Video conferencing market ‘to expand by 2023’

Video conferencing market ‘to expand by 2023’ [Image: vm via iStock]

A new report has revealed that the video conferencing market is set to boost communication opportunities for SMEs around the world.

Transparency Market Research has found that common practices adopted by key video conferencing firms involve the formation of diverse partnerships with other regional players to expand their geographical presence. These companies are also rapidly moving towards cloud-based video conferencing for providing better services to end-users.

According to the researchers: “Companies are constantly trying to expand their geographic horizons in order to get the most out of the regionally diverse market opportunities.

“These expansion projects come with several price tags, including operations costs, something that the companies need to reduce to maintain a feasible business structure. At the moment, video conferencing offers one of the best solutions for that.”

Transparency Market Research added that the necessity to maintain communication between regional branches has urged global enterprises to “seek solid paths for it”. The research firm explained that video conferencing offers a better communication channel in a company’s hierarchy, as well as cheaper and more effective training methods for regional employees.

Trainers or managers are able to approach colleagues directly through video conferencing, which then allows for significant reductions in the costs for end-user training, customer service, conducting interviews and maintaining an overall network for assets to communicate through.

According to the research, the revenue generation for video conferencing globally is predicted to progress at a compound annual growth rate (CAGR) of 8.5 per cent up to 2023. This market is expected to be valued at $7.85 billion (£6.34 billion) by 2023.

Use of the cloud in video conferencing is predicted to contribute several key advantages to this market. This segment is expected to expand at a robust CAGR of 15 per cent to 2023.