The global video conferencing endpoint market was USD 2.27 billion in 2017 and is expected to grow significantly over the forecast period. Developing countries such as India, Indonesia, Argentina, and Mexico are driving the growth of endpoint products. Moreover, well-established companies, as a strategic step, are expanding their presence in different countries as the markets are witnessing a healthy return on investments. Instead of traveling and in-person meetings, discussions by the management are done using video conferencing.
Video conferencing witnessed strong growth and development between 1980 and 1999. Apart from Ericsson and AT&T, companies such as PicTel and IBM also began developing video conferencing solutions. CU-SeeMe was one of the well-known video conferencing solution in the early 1990s.
The market for video conferencing endpoints was estimated to be worth USD 18.8 billion in 2022, and it is anticipated to grow at a compound annual growth rate (CAGR) of 2.12% to reach USD 21.3 billion by 2028.
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As video conferencing technology was in the developing stage and witnessing lucrative growth, the International Telecommunications Union (ITU) initiated standards for video conferencing. The innovation in technology was improving the quality of voice and images due to increasing broadband speed. Many new companies were coming up with video conferencing solutions making the market competitive.
After the developing stage, the video conferencing solution market entered a maturity stage starting from 2000 till now. The evolution of technology, increasing speed of the internet and ITU standards have been the major factors due to which the market share of video conferencing solutions drastically increased. At present, video conferencing finds use in many industries such as finance, manufacturing, healthcare, education, and energy. Moreover, video conferencing is found to be resourceful in law firms, military, government organizations, associations and inter and intra-government communications.
In Detailed Segemnt Analysis:
The single codec appliance dominated the standard centric market by contributing 26.7% of the global video conferencing endpoint market share in 2017 and is expected to maintain its position over the forecast period. Single codec systems are easy to deploy and cost less than compared to multi-codec systems. Most of the top management meetings are conducted using conferencing endpoints. For instance, a sales vice president in the U.S discussing strategies to increase the sales in the market with country heads present in Germany, China, and France.
The government vertical dominated the global video conferencing endpoint market in 2017. The advantages of using video conferencing in the government sector have resulted in efficient use of workforce, enhanced work environment, cost-effective legal proceedings, and increased inter-departmental collaboration. For instance, most of the federal agencies and organizations such as NATO and IMF use video conferencing as a platform to communicate with the top government officials.
The healthcare segment is expected to grow at the fastest CAGR of 6.1% during the forecast period. The segment has witnessed many benefits associated with video conferencing. Doctors can easily communicate with patients and hospital staff in case of emergencies and guide them to solve the issue. Due to the fast-paced nature of this profession, medical professionals can now acquire their certifications using online educations and conferences. Other benefits of using video conferencing in healthcare are group training, sharing of knowledge, improved care for patients and cost saving.
Regional Analysis:
North America dominated the global video conferencing endpoint market by contributing 37.3% of the revenues in 2017 and is expected to maintain its position over the forecast period. The US is one of the most developed countries with the presence of rich markets in various industries. Sectors such as financial, healthcare, government, and education have already implemented the use of video conferencing systems. On the other end, Mexico too as a developing country is witnessing strong growth in the global video conferencing endpoint industry.
Europe video conferencing market occupied the second highest share in 2017. The major market in Europe comes from Germany, France, and the United Kingdom together contributing around 37.4% in 2017. Education, healthcare, and government majorly use endpoint system to connect with people across the globe. Moreover, sports, media, and entertainment industries are witnessing a demand for endpoint systems as these are the major markets widely spread across Europe. For instance, In France, Italy, and Spain, people are more active in sports, entertainment and media industry. The sports trainers’ use endpoint systems to discuss strategies with people in different locations.
Asia Pacific video conferencing endpoint market is expected to grow at the fastest CAGR of 6.6% over the forecast period. The demand for endpoint products in China, India and Southeast Asian countries is driving the market further. Japan and South Korea are technologically advanced countries so the penetration of this technology is high in these countries when compared to Indonesia, Malaysia, Australia, India, and China. The Southeast Asian countries such as Singapore, Malaysia, Thailand, and Vietnam are major markets for the healthcare industry. As a result, the demand for endpoint products is anticipated to increase in these countries.
