

High initial investments

The high cost of deploying these solutions is attributable to the use of data security software solutions for secure data transfer. Many companies including Zoom and Hall offer free video conference services that are best tailored for small and medium-sized businesses. However, the limited functionality these systems impedes their use.

Some of the popular subscription models are monthly and yearly subscription. The monthly subscription model costs about US$ 25 a month on average.

Companies such as Cisco Systems, Inc. and Plantronics, Inc. offer subscription plans in the annual subscription model that cost around US$ 500 per annum for one room and allow up to 25 users to host, which is a bit on the upper side affecting its affordability.

Stringent Regulation

Companies would also have to deal with regulatory issues while working for select sectors that deal with sensitive data like banking and healthcare sectors. In addition, governments in countries like China, India, and Japan have mandated service providers to lower the video quality of these services.

Owing to lockdowns, Internet use for work-related activities as well as streaming services, such as Prime Video, Hulu, and NetFlix, has been growing.

Due to the aforementioned causes, numerous network operators reported increased pressure on their networks. This would likely have an effect on the adoption of these systems.

Technology Trends

The Virtual Conferencing Platforms is a fast changing segment and hence can witness significant evolution in the technologies used. Some of the latest technology trends emerging in the segment include

Use of 3D technology

Use of 3D technology in video conferencing solutions is 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.

WebRTC

In the hosted segment, WebRTC or real-time communication is the latest trending technology that is gaining rapid adoption. Supported by Google, Mozilla, and Opera, WebRTC offers web application developers the ability to develop rich and real-time multi-media applications on the Web.

WebRTC is set to change the face of video conferencing by making virtual meetings possible through a web browser.

Pricing Trends

The Video Conferencing platforms are offered as paid-solutions and as Freeware.

Some of the popular subscription models are monthly and yearly subscription. The monthly subscription model costs about US$ 25 a month on average.

The Freeware platforms offer Video-Conferencing solutions at free of cost for life-term validity.

Though freeware is popular among casual-users, it is not preferred by Organizations in context of work-from-home, as they may pose security and privacy threats.

Regulatory Trends

Several Regulations are enforced by the regional countries regarding the usage of Video Conferencing solutions particularly for business engagements such as data sharing and handling of critical information, The major regulations overlooking the usage of Video Conferencing solutions are as follows

Internet Security Act (China)

This legislation was adopted by the National People’s Congress Standing Committee on 7 November 2016 and enacted on 1 June 2017. It requires network operators to store selected data within China and allows Chinese authorities to perform spot checks on network operations of a company.

On the context of video conferencing, the video conferencing solution can be used after the particular webpage can be used only after being redirected from the Chinese version of the webpage and be allowed to download the app that complies with Chinese regulations. For instance, if the Skype webpage needs to be accessed.

The user will be redirected to a Chinese webpage (skype.gmw.cn) where it will prompt to download a modified version of Skype that complies with Chinese regulations. Complying with Chinese regulations means that communication are redirected (and monitored) via a Skype partner in China.

General Data Protection Regulation (Europe)

The Data Protection Commission (the DPC), in recognising the need for specific guidelines, recently published Tips for Video Conferencing, which sets out how businesses should seek to comply with the EU General Data Protection Regulation (the GDPR) when utilising these services.

The DPC states that the controller (user) using Video Conferencing solution for Business communication must ensure that appropriate contractual terms are put in place that contain the data processing clauses set down by the GDPR;

Consider whether to engage suppliers whose servers are located within the European Union to avoid having to implement additional safeguards where personal data are being transferred outside the European Union and

Ensure any recording of a video conference is communicated clearly to the conference participants before the conference takes place along with the specific purposes for which the recording will be used/shared. The GDPR’s transparency requirements mandate that the data subject should be able to determine in advance the scope and consequences of the processing.

California Consumer Privacy Act (USA)

While CCPA has been called America’s GDPR, it’s by no means a rubber stamp of Europe’s largest data act. Gaining customer consent is already part of agent phone practices; the consumer has the right to know not only what information has been collected on them, but also to deny the sharing of it.

