Video Conferencing Market to Hit $7.7 Billion By 2022
Video conferencing is being used to extend the reach of organizations across the globe by enabling real-time two-way audio and video communications. This has allowed companies large and small to close the gap placed by the limitations of geography and bring resources together to collaborate without having to deal with the hassles of business travel. As broadband deployments continue to increase and mobile technology is able to access the same speeds, more businesses are leveraging video conferencing solutions to communicate with local, national and international customers and vendors. And according to Credence Research, this will drive a 8.6 percent compound annual growth rate (CAGR) in the market from 2015-2022 for a value of $7.76 billion.
One of the biggest drivers in the video conferencing market is cloud technology, which has made it much easier for organizations to deploy the technology with minimal initial investment compared to legacy on premises conferencing systems. According to Credence Research, this will continue to grow the market for the foreseeable future. Cloud-based solutions are able to take advantage of existing hardware most businesses already have in place, such as personal computers, smart mobile devices and audio and visual equipment, such as monitors and speaker systems.
Enterprises are expected to be one of the fastest growing segments in video conferencing, as the technology is being integrated with collaborative solutions to become part of a comprehensive communications platform. But the healthcare and education industry are fast becoming the biggest adopters of video conferencing in order to introduce new levels of efficiency and address budgetary constraints. The report says healthcare and education are expected to emerge as the most promising segments in the market in the coming years.
The report also looks at multiple market segments based on deployment models, end-users, and cross-sectional study across different geographies, including hardware, software, services, markets, competition and challenges.
As for the competition, the SCOT (Strength, Challenges, Opportunities and Threats) analysis reveals market positioning and key developments by influencers and the impact they will have in the industry, which includes an in-depth competitive environment and value-chain analysis.
The adoption of video conferencing is also seeing new use cases by established industry segments, such as banking. Bank of America, for example, has what are called “robo branches” in Minneapolis, and two other in Denver that don't have any employees in them. They are basically ATMs on steroids. By using video conferencing, customers can go to these locations and carry out banking transactions or request information they can't get online. The success in the banking industry will likely encourage other segments to deploy the technology, further increasing the value of the video conferencing market.
Edited by Alicia Young