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.
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. As the epidemic lasts until 2022, people need to coexist with the epidemic, and remote working or teaching has gradually evolved into a new normal. In addition to reducing or freezing the budget of personnel and foreign travel, various agencies and organizations have reduced the actual visits to customers. Instead, they have adopted sophisticated network equipment to maintain operations and exchanges between organizations through related equipment and 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 also indirectly promotes the demand for video conferencing solutions, and the purchasing power of enterprises or individuals increases. The growth rate of the global video conferencing cloud platform will continue to grow, and it is expected to grow to 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.
The development of globalization makes people cooperate frequently in different places. When there is a need for face-to-face communication, to eliminate geographical barriers and reduce travel expenses, under the two driving forces of operational efficiency and cost considerations, the global video conferencing equipment market has grown steadily in recent years. With the growth of cloud services, the number of video conferencing software/platform vendors has increased. 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 needs, it launched cloud video conferencing equipment and began 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 such as working from home and taking 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. In the future, when the epidemic slows down and the free model stops, the conversion rate or the number of users from free users to paid users will have the opportunity to 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 have increased. Not only personal users but also the demand for commercial-grade equipment has increased significantly.
In terms of the overall market size, the global video conferencing equipment is estimated to exceed US$3 billion in 2019. In 2020, various agencies and organizations will be affected by the epidemic and will strengthen investment in video conferencing systems and equipment. After the epidemic slows down, video conferencing has become an office The new normal, so 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 the video conference equipment. In terms of hardware specifications, 1080p FHD video resolution has become the mainstream standard specification, and there will be more and more 4K optical lens products 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 the product line. The video conferencing cameras with integrated audio are limited by the need to maintain a certain distance between the lens and the person, usually limited to a small area of audio under 6 seats. As for the AI technology that originally only belonged to additional functions, such as auto-focus, light control, background blur, and skin-beautifying functions, it is loved by users and has become the topic of differentiation focus of various brands products.
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, making the meeting go more smoothly, which will drive this function to become a Video conferencing solution cameras are standard equipment, and manufacturers have to accelerate the integration of more AI image or 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.
In addition, more and more manufacturers are investing in the development of video conferencing collaborative whiteboards that integrate cameras, microphone arrays, and conferencing software collective operating systems. In China's market, we have launched integrated large-size tablet solutions for applications such as conferences, health monitoring, and remote learning. It is expected that materials and touch technology will be further improved in the future to integrate inputs including 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 provider that can be installed and used immediately, rather than a system equipment provider that pays a lot of deployment costs and time. Therefore, the convenience and timeliness of the service are the basis for customers to choose. Therefore, the 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.
