Web Conferencing Market Size, Share & COVID-19 Impact Analysis, By Component (Solution and Services), By Deployment (Hosted Web Conferencing, On-Premises Web Conferencing, Managed Web Conferencing and Software-as-a-Service (SaaS)), By End-use (Education, Government, Healthcare, IT and Telecommunication, BFSI, Manufacturing, Media & Entertainment, and Others), and Regional Forecast, 2020-2027

The global web conferencing market size was valued at USD 3.62 billion in 2019 and is projected to reach USD 10.46 billion by 2027, exhibiting a CAGR of 14.3%. North America dominated the global web conferencing market share of 51.1% in 2019.

The market is expected to witness fast-paced growth during the forecast period. Increasing demand for real-time communication solutions from the end-use industries such as IT and telecommunication, government, and education is likely to boost the market growth. 

The market is expected to experience a quantum leap owing to the dispersed workforce, closing of educational institutes, and other factors due to the mandatory lockdowns imposed by governments across the world to mitigate the risk of novel Coronavirus.

Proliferating Demand for Unified Conferencing Solutions Amid the COVID-19 Pandemic to Aid Growth

According to a survey by Owls Lab in 2018, 56% of the companies allow remote work to their employees. Whereas, the remaining 44% are likely to allow remote work. The above data is attributed to the pre-COVID 19 scenario which shows that there was a significant adoption of conferencing and collaboration tools even before the pandemic.

However, post the COVID-19 outbreak, the conferencing service has seen a proliferating demand across numerous industry verticals. The workforce is leveraging remote collaboration tools, messaging platforms such as Slack and web conferencing software such as Microsoft Teams, Zoom, and Cisco WebEx among others. According to the Wall Street Journal in April 2020, Zoom Video Communication, Inc. is expanding its cloud computing vendors to address the proliferating demand for remote conferencing amid the COVID-19 pandemic.

LATEST TRENDS

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Bring-Your-Own-Device (BYOD) to Replace Traditional Communication Practices

Bring-Your-Own-Device (BYOD) trend is one of the most widely adopted web conferencing market trends. An enhanced BYOD solution provides a complete platform for collaboration applications such as application sharing, conferencing, video, voice, file sharing among others. Maintaining an agile workforce for high-level productivity drives the demand for flexible BYOD and collaboration tools. Organizations are trying to achieve their business goals by implementing BYOD and high-performance conferencing tools.

WebRTC to Become a Cornerstone Technology for Conferencing Services

Web Real-Time Communication (WebRTC) technology is anticipated to experience a high growth trajectory in the coming years. Globally, there is an increasing demand for user-friendly and cost-effective real-time conferencing and communication solutions from the end-users. One of the significant applications of WebRTC is Google Meets (or hangouts). Similarly, Facebook has also incorporated WebRTC in its Facebook Messenger.

DRIVING FACTORS

Increasing Adoption of Unified Communication as a Service (UCaaS) to Drive the Market

Unified Communication as a service (UCaaS), eliminates the need for on-premise equipment and enables the business to run the applications on the cloud. UCaaS has elevated the level of online conferencing and communication services. Furthermore, enterprises have started leveraging increased functionalities such as chat; file sharing, whiteboard, video and calling, and screen sharing among others within a web conferencing solution. With UCaaS technology, mobile devices can be used to monitor meetings, set up a mobile call center and the app can serve as a single source of mobile, desk, and desktop information. This will support the growth of this web conferencing market in the coming years.

Growing Demand for Insight-driven Mobile Learning, Webinars, and Mobile Collaboration to Aid Market Growth

Live webinars play a vital role for governments and businesses as the enterprises intend to build stronger customer relationships. Across webinars, e-learning, and other use cases, the demand for web-based conferencing has extended beyond the traditional offices which also addresses the requirement of individuals from different locations. Conferencing solutions integrated with analytic capabilities can help users derive meaningful insights. 