Having a call transcript to accompany the recording is vital for data protection if and when a CCPA right becomes an issue for the enterprise. There is a need to know exactly location from where the data is collected that contains every piece of customer information.

Other Key Market Trends

The deployment of the cloud and its impact on the adoption of video conferencing systems

The cloud’s proliferation has contributed to a series of shifts in how trends in teleconferencing are perceived. One of the conferencing service providers, Videxio recently signed a merger deal with Pexip, the software-assisted meeting platform, to accelerate the adoption of cloud-based video conferencing services.

As a result, the cloud’s growing popularity is one of the most prominent factors that encouraged businesses to implement partnership strategies and offer top-notch services in the video conferencing industry.

However, it has been observed that due to their simplicity and scalability, most IT companies have now embraced cloud-based video conferencing solutions. The introduction of video conferencing technology into the IT network has had a lucrative effect on the growth of the demand for web conferences.

The duo, Pexip and Vidxio are also aiming to introduce innovative and broader ranges of their products in order to reach more consumers, building on the above.

Having recognized that a diversified customer base is the key to industry expansion, technology companies have been working to develop robust and sustainable conferencing facilities, thereby pushing teleconferencing trends globally.

Speaking of yet another instance of the cloud proliferating video conferencing industry, a leading cloud-based service video & voice provider, 8×8, acquired the open source video communications technology provider, Jitsi Technology.

With the acquisition of this open source technology platform, 8×8 has successfully strengthened its video communication technology platform pertaining to the role that Jitsi’s team played in the development of WebRTC and conferencing applications.

In order to attract more customers who are looking forward to speeding up business operations while tapping smart teleconferencing trends, 8×8 is planning to integrate new technologies in its already popular video conferencing platform, 8×8 meetings.

This innovative and advanced conferencing platform is certain to help the firm fulfill the expectations of its customers better than before.

Market Size and Forecast

Global Video Conferencing Platforms Market Size

The market size of the Global Video Conferencing Platforms market is estimated to be US$ 6 Billion in 2019 and is expected to grow at a CAGR of 10.2% to reach a market size of $9.97 Billion in 2025.

Most of the corporate organizations have adopted the ‘Work from Home’ strategy owing to the risk of the pandemic. Thus, they are increasingly adopting these systems in order to track the work related activities and meetings.

As a result, network analytics companies such as Kentik have reported significant rise in the video traffic. Furthermore, various governments are focusing on holding their meetings on video conferencing.

The market is driven by factors such as cost reduction, advancement of technology, introduction of virtual reality into video conferencing solutions, ease of managing outsourced businesses and rapid adoption of telepresence for remote working purposes.

Market size based on Component type

Owing to the advent of IoT, the hardware segment dominated the market in 2019. The hardware segment holds a major share of the pie with 46% of the market share thereby generating revenues of US$ 2.76 Billion in 2019.

The services segment is expected to witness significant growth of 14.5% over the forecast period owing to rise in the demand for services related to project consulting, employee training, and deployment of new solutions.

The services segment generated revenue to the tune of US$ 1.2 Billion with a market share of 20% in 2019.

The Software segment is projected to hold a market share of 34% and generated revenue of US$ 2.04 Billion in 2019.

Market size based on Enterprise size

The large enterprises segment is driven by increasing the adoption among large enterprises of video conferencing solutions to establish collaborations among employees working from home and located in different locations.

The large enterprises segment holds a market share of 65.5% and generated revenues to the volume of US$ 3.93 Billion in 2019.

The category of small and medium-sized enterprises is expected to see substantial growth in coming years. This is due to government support in providing funds for the adoption of cloud-based solutions to small and medium-sized enterprises, which is expected to drive demand for video conferencing among SMEs. The SMEs generated revenues valued at US$ 2.07 Billion in 2019.

Market size based on Application

The Enterprises segment dominated the market in 2019 as the video conferencing system acts as an effective communication tool and helps reduce travel and operational costs for small as well as large scale enterprises.

The market revenue generated from the Enterprises segment is estimated to be US$ 2.1 Billion in 2019.

