Clear Focus: Video Conferencing to be a $6.4 Billion Market
Video conferencing is an industry that seems to be garnering more and more ink and notice, and with winter slamming just about every part of the country, it’s looking better and better. With travel being impacted almost daily and increasing numbers of workers telecommuting, the idea of a remote meeting instead of having one in person is growing in appeal.
Maybe that’s why a leading research company is so bullish on the growth of the industry. Transparency Market Research is out with a new report that sees video conferencing growing into a $6.4 billion business by 2020.
“The increasing need to lower operational costs and effective management of a global supply chain in the business sector are the factors driving the global video conferencing market,” the report notes. “In addition, increasing adoption of video conferencing services in the public sector is further expected to drive the growth of the market during the coming years.”
How much? The report says the global market for video conferencing equipment and services, in terms of revenue, was valued at $3.31 billion in 2013 and is forecast to grow at a compound annual growth rate of 9.36 percent during the period 2014 to 2020.
The research also looked at complementary services, and sees strong growth there as well.
“Based on deployment type, the on-premises video conferencing market held the largest share of around 80 percent in terms of revenue in 2013. Other deployment types, namely managed video conferencing services and cloud-based video conferencing solutions, are expected to grow at a significant rate during the period 2014 to 2020,” TMR says. “Factors such as industry shift from hardware-based to software-based solutions and a rising need to curtail infrastructure expenditure are leading to the growth of managed and cloud based video conferencing services.”
With increasing adoption of immersive telepresence systems and video conferencing infrastructure in Fortune 100 companies, researchers noted a substantial amount of revenue is also being generated in the on-premise video conferencing solutions segment. Plus, high priced end-points including HD displays, cameras, microphones and a dedicated video conferencing network have contributed to a huge proportion of the overall video conferencing market revenue.
In short, the industry is growing, and those who have a piece of it are expected to grow as well. The end result will be more choices at a lower cost for users overall.