For instance, Adobe, Inc. offers a software suite “Connect9” for remote training, presentation, meetings, and desktop sharing that delivers insight-driven cooperation for mobile-to-mobile collaboration. Such advanced communication technology is expected to augment the web conferencing market growth.

RESTRAINING FACTORS

Lack of Security and Data Privacy is Likely to Restrict Market Growth

Lack of security and data privacy is observed to be a significant market restraint. This software includes not only voice and video, but it also includes file and application sharing, desktop sharing consisting of confidential information. As a result, security becomes an essential component for the end-user. The inability of the market key players to provide robust security solutions is likely to restrict market growth.

SEGMENTATION

By Component Analysis

Web Conferencing Solutions to Account for the Maximum Market Share Over Services

Based on the component, the market is divided into solutions and services. The solutions segment is expected to account for a major web conferencing market share throughout the forecast period. Some of the software offered by major market players are Zoom meetings and chat, video webinars, Cisco Systems Webex suite, and Adobe’s Acrobat Connect Pro among others. This software is accessible anywhere, anytime, and virtually on any device.

The solutions offer application & desktop sharing, improved productivity, and help the enterprises to conduct employee training easily. These are some of the significant factors that drive the demand for these solutions. Web based conferencing services including professional and managed services are expected to have significant growth in the coming years.

By Deployment Analysis

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SaaS-based Web Conferencing to Exhibit More Demand Owing to the Growing Cloud Adoption

Based on deployment, the web conferencing market is segmented into hosted, on-premise, managed and software-as-a-service (SaaS). The hosted segment is expected to hold a major market share during the forecast period.

In the hosted or cloud deployment, the solution is hosted by vendors in their own data centers and provided to customers on a multi-tenant cloud platform through the internet. The hosted/ cloud services can be offered either as a usage-based (cost per user per minute) or subscription-based.

The hosted deployment facilitates real-time collaboration capabilities and does not require any prior installation of software in some cases for meeting participants. For instance, Oracle Corporation provides iMeeting, hosted, or cloud-based solutions that deliver real-time collaboration by leveraging public internet and corporate intranet.

SaaS model is a web-based model and is hosted by the service providers on the cloud. The SaaS model offers more value-added services to the users. These deployments offer reduced cost of provision and allow rapid deployment of product services and software upgrades. These factors contribute to the fact that the software-as-a-service model is likely to gain significant demand during the forecast period.

On-premise deployment is available as licensed software installations on servers; it is deployed on the company’s firewall and managed by the company. Further, managed services are dedicated to a single customer and fully managed on-site or remotely by a service provider. These services are adopted by users which require more control over meeting security and content. However, managed services are at a nascent stage and are expected to have a notable growth.

By End User Analysis

Amid Covid-19 Pandemic, Education Industry to Generate Massive Demand for Unified Communication Solutions

By the end-user, the web conferencing market is divided across industries including education, government, healthcare, IT and telecommunication, banking, financial services and insurance (BFSI), manufacturing, media & entertainment, and others. The others segment comprises retail, transportation among others.

The IT and telecommunication industry is forecast to hold a major share in the global market. Frequent traveling expenses are something that small businesses try to optimize. Leveraging web conferencing empowers them to expand business activities by optimizing travel expenses.

Large enterprises having their presence in multiple geographic locations are more inclined towards leveraging web conferencing services for sales & marketing purposes. Due to the spread of novel coronavirus, the employees are dispersed across multiple locations; reasons why they require frequent communication and collaboration. Web services enable remote employees to seamlessly collaborate and communicate. These factors are likely to augment the market growth.

The education industry is anticipated to exhibit a remarkable growth rate during the forecast period. According to data published by UNESCO in May 2020, 100 countries have not confirmed the date for schools to reopen, 65 countries are planning to partially open the schools and 32 countries announced that they are likely to end the academic year online. The statistics show that the education industry is likely to provide lucrative market opportunities for key market players in the COVID-19 scenario.