The Healthcare segment is the second largest revenue generator in the global Video Conferencing platforms market, generating revenue of US$ 1.2 Billion in 2019.

Increasing need for immediate medical assistance to patients located in remote locations is fuelling the adoption of these solutions in the healthcare sector.

Market size based on Deployment type

The On-premise deployment type is the largest segment in the global Video Conferencing platform market based on deployment type holding a market share of 60% and generating revenue of US$ 3.6 Billion in 2019.

Cloud segment is the fastest growing segment growing at a rapid growth rate of 16% and holding a market size of US$ 2.4 Billion in 2019.

Cloud-based solutions offer increased convenience to end users by enabling easy access to the video conferencing platform through multiple channels, such as mobiles and laptops.

Also aided by the factor that Enterprises have adopted the ‘work from home’ model due to the outbreak of the pandemic COViD-19.

Market Size based on Region

North America is leading the market owing to the presence of well-established businesses and high technology adoption in the region.

The market size of the North American Video Conferencing Platforms market is estimated to be US$ 2.4 Billion in 2019 and is expected to grow at a CAGR of 9.8% to reach a market size of US$ 3.91 Billion in 2024.

South America is witnessing significant growth due to the increasing demand from the economic zones of Brazil, Argentina and other countries in the region as their economies are transitioning towards service based model.

The market size of the South American Video Conferencing Platform market is valued at US$ 720 Million and is expected to reach a market size of US$ 1.19 Billion in 2024 growing at a CAGR of 10% in the forecast period.

APAC is the fastest growing region and the second largest in terms of market revenue. The growth of the region is attributed to the rapid adoption of the technology as enterprises in the region which is basically service-oriented businesses embracing the ‘work from home’ model on a large scale.

The market size of the APAC Video Conferencing Platform market is estimated to be US$ 1.5 Billion In 2019 and is expected to grow at a CAGR of 14% to reach a market size of US$ 3.01 Billion in 2024.

Europe is one of the mature markets in the segment and is set to witness demand either for upgradation or replacement of systems. The market size of the European Video Conferencing market is estimated to be US$ 900 Million in 2019 and is expected to grow at a CAGR of 10.5% to reach a market size of US$ 1.52 Billion in 2024.

Middle-East & Africa is expected to witness muted growth due to the lack of service-based business model in the region. The market is expected to grow at a meagre growth rate of 8.5% in the forecast period (2019 to 2024).

The market size of the MEA Video Conferencing Platform market is valued at US$ 480 Million in 2019 and is expected to reach a market size of US$ 733 Million in 2024

Market Outlook

The global market for video conferencing was estimated at ~US$ 6 billion in 2019 and is projected to grow at a CAGR of ~10.2% from 2020 to 2024, reaching ~ US$ 9.97 billion by the end of the forecast period.

A number of macroeconomic and industry-specific factors will continue to affect the global video conferencing market. Asia Pacific will remain at the forefront of global demand, with the region’s economy projected to expand at a higher rate over the forecast time span.

The growing lockout situation caused by COVID-9 affects all businesses. Therefore the market for solutions for video conferencing is projected to increase with the adoption of home model work across all technical companies.

High-priced endpoints, including high-definition (HD) screens, cameras, and microphones, as well as dedicated video conference networks, have led to a large proportion of the overall market revenue from video conferencing. During the forecast period, the software segment is expected to rise at a significant CAGR.

The software segment’s CAGR is high, due to growing demand for cloud-based video conferencing solutions worldwide for the purpose of work from home. The move to cloud-based video conferencing solutions is currently low; however, there is expected to be a major increase in the coming years.

The Services segment is also expected to see high growth during the forecast period due to a increasing trend between organizations to ensure the availability of video conferencing services without the need to hire and retain a permanent in-house technical team for this purpose.

The corporate enterprise sector was the top revenue generating segment, based on end-use industries covered in the report, which contributed most of the global revenue in the video conferencing industry.

This is the result of the ever-increasing number of multinational companies (MNCs) across the globe; globalization of the supply chain has also contributed to an increase in the need for efficient long distance communication.