Video Conferencing Endpoint Market Scope
| Metrics | Details |
| Base Year | 2022 |
| Historic Data | 2018-2019 |
| Forecast Period | 2022-2028 |
| Study Period | 2018-2028 |
| Forecast Unit | Value (USD) |
| Revenue forecast in 2028 | USD 21.3 billion |
| Growth Rate | CAGR of 2.12 % during 2018-2028 |
| Segment Covered | Component Outlook, End-User, Regions |
| Regions Covered | North America, Europe, Asia Pacific, South America, Middle East and Africa |
| Key Players Profiled | Cisco (Tandberg), Polycom, Huawei, ZTE, Avaya (Radvision), Lifesize, Vidyo, Starleaf, Kedacom |
Key Segments of the Global Video Conferencing Endpoint Market
Solution Type Overview (USD Billion)
- Standard Centric
- Multi Codec Appliance
- Single Codec Appliance
- Executive Appliance
- Service Attached
- Single Codec Appliance
- Reference Design Kits
- Do It Yourself (DIY)
Application Overview (USD Billion)
- Education
- Consulting
- Government
- Manufacturing
- Financial Services
- Healthcare
- Energy/Utilities
- Others
Regional Overview (USD Billion)
- North America
- U.S.
- Canada
- Mexico
- Europe
- France
- UK
- Germany
- Italy
- Russia
- Rest of Europe
- Asia-Pacific
- India
- Korea
- Japan
- China
- Southeast Asia
- Rest of Asia-Pacific
- Rest of the World
Frequently Asked Questions (FAQ) :
The video conferencing endpoint market size is expected to reach USD 21.3 billion by 2028.
The application of the video conferencing endpoint market Education, Consulting, Government, Manufacturing, Financial Services, Healthcare, Energy/Utilities and other.
Asia Pacific dominated the market for video conferencing endpoint market and accounted for the largest revenue share.
The major players are Cisco (Tandberg), Polycom, Huawei, ZTE, Avaya (Radvision), Lifesize, Vidyo, Starleaf, Kedacom
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The global video conferencing endpoint market is driven by many factors. Key factors such as new technologies, changes in regulations and increasing internet speed are primarily driving the market for video conferencing endpoint. These major factors are expected to boost the demand for the video conferencing endpoint products during the forecast period.
Adoption of cloud services
The implementation of the cloud has changed technology in various ways. Cloud services such as Software as a service (SaaS), Infrastructure as a service (IaaS), Platform as a service (PaaS) and Video as a service (VaaS) has been adopted by many end-user industries across the globe. Due to developments in technology and growth, companies are expanding their presence at multiple locations and cloud services finds a way to keep them connected. A large amount of information provided by these companies and end-use industries are stored on a cloud platform and can be accessed from any remote area.
The use of the cloud platform has changed the way video conferencing was done earlier. The investment cost for the server and the infrastructure has drastically reduced. VaaS delivers point-to-point and multi-point video conferencing capabilities over the internet protocol network. The service is offered based on subscription and pay as you go basis; this is an easy and convenient model for the individual and corporate users. VaaS is ideal for businesses that do not have infrastructure, budget and in-house technical expertise. Moreover, the VaaS support session initiation protocol (SIP) and H.323 standards and protocol easy to connect with other endpoints.
Increasing broadband speed
The transformation of broadband speed is one of the major factors that has caused the video conferencing market to grow further. Some countries are shifting from 3G to 4G spectrum, while developed counties such as Japan and South Korea are moving towards the 5G spectrum. As the market is moving forward with the advancement in technology and standardization step taken by the government, the demand for internet is increasing worldwide. Moreover, the telecommunication companies are working toward new technology implementation such as fiber-to-the-home (FTTH), where home and single business can have access to high-speed internet. Thus, the reducing infrastructure cost and increasing high-speed internet coupled with cloud services is expected to gain the market share for video conferencing endpoint industry.
According to the International Telecommunications Union, the number of internet users around the world has increased from 1,991.0 million in 2010 to 3,385.0 million in 2016 in developing and developed countries. Following is the list of top countries with number of internet users in 2010 & 2016,
Number of internet users in 2010 & 2016
|
Country |
2010 (Million) |
2016 (Million) |
|
China |
470.0 |
750.0 |
|
India |
92.0 |
390.0 |
|
Japan |
100.0 |
120.0 |
|
United States |
220.0 |
250.0 |
|
Mexico |
36.0 |
76.0 |
|
Russia |
62.0 |
110.0 |