Similarly, the Government is expected to be a significant user of conferencing services. Communicating with other state governments, and addressing the people of the country, arranging online political meetings and other defense applications are some of the key factors that fuel the demand for web conferencing software across the industry.

Banking, financial services, and insurance (BFSI), healthcare are some of the high growth potential end-use industries for conferencing services. Account verification, coordination with other branches, health-aware sessions for citizens, health representative education & training are some of the applications that fuel the demand for collaboration solutions.

REGIONAL INSIGHTS

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Asia Pacific Expected to be Competitive with a High Number of Telecom Operators and Conferencing Service Providers

Geographically the web conferencing market is analyzed across five major regions including North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America.  The regions are further categorized into countries.

North America is a mature and well-established market and is forecast to continue its dominance during the forecast period. According to the Computing Technology Industry Association 2018, there are approximately 525,000 software and IT companies in the United States in which 40, 500 are techno-savvy startups. Most of the high-tech companies have significant global expansion and collaboration across the globe. These are some of the factors that drive the market across the region.

The market in Asia Pacific is expected to overtake Europe by the end of the forecast period. The region is expected to be a relatively competitive market. The market is observed to be saturated with telecom operators and conferencing service providers. China and Japan contribute a significant market share in the regional market. The spread of novel coronavirus has surged the demand for collaboration services in India and many other countries across the region.

Europe is expected to exhibit a moderate growth rate during the forecast period. Wherein, the Middle East and Africa is forecast to have significant market growth in the coming years. Growing data traffic, improved internet connectivity and substantial ICT spending are some of the important aspects that support the market growth in the region. Latin America is projected to have a steady market growth. Lack of skilled workforce, and limited workforce, inadequate ICT spending is likely to restrict the market growth in the region.

KEY INDUSTRY PLAYERS

Market Players to Extend Enhanced Capabilities to Existing Products to Promote Their Services

The market players such as Cisco, Zoom Video Communications, Inc. intend to integrate enhanced technologies such as artificial intelligence, and machine learning among others with their existing product portfolio to promote their services in the market. Technological advanced product portfolio empowers the market players to strengthen their market position and drive brand awareness. For instance,

• January 2020 – Cisco Systems, Inc. introduced new AI-powered voice intelligence capabilities to WebEx meetings. Webex's assistant for meetings is a digital in-meeting assistant for enterprises.


• July 2019 - Zoom Video Communications, Inc. enhanced its video first unified communication platform. Zoom’s unified communications platform will enhance user experience by using advanced technologies like artificial intelligence, face detection, machine learning, location-based services, and personalization.

LIST OF KEY COMPANIES PROFILED:

• Adobe, Inc. (California, United States)


• Alphabet, Inc. (California, United States)


• Arkadin (Singapore)


• AT&T, Inc. (Texas, United States)


• Bridgit (Ontario, Canada)


• Cisco Systems, Inc. (California, United States)


• Citrix Systems, Inc. (Florida, United States)


• Communiqué Conferencing, Inc. (Reston, Virginia)


• Fuze, Inc., (Massachusetts, United States)


• Glance Networks, Inc. (Massachusetts, United States)


• IBM Corporation (New York, United States)


• Microsoft Corporation (Washington, United States)


• Zoom Video Communications, Inc. (California, United States)

KEY INDUSTRY DEVELOPMENTS:

• February 2020 – Fuze, Inc. announced integration with Microsoft Teams. The integration of Fuze and Microsoft teams will enable the users to organize meetings with ease. With this integration, the users can launch calls to contact, extensions, or numbers from a Teams conversation with enhanced quality.


• March 2019 – Bharti Airtel Limited collaborated with Zoom Video Communications, Inc. to launch high quality unified communications service offering a secure and integrated platform for web & video conferencing, and high definition (HD) audio. The solution caters to the unified conferencing demands of all businesses.

REPORT COVERAGE

The Web Conferencing Market report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that

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