The global web conferencing market was valued at $3.80 bn in 2016 and is forecast to grow at a robust CAGR of 10.0% between 2017 and 2024, culminating to global revenue of $8.82 bn by 2024.
Industry at a Glance
Globalization is stimulating the rising trade and business activities globally, which is anticipated to propel the web conferencing market growth significantly over the next few years. Escalating need for real-time communication coupled with overall trend towards outsourcing of IT and shift to cloud computing and SaaS has instigated companies to adopt web conferencing and collaboration solutions.
Snowballing adoption across varied application areas including BFSI, government, healthcare, retail and education is another factor driving the overall demand over the forecast period. In addition, as the number of application increase, companies emphasize on a more flexible deployment model leading to hybrid solutions and private clouds to meet the varying customer demand.
The industry is witnessing an upcoming trend of social media integration which is gradually evolving to become a meaningful business differentiator. With maturing products, more open application integration and API opportunities are emerging. Further, several benefits offered by web conferencing majorly including multiple user logins, event sharing, and online education are also expected to fuel market growth.
“Optimal Price Point (OPP) for Web Conferencing Service”
Estimated average web conferencing cost – $ xx globally. However, with improving access and availability of options, OPP and range of acceptable Prices (RAP) are going to change. We at Ameri Research continuously track these prices with our proprietary pricing model.
The market is highly influenced by the low cost quality service offered by vendors in the space. Companies leverage conferencing service providers as a key channel to reach a wider customer base. As a result, vendors offer competitive pricing in order to sustain in this highly competitive environment.
By type, the market has been segmented into on-premise and hosted. Hosted type segment accounted for more than 70% of the global revenue share in 2016 and is estimated to witness significant growth over the forecast period. This is majorly ascribed to the rising adoption of SaaS along with concerns related to security and privacy.
On-premise type segment is expected to grow at a CAGR of 12.1% over the forecast period which is attributed to the large scale adoption primarily across large enterprises who can install the web conferencing software on their own servers.
Organization Size Trends
By organization size, the market is classified into Small Medium Enterprises (SMEs) and large enterprises. SMEs accounted for more than 50% of the overall revenue share in 2015 which is accredited to the low-cost communication service offered by vendors for real time video conferencing. Large enterprises captured a significant portion of the market in 2016 and are expected to witness considerable growth over the next seven years owing to increasing adoption particularly to improve collaboration and productivity across geographically dispersed teams.
Based on application, the market is categorized into BFSI, government, education, retail, and healthcare. Among these, BFSI accounted for the majority market share in 2016 due to high product adoption to reduce costs, accelerate decision making, reduce travel, and improve customer service. Education is seen as an emerging application area primarily to deliver online education in schools and universities.
Based on region, the market is classified into North America, Europe, Asia Pacific, Latin America and Middle East & Africa. North America emerged as the dominant segment and accounted for majority market share in 2016 owing to growing emphasis on employee mobility in the region. Asia Pacific is anticipated to exhibit the highest growth over the forecast period on account of rapid rise in number of organizations in the region.
Growth Drivers & Restraints
Prominent growth drivers residing in the global web conferencing market include advent of team collaboration tools, escalating adoption of video communication service, increasing penetration across varied application areas, product simplification and enhanced user experience, and elevating demand for smart workflow. Growth in the market is also led by growing focus on improving customer service, enhance employee mobility and single point of access to multiple communication applications.
Merger & Acquisition Insights
The industry is very competitive in nature with a number of well-established players governing the market. Mergers and acquisitions do not form a part of the primary growth strategy for companies in this space. However, there have been some mergers in the past primarily to respond to customer needs efficiently. For instance, Siemens set up a strategic alliance with Microsoft in 2005 in order to set up joint global sales and marketing activities.
Top Players & Company Share
Leading industry players include Cisco WebEx, Elluminate, Genesys Meeting Center, GoToWebinar, IBM Sametime, Oracle Beehive, and Skype. Other players in the industry are ACT Conferencing, Adobe Connect, BigBlueButton, Calliflower, Epiphan Systems, InterCall, Mikogo, Netviewer, OmNovia Technologies, PowWow365, RHUB Communications Inc., and Starlight Networks StarLive.
Web Conferencing Market, by Type (Revenue, USD Million)
Web Conferencing Market, by Organization Size (Revenue, USD Million)
- Large Enterprises
Web Conferencing Market, by Application (Revenue, USD Million)
Web Conferencing Market, by Region (Revenue, USD Million)
- North America
- Asia Pacific
- Latin America
- Middle East & Africa
- Saudi Arabia