The majority of companies operating in the global video conferencing market are focused on expanding their footprint through mergers and acquisitions. In order to gain traction across emerging markets, the established companies seek collaboration with prominent regional players, finds Transparency Market Research (TMR) in a new study. Riding on similar strategies, companies such as Microsoft Corporation, Avaya, Inc., Polycom, Inc., Huawei Technologies Co., Ltd., Vidyo, Inc., Cisco Systems, Inc., Adobe Systems, Inc., InterCall, ZTE Corporation, and Lifesize, were able to strengthen their position in the global video conferencing market.
According to TMR, the global video conferencing market is forecast to report a CAGR of 8.5% between 2014 and 2023. Expanding at this rate, the market is poised to reach US$7.85 bn by the end of 2023. The market was valued at US$3.69 bn in 2014. Regionally, the market in North America emerged as the dominant segment in 2014 with a revenue of US$1.38 bn. By end-use industry, the corporate enterprises segment led the market with a share of 65.4% in 2014.
Deployment of Video Conferencing to Increase as Companies Look for Technologies to Fuel Expansion Goals
“Leading companies operating in the global video conferencing market are aiming to expand their geographic reach to get most out of the untapped opportunities across developing countries,” said a lead TMR analyst. With these expansion strategies companies are focusing to reduce operational cost in order to maintain a viable business structure and video conferencing helps provides the best solution for the same.
For businesses to pace up, constant communication between their regional branches is deemed necessary. Video conferencing not only offers a comprehensive communication channel for the company’s hierarchy, it provides cheaper and more effective medium for training regional employees. Furthermore, the technology is designed to enable managers and trainers approach their colleagues and peers easily through video conferencing. It also ensures significant reductions in cost incurred for customer service and end user training.
Growth of Telemedicine Market to Provide Novel Opportunities for Implementing Video Conferencing
The market is also projected to gain from the increasing telemedicine expenditure. Currently, the developed telemedicine market in Europe and North America is witnessing strong growth. Due to the presence of well-established IT infrastructure in the healthcare sector, it is possible to easily integrate video conferencing solutions, thus creating robust opportunities for the growth of the video conferencing market. Besides this, favorable government policies will support the market’s growth as well.
Adoption of Video Conferencing across SMEs to Help Mitigate Challenge Posed by High Initial Investment
Video conferencing requires high initial investment, which had until now kept it beyond reach of small- and medium-scale enterprises. However, SMEs constitute a significant share in the businesses run around the world. This, alongside the advent of cloud-based video conference will help the market mitigate this challenge.
Due to the recent advancements, SMEs can easily avail services from vendors offering cloud-based options. This has helped expanding the client based of video conferencing service providers. However, larger companies might still prefer maintaining in-house video conferencing practices.
The review is based on information published by TMR in a report, titled “Video Conferencing Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2015 - 2023.”
The report segments the global video conferencing market as:
Video Conferencing Market, by Deployment Type
Video Conferencing Market, by End-use Industry
- Corporate Enterprise
- Government & Defense
- Others (Manufacturing, Retail and Media & Entertainment)
Video Conferencing Market, by Geography
- North America
- Asia Pacific
- Middle East & Africa (MEA)
- Latin America
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