Research shows growth in video market
The demand for video to support communication and collaboration is growing. As technology continues to evolve, providing easier access to innovative solutions, and remote working creates more dispersed teams across the globe, video is becoming more popular than ever.
Research from the Synergy Research Group, which provides quarterly market sizing and segmentation data for enterprise collaboration markets, shows the extent of this growth. According to Synergy, the Q1 video collaboration and conferencing space has grown by 10% year over year, to reach a value of more than $1.5 billion. Synergy found that the evolution in the market is mainly being driven by two small but compelling segments: Video as a Service and USB video conferencing.
These two areas grew by a rate of well over 40% in the evaluated period. Other high-growth segments for the industry include things like in-room content sharing and collaborative whiteboards.
Aside from various high-growth segments like VaaS and USB, the video environment remains strong overall. Synergy found that traditional single codec systems for collaboration rooms are still a foundation of the market, accounting for around 25% of all spending, and growing by a rate of about 8%. Currently, Poly and Cisco are leading the market by a large margin for video conferencing and dedicated video desktop segments. On the other hand, LogMeIn and Cisco are the current leaders in conferencing solutions as a service.
Among the list of major vendors in the video conferencing space, Zoom currently celebrates the fastest rate of growth – which may not be much of a surprise for those tracking the company’s success after its IPO. This was of course before the Mac security flaw became news. Zoom is followed by Logitech and BlueJeans. More traditional vendors of video products are also taking their first steps into the newer conferencing and collaboration segments too. For instance, Poly has quickly established itself as one of the three highest-ranked vendors for USB video conferencing.
In the next five years, Synergy believes that the annual growth of video conferencing and collaboration tools will approach around 10%, with higher spending in all geographic regions. The two stand-out segments in this space are likely to stick with USB video and VaaS, which may make up over a third of the market by 2023.
Synergy found that the market for video is continuing to evolve at a rapid pace, transforming from single codec systems to more agile and advanced USB video rooms and solutions delivered by VaaS on the cloud. The wide range of entry points into video is helping vendors to target the rising demand in the smaller end of the video market too.
According to the Synergy Research Group founder and chief analyst, Jeremy Duke, the VaaS and USB solutions are also gaining traction with enterprises and mid-market companies too. The fact that Zoom has doubled in size year over year is an excellent insight into just how much demand there is for the right video solution. It’s also an insight into the kind of growth we’ll see in the years ahead.