Videoconferencing Market Forecasted to Reach $4.48 Bn
With communications between teams being such an important part of daily workplace activities, it’s no wonder that the enterprise videoconferencing market has experienced large gains in recent years.
According to a recent paper from Credence Research, “Enterprise Video Conferencing (On-premise, Cloud-based and Managed Services) Market - Growth, Share, Opportunities, Competitive Analysis and Forecast 2016 - 2023,” the videoconferencing market reached a global value of $2.49 billion in 2015. That value, the research firm says, could reach as much as $4.48 billion by the end of 2023. In that nine-year forecast period between 2016 and 2023, the compound annual growth rate for such an increase would be 7.5 percent.
The rising value of the global market contrasts the primary reason that companies appear to prefer videoconferencing over traditional means of interaction such as in-person meetings. All businesses want to lower their expenditures, so many have begun to look at videoconferencing as a way around lengthy, costly travel. Credence has more on that phenomenon:
“Videoconferencing becomes a viable solution for organizations to organize online conference thereby eliminating the costs related to travel and accommodation. Consequently, many organizations have already adopted videoconferencing solutions for cost-reduction and effective collaboration among their teams,” the research firm notes in a summary of its report.
“Likewise, enterprise videoconferencing acts as a boon for business entities having multiple geographical locations requiring frequent collaboration,” it continues.
That comment makes it clear that organizations can use conferencing as a way to skirt meetings between company employees and meetings with outside entities such as investors or partners. Enterprises now exist as much in the digital world as they do in the physical world. It is easier than ever for them to have a globally-dispersed workforce that can cooperate as if they worked side-by-side. It is also easier than ever for heads of business to cooperate with corporate partners with thousands of miles between them.
Multiple vendors have taken advantage of this shift in workplace tactics, although it is notable that a handful of high-profile vendors collect about 60 percent of the market’s revenue. Those prominent players include Avaya, Cisco, Huawei, Microsoft, Polycom, Vidyo, and ZTE. They and their competitors still make many on-premise products and have also focused their attention on the cloud. In this space of intense competition, the use of cloud-based systems can be attractive to those vendors without a lot of existing capital and those customers without a lot of cash to spend.
Everything feeds back into companies’ collective desire to save money. Of course, since everyone competes in price, the vendors listed above must then create impressive products to sway the customer. There will be no shortage of attempts to complete that task, assuming Credence is correct in its research. Videoconferencing is here and expected to stay, funneling the words and actions of companies across the world.
Edited by Alicia Young