Video conferencing is a technology that allows two or more users in different locations to conduct a face-to-face conversation with the help of computer networks to transmit audio and visual data. The rising demand for cloud based video conferencing solutions has become one of the key trends influencing the growth of video conferencing systems market. According to IDC, the number of users of video conferencing service in 2015 were 1,355 million, which is estimated to increase up to 1,740 million users with the CAGR of 9.88% during the forecast period 2016-2023. Adoption of video conferencing systems market is primarily driven by following factors:
- Increasing globalization of business and workforce decentralization
- Increasing focus on cost rationalizing technology
- Moving toward video conferencing system based on ip network
- Swift growth of internet.
Rising globalization of businesses and increasing decentralization of workforce has become the major opportunity for the video conferencing systems market globally. The increase in the usage of video conferencing and acceptance of virtual meetings over real meetings in the corporate world is due to the convenience of interacting without move associated with it for the business users working from different locations. Video conferencing systems are largely adopted by both large and small-scale industries as a tool to save time, cost and hassle of business travels. Video conferencing systems market has grown to a point where the technology offers high-quality audio-visual for long distance communication at a feasible price point for both large as well as small & medium-sized businesses. In addition, adoption of this technology has also aided to the emergence of new applications such as e-courts, e-health and online education. The major factors driving the global video conferencing systems market are increasing globalization of business and workforce decentralization, increasing focus on cost rationalizing technology, and swift growth of internet.
Video conferencing services avail capabilities to transfer data in high speed and to maintain communication channel with the users situated at different location. The proliferation of video conferencing equipment has seen a positive growth in industries like communication. . In emerging economies, the transformation in the corporate governance model from hardware-centred governance technique to software centred, results in expanding the video conferencing equipment market. Moving towards IP based video conferencing system from traditional ISDN based system is also one of the major drivers which has helped enhance the global video conferencing systems market. The IP video conferencing systems market is constantly driven by performance and cost advantages with higher reliability, and lower costs through low buy-in price and usage fees. On the other hand the ISDN video conferencing is quickly losing share to IP networks owing to its inability to seamlessly integrate with other applications. The increasing usage of internet day by day helps to increase the video conferencing systems market. In 2015, the number of internet users accounted to 3.185 billion, i.e. 43.4% of the total world population. The number of internet users is increasing 2.7% every year. This increasing usage of internet has become the major driver for the video conferencing systems market. The Requirement of high bandwidth and issues related to utilization and interoperability are some of the major challenges faced by the video conferencing systems market globally For video conferencing minimum of 230kbps of bandwidth for the upload (standard resolution) and 178MB for download per window added to the video call is required. If the video conferencing call has more than 2 users involved, the download requires additional 128 Kbps per each additional video window. This requirement of high bandwidth becomes the major challenge for the video conferencing systems market.
Source: OBRC Analysis
The video conferencing systems market is segmented on the basis of development and end-user industry. On the basis of development, the market is further segmented into:
- On-premise video conferencing
- Managed video conferencing
- Cloud-based video conferencing
On the basis of end user, market is further segmented into:
- Corporate Enterprise
- Healthcare
- Government and Defence
- Education
- Others
The revenue for the above industrial end user are specific to the video conferencing systems market. However, the total revenue of these end-user in general has been excluded from the scope of the report. Also, the total market revenue has been calculated by summing up deployment type segment.
Geographically, the global video conferencing systems market is segmented into:
- North America (U.S. & Canada)
- Asia Pacific (China, India, Japan, RoAPAC)
- Europe (UK, France, Germany, RoE)
- Rest of World
On the basis of revenue, in 2016 North America held the largest market share of global video conferencing systems market owing to the rising adoption of video conferencing services by the government and businesses. Asia Pacific video conferencing systems market is anticipated to advance at the CAGR of 8.90% during the forecast period 2016-2023. The video conferencing equipment has seen a high penetration rate in the developing countries, such as China and India.
The major market players of the global video conferencing systems market are:
- Adobe System Inc.
- Avaya Inc
- Blackberry
- Cisco System, Inc.
- Ericsson-Lg, Huawei Technologies Co. Ltd
- Intercall (West Corporation)
- Lifesize Communications
- Microsoft Corporation
- Panasonic
- Polycom, Inc.
- Sony
- Vu Telepresece
- Zte Corporation
Detailed analysis of these companies provided in this report comprises overview, SCOT analysis, product portfolio, strategic initiative and strategic analysis.
Acquisitions, innovation and mergers are the key strategies adopted by the market players to sustain in the market. For example: in 2015 the Adobe System, Inc. announced the acquisition of Mixamo, San Francisco, a 3D computer graphics technology company. Similarly, in 2016, Microsoft Corp. and LinkedIn Corporation announced a definitive agreement under which Microsoft acquired LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash.
Why to buy the report:
This report will:
- Provide you the business strategies adopted by market player such as, the definitive agreement between Microsoft Corp. and LinkedIn Corporation, in 2016, under which Microsoft acquired LinkedIn for $196 per share in an all-cash transaction valued at $26.2 billion, inclusive of LinkedIn’s net cash.
- Provide in detail the different segments such as by developments and end-users which affect the global video conferencing systems market.
- Provide you the patent analysis of the video conferencing systems market.
- Identify and understand the strength, opportunities, challenges and threat of the video conferencing systems market.
- Provide revenues of major players of the market such as Adobe System Inc. Blackberry and Cisco System, Inc.
- Provide you the various regulatory policies which affect the global video conferencing systems market.
How we are different from others:
At Occams we provide an extensive portfolio which is comprehensive market analysis along with the market size, market share, and market segmentations. Our report on global video conferencing systems market offers the longest chain of market segmentation covering major market segmentation based on products and end users. The report tracks the major market trends in the global video conferencing systems market such as rising demand of cloud based video conferencing solution. For each market segments covered in global video conferencing market report, we provide opportunity matrix, and DROC analysis, that enable the clear growth assessment across each market segment. The report discusses competitive landscape of the video conferencing system industry, with giving extensive strategy analysis of more than 15 companies. Moreover, the report discusses various models such as 360-degree analysis, See Saw analysis, and Porter five force model and so on. For the high-level analysis in the report we provide a comparative analysis of historic and current year data.
Key Findings of the global video conferencing systems market.
- Rising globalization of businesses and increasing decentralization of workforce becomes the major key opportunity for the video conferencing systems market globally.
- North America had the largest revenue share in 2016.
- Corporate enterprise segment is the dominating market due to rising implementation of these systems across small and medium enterprise.
- Acquisition is the key strategy adopted by the various market players of global video conferencing systems market.