On the other hand, the healthcare sector is expected to rise from 2020 to 2025, during the forecast period. By using video conferencing a hospital may prevent moving a patient who needs continuing intensive care.

It also increases the quality of treatment as physicians can communicate directly with those delivering care at other sites, as well as make clinical diagnoses and consult patients.

The government & defense sector is expected to contribute significantly to the overall video conferencing market due to increasing impact of COVID-19 on government work. Governments are expected to adopt video conferencing to connect with different government offices to increase production and operation during the lockdown condition in2020.

Technology Roadmap

Changing technology landscape and its impact on video conferencing industry share

The proliferation of new technologies, including machine learning, AI, IoT, etc., had a path-breaking effect on the implementation of solutions for video conferencing. Software giants such as Apple, Google, and Microsoft are seen to leverage video conferencing software widely and offer a plethora of new developments in product formulation.

The introduction of video conferencing solutions for video meetings, community webinars, and enterprise-level discussions in the corporate continuum is expected to become commonplace as corporate business owners’ approach to electronic communication systems and their implementation at the workplace shifts.

Many business owners have recognized the benefits of video conferencing in combination with the incorporation of AI in these applications – say, the amalgamation of AI and computer vision would lead to improved visual obstacle detection and eventually help maximize light balance.

Likewise, video conferencing solutions integrated with smart camera control can help monitor people through automated camera panning present in the room. With respect to the aforementioned advantages of video conferencing and the penetration of digital technologies, this software’s growth graph is likely to bow in the years ahead, driving trends in teleconferencing.

The trend is validated with the surging demand graph of unified communications & collaboration (UCC) market, which is slated to surpass US$ 60 billion by 2025.

A few other instances reflecting the introduction of technical advancements in conference aids include the launch of Google’s hangout, Apple’s FaceTime, and Microsoft’s Skype – all embedded in patented gesture recognition technology.

Taking into account the growing scope of video conferencing aids, tech magnates have been emptying their coffers to miniaturize devices equipped with video conferencing support for ease of handling and portability.Tablets, smartphones, and portable laptops are now integrated with full-fledged teleconferencing software.

The recent launch of Google’s Pixel is an example of a device that validates the integration of video conferencing aids and web conference miniaturization devices. The system is also equipped with a high-resolution front camera and 1080p video capturing quality which can be acceptable for video conferencing.

Competitive Landscape

The global video conferencing market comprises large as well as mid-sized manufacturers and suppliers. Currently, vendors in the video conference market are focused on introducing advanced software and incorporating new features within the software to allow video conferencing across company boundaries, and meeting the need to manage video delivery and quality.

Therefore, vendors pursue collaboration and acquisition strategies to compete in the regional market in a competent manner.

Competitive Factors

The players are focusing on product innovation, development of secure data transmission solutions, and enhanced integration capabilities to meet customer expectations.

Currently, the industry is in the growth phase and leading industry players are focusing on the acquisition of local companies in order to expand their product portfolio, customer base, and geographical presence.

For instance, in April 2019, Adobe, Inc. launched the new version of video conferencing software – Adobe Connect, which is equipped with screen sharing functionality. Furthermore, the company made the product available in cloud deployment model.

In January 2019, Plantronics had launched new Calisto portable USB speakerphones in order to make calls easily for mobile and remote workers. With 360 degree audio in a compact device, these devices transmit conversations with high quality audio and voice clarity even in remote locations.

Adoption of such devices set to drive the video conferencing market in near future.

Key Market Players

Some of the key market players who hold the major market share and disrupting the segment include:

Zoom Video Communications, Inc. (USA) develops a people-centric cloud service that transforms real-time collaboration experience. The Company offers unified meeting experience, a cloud service that provides a 3-in-1 meeting platform with HD video conferencing, mobility, and web meetings. Zoom Video Communications serves customers worldwide.

Cisco Systems Inc. (USA) is one of the prominent players and a well-established company in the enterprise video market. The company primarily aims to provide products and features that cater the specific needs of users.

