The culture millennials have created in the workforce has introduced more collaboration and remote work. In order to implement these approaches, several technologies had to mature. In most cases, that means incorporating video conferencing (VC) into the business communications ecosystem. With VC now readily available on smartphones, tablets, PCs and propriety conferencing solutions, the market is experiencing growth.
The new analysis from Frost & Sullivan titled, “North American Conferencing Services Market,” forecasts the market will grow at a compound annual growth rate (CAGR) of 4.1 percent from 2014 to 2021. In 2014 the market generated revenue of $4.5 billion, and with the estimated CAGR it is expected to reach $5.9 billion by 2021.
Although enterprises used VC technology in the past, the premises based system were expensive to purchase and maintain, putting it out of the reach of the CAPEX and OPEX of many SMBs. However, carrying out a VC today only requires a web enabled communications or computing device and anyone can start collaborating with their colleagues no matter where they are.
In the North American market, conferencing services have been adopted by organizations big and small, which explains why the growth is not as dramatic as in other regions of the world that are just beginning to appreciate what VC can do for them. According to Frost & Sullivan, the hosted audio, web, video and managed video conferencing service segments will have varying degrees of growth rates throughout the forecast.
“What was once a rudimentary component now holds serious weight in the minds of decision-makers across businesses. 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,” said Frost & Sullivan Unified Communications & Collaboration Industry Manager Alaa Saayed.
As the analysis reported, visual collaboration is gaining traction because companies are giving their employees solutions so they can interact with each other seamlessly whether they are at the office or on location. A couple of the technologies simplifying the collaborative process with video is, cloud and unified communications (UC).
Both technologies are providing more options compared to legacy VC systems. This continues to cut demand from professional-grade services, limiting the market potential for that particular segment. The shift to the cloud is also introducing many new players that delivering options to everyone, and not just enterprise clients.
Saayed said, “A timely response to changing customer demands and technology innovation will go a long way in maintaining competitive growth rates.”
Companies in this industry will have to compete with innovations such as WebRTC, which provides a propriety and plugin free application to carry out conferencing on any web enabled device that has a browser with WebRTC capabilities.