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Embracing the New Normal of Remote Working: Analysis of the Global Video Conferencing Equipment Market
Market News

Embracing the New Normal of Remote Working: Analysis of the Global Video Conferencing Equipment Market

Even if the epidemic slows down, video conferencing will have the opportunity to become the new normal in the future. Although the relevant system equipment manufacturers have suffered the impact of the epidemic, they are actively grasping the turning point of the industry.
Published: Apr 22, 2022
Embracing the New Normal of Remote Working: Analysis of the Global Video Conferencing Equipment Market

The closure of many offices around the world and the ensuing teleworking and distance learning as new forms of communication have led to a proliferation of conferencing solutions. Businesses, educational institutions, and public authorities are looking for effective ways to help employees and students stay connected and productive working from home, and as organizations need to go online quickly to keep operations running, they are looking for easy-to-use video conferencing solutions to replace the physical office.

Development of the Global Video Conferencing Market:

In 2020, under the influence of the COVID-19 epidemic around the world, various industries and offices have adopted emergency measures for remote working. With the epidemic lasting into 2022, and people needing to coexist with the epidemic, remote working or teaching has gradually evolved into a new normal. In addition to reducing or freezing a company’s budget for personnel and foreign travel, various agencies and organizations have reduced all visits to customers. To maintain operations and exchanges between organizations, they have instead adopted sophisticated communications equipment network systems.

With cloud trends and the introduction of VCaaS (Video Conferencing as a Service), the market is expected to grow. As the demand for remote and global work models grows, the service add-ons of the past may not be able to load, and more manufacturers are moving services to the cloud. This indirectly promotes the demand for video conferencing solutions, and the purchase of systems by enterprises or individuals is increasing. The growth rate of the global video conferencing cloud platform will continue to grow, and is expected to reach 25.2 billion US dollars in 2023. The estimated video conferencing equipment market size the annual growth rate increased from 5.9% in 2019 to 10.5% in 2020, and the output value reached as high as 3.38 billion US dollars. The global video conferencing market size is expected to grow at a CAGR of 11.4% during the forecast period, reaching a value of USD 9.95 billion by 2028.

With the increase of globalization, people are cooperating more and more frequently across extensive networks. When there is a need for face-to-face communication, to eliminate geographical barriers, reduce travel expenses, increase efficiency and reduce costs, video conferencing equipment is being used more extensively and the global market has grown steadily in recent years. The growth of cloud services has also led to an increase in the number of video conferencing software/platform vendors. In addition to the world's large cloud platform vendors such as Amazon AWS, Google, and Microsoft, emerging vendors such as Zoom have also attracted attention. Sensing that the system equipment market is developing towards cloud services and collaboration networks, these companies have launched cloud video conferencing equipment and have begun to support cloud software.

Development of Video Conferencing Equipment Products:

The video conferencing equipment market, which was stable after the COVID-19 epidemic, is facing new challenges. Governments around the world have adopted social distancing policies in response to the epidemic, and the demand for long-distance communication services to facilitate working from home and taking online classes has greatly increased. Schools at all levels are looking for simple and convenient video conferencing services, and manufacturers have successively launched free services to meet their needs. Manufacturers of cloud video conferencing solutions that adopt a subscription-based business model also offer free registration and use. In addition to improving brand image and visibility, they can rapidly expand the number of users, while fostering usage habits and user reputation. As the epidemic slows, the number of users of free systems will gradually convert to paid users, and business opportunities will increase significantly. On the hardware equipment side, the sales of general video conferencing-related equipment such as live webcams, teaching microphones, headset microphones, and other products has increased. The demand for not only personal use, but also commercial-grade equipment has increased significantly.

In terms of the overall market size, the global video conferencing equipment market was estimated to exceed US$3 billion in 2019. In 2020, various agencies and organization were affected by the epidemic and increased their investment in video conferencing systems and equipment. Even with the epidemic slowing down, video conferencing has become the new normal, and it is expected that the global video conferencing equipment market will continue to expand.

Innovations in Video Conferencing Equipment:

AI technology has become a must-have technology in video equipment

The video conference camera is the core device in video conference equipment. In terms of hardware specifications, 1080p FHD video resolution has become the mainstream standard, but more and more 4K optical lens products will be available in the future. In addition, a 120-degree wide viewing angle or 90-degree field of view plus mechanical pan, tilt, or adjustment will also become a basic configuration in product lines. Video conferencing cameras with integrated audio are limited by the need to maintain a certain minimum distance between the lens and the person speaking, so are usually limited to a small area of less than 6 users. AI technology that incorporates additional functions, such as auto-focus, light control, background blur, and skin-beautifying functions is loved by users and has become the focus of various companies wishing to distinguish their brands.

In terms of audio, in addition to noise reduction and echo cancellation technology, some manufacturers integrate sound detection and automatic portrait tracking and positioning technology, so that the lens can automatically lock and zoom in on the speaker. These video conferencing solutions make meetings go more smoothly and are becoming standard equipment, as manufacturers accelerate the integration of more AI image and sound processing technologies. The integration of technologies such as voice control and voice assistant, not only enhances the added value of products but also improves and provides users with a better experience.

More and more manufacturers are investing in the development of video conferencing collaborative whiteboards that integrate cameras, microphone arrays, and conferencing software operating systems. In China's market, integrated large-size tablet solutions for applications such as conferences, health monitoring, and remote learning are being used. It is expected that materials and touch technology will be further improved in the future to integrate inputs including for mobile phones, tablets, and computers.

Market Trends of Video Conferencing Equipment:

Rapid growth in cloud demand prompts more industry manufacturers to form alliances

For users, the interoperability of software systems is very important. When users need to discuss business with external customers or partners through video conferences, if the software systems of the two parties cannot communicate with each other, the customer's use intention will be reduced.

In addition, with the popularity of personal electronic communication devices and the Internet, the focus of the video conferencing market has shifted from highly centralized and locally deployed system equipment to decentralized architecture and cloud-based cloud video conferencing services. In other words, if you need to use video conferencing urgently in response to the epidemic, you need a cloud video conferencing service that can be installed and used immediately, rather than a system that requires a lot of deployment time and costs. Therefore, customers will base their choices on the convenience and timeliness of the service. Video conferencing equipment manufacturers have adopted strategic alliances to change the past model and move towards cloud and subscription services. Accelerating the entry into the cloud ecosystem and improving the functional technology and stability of key products will become the key for manufacturers to gain a foothold in the market.

Published by Apr 22, 2022 Source :

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