In the enterprise video market, the company offers Cisco Video Conferencing products that include solutions such as Unified Communications solutions, Collaboration Meeting Rooms, Collaboration Endpoints, Cisco Jabber, WebEx Conferencing and Recording & Streaming solution.

Blue Jeans Network, Inc. (USA) provides cloud-based video conferencing services. The Company offers audio communications, video meetings, and conferencing services. Blue Jeans Network serves marketing, sales, human resources, healthcare, and educational sectors worldwide.

Polycom, Inc. (USA) develops, manufactures, and markets a line of video, voice, data, and web conferencing collaboration solutions. The Company provides enterprise video and voice communications end-points, network infrastructure, management products, product maintenance, and other professional services. Polycom serves customers in the United States.

Adobe Inc. (USA) is an American multinational computer software company headquartered in San Jose, California. It has historically focused upon the creation of multimedia and creativity software products, with a more recent foray towards digital marketing software.

Adobe offers Video Conferencing platform via Adobe Connect (formerly Presedia Publishing System, Macromedia Breeze, and Adobe Acrobat Connect Pro) is a suite of software for remote training, web conferencing, presentation, and desktop sharing.

All meeting rooms are organized into ‘pods’; with each pod performing a specific role (e.g. chat, whiteboard, note etc.) Adobe Connect was formerly part of the Adobe Acrobat family and has changed names several times.

Logitech International S.A. (Switzerland) manufactures personal computer input devices. The Company produces computer mice which help the user move the cursor around the computer screen quickly, trackballs, game controllers, keyboards, PC video cameras, and multimedia speakers. The Company sells its products worldwide.

Panasonic Corporation (Japan) manufactures electric and electronic products. The Company produces home appliances, car navigation systems, digital devices, computer peripherals, telecommunications, industrial equipment, and electronic parts. Panasonic has associated companies around the world.

Huawei Technologies Co., Ltd. (China) provides networking products and telecommunication solutions. The Company researches and develops internet access, transmission network, servers, storage, security, and other networking products. Huawei Technologies also offers business consulting, network integration, assurance, managed, learning, and global delivery services.

Avaya Inc. (USA) is an American multinational technology company headquartered in Santa Clara, California, that specializes in business communications, specifically unified communications (UC), contact center (CC), and services.

Serving organizations at 220,000 customer locations worldwide, Avaya is the largest pure-play UC and CC company, ranking No. 1 in CC and No. 2 in UC and collaboration. The company had FY19 revenues of $2.89 billion, 83% of which was attributed to software and services.

Strategic Conclusion

The Video Conferencing Platforms market is witnessing significant demand due to the sudden outbreak of the pandemic COVID-19 which has led to the adoption of the ‘work from home’ model and as Video Conferencing serves as the communication medium for business communications.

The Video Conferencing betters the communication quality as it offers several features such as file sharing, screen sharing and HD Audio and Video calls hence, video conferencing has turned out to be first-choice for communication by enterprises for the ‘work from home’ model.

As the quote goes “Every Good thing has a downside” the Video Conferencing solutions also has downsides in the form of Higher bandwidth requirement which leads to lower call quality and also issues in the Call audio and video quality.

As the world is embracing the new normal being created by the outbreak of the pandemic COVID-19, the ‘work from home’ model is set to become the preferred model by both the Enterprises and the workers as stated by Reports of Gartner that a March 30 survey of 317 CFOs and business finance leaders that found 74 percent of those surveyed expect at least 5 percent of their workforce who previously worked in company offices will become permanent work-from-home employees after the pandemic ends.

This situation is expected to fuel the growth of the Video Conferencing platforms market.

References

Appendix

PHEIC – Public Health Emergency of International Concern
SMEs – Small and Medium Enterprises
NASSCOM – the National Association of Software and Services Companies
ISP – Internet Service Provider
ONVIF – Open Network Video Interface Forum
WebRTC – Web Real-Time Communications
DPC – Data Protection Commission
GDPR – General Data Protection Regulation
CCPA – California Consumer Privacy Act