Rising number of millennials and remote employees in the workforce spurs demand for video conferencing solutions
Date: Tue, 01/26/2016 - 19:29 Source: Frost & Sullivan
The North American conferencing services market is in a state of rapid transition as visual collaboration gains precedence over audio conferencing. Even as emerging video services are spurring market expansion, the commoditization of mature technologies is tempering growth. As a result, the hosted audio, web, video and managed video conferencing service segments will each experience varying growth rates over the next seven years.
New analysis from Frost & Sullivan, North American Conferencing Services Market finds that the market earned revenues of $4.5 billion in 2014 and estimates this to reach $5.9 billion by 2021 at a compound annual growth rate (CAGR) of 4.1 percent.
The increasingly distributed and remote workforce requires organizations to equip employees with feature-rich and easy-to-use tools, immensely widening the scope of the North American conferencing services market. Visual collaboration, in particular, is gaining traction.
“What was once a rudimentary component now holds serious weight in the minds of decision-makers across businesses,” said Frost & Sullivan Unified Communications & Collaboration Industry Manager Alaa Saayed. “As Millennials continue to make up a larger share of the workforce, video will become more pervasive and price points will drop with newer technologies, further fueling adoption.”
Although clear opportunities exist in the North American conferencing services market, several challenges affect revenues. Service providers are forced to compete with conferencing capabilities offered as part of unified communications bundles, limiting market potential. The usage of consumer-based and free conferencing solutions also cuts into the demand for professional-grade services.
Hosted and cloud video conferencing services will become popular as organizations look to avoid large capital investments in favor of subscription-based services. However, this anticipated shift to the cloud is also driving an influx of new solutions and providers into the sector, making it difficult for customers to identify the most suitable fit.
“Provider success in the conferencing services market, as in most other industries, is determined by both strategy and execution,” noted Saayed. “A timely response to changing customer demands and technology innovation will go a long way in maintaining competitive growth rates.”
As the market matures, attributes such as provider viability, experience, market reach and a broad portfolio of complementary solutions, will become critical for sustained results in the North American conferencing services domain.