ID: MRFR/ICT/9133-HCR | July 2021 | Region: Global | 90 pages
The video as a service market size is expected to register arobust CAGR of 8.2% during the forecast period and is projected to reach a market value of USD 6.79 billion by 2027.
Video as a service or VaaS enables users to communicate through video calls over the Internetto utilize providers’ infrastructure. It connects two or more people that reside over their individual locations by transmitting static images, full-motion video content, high-quality audio, and text from one node to another. They are usually cloud-based services, meaning they can easily deploy video conferencing platformswithout the need for high-end infrastructure at the consumer end. VaaS provides some benefits,including lower investment costs, availability of continuous technical supportfrom VaaS providers to resolve issues faced during the utilization of services, minimal dependency over the in-house technical team, highly scalable to cater to the rising need for video collaboration needs, among others.
Some of the factors that drive the video as a service market comprise a rapid increase in the number of Internet users, an increasing need for real-time communications services, and the rising use of cloud-based solutions and services. At the same time, the rising concern over data privacy and securityis hampering this growth. Nevertheless, the growing BYOD trend among SMEs is expected to create lucrative opportunities for players operating in the global video as a service market.
The outbreak of novel coronavirus initially in China’s Wuhan province,which later spread across the globe,created an unprecedented situation for government bodies to control the spread of the deadly virus. This prompted authorities to impose stringent policies such as lockdowns, movement restrictions, and shutting down of industrial facilities to prevent the viral spread. However, this enforcement of policies rapidly shifted from traditional business activities to digital platforms for business continuity during such unprecedented situations. This enabled VaaS providers to flourish and scale their operations to cater to the rising demand. Furthermore, this rapid adoption of VaaS has helped several organizations save on their expenditures incurred over business travels without hampering business activities, including client engagement, marketing campaigns, andcorporate communications.
This growth trend is expected to continue even after the pandemic situation relaxes owing to the increasing adoption, rise in IT expenditure budgets, significant savings on employee turnover, increased productivity, and the availability of Internet connectivity at remote places. Moreover, it is observed that people are still maintaining social distancing and avoiding gatherings at their workplaces, which boosts the demand,especially from the corporate communications sub-segment.
Increasing Need for Real-Time Communications Services
VaaS not only creates a more collaborative meeting environment but also enables developing technologically advanced digital workforce. The world is coming closer with the rapid adoption of technology that allows them to communicate in real-time, helping organizations maintain human connections regardless of their physical location. This results in faster decision-making and efficient working environments, raising the demand for real-time communications services. Additionally, the rising demand from the education sector to provide online learning content, live sessions, webinars, training & development for employees to upgrade their skills, others are gaining momentum.
BYOD trend among SMEs
Organizations focus on adopting more and more cloud-based solutions and services while reducing the IT infrastructure cost and its maintenance. Additionally, organizations provide interest-free loans to their employees to purchase and use computing devices of their choice at the workplace. Furthermore, these initiatives are receiving overwhelming responses from the workforce, increasing productivity due to the employees' enrichment through using their own devices that they feel more familiar with.
Rising Concern Over Data Privacy and Security
The sensitive information shared over the VaaS platform among the teams is proneto cyber threats and data breaches. The number of unethical cyber activities has increased with time in the past and is expected to surge with a rise in the adoption of digital platforms. Additionally, the rising trend for BYOD among SMEsis adding to the threat of data breaches owing to the complete ownership of selecting, supporting, maintaining, and securing their devices used for official purposes.
Unavailability of Robust Internet Infrastructure
The Internethas evolved with time and has been reporting the rise in adoption reaching its peaks. Mobile network technology has played a vital role in providing access to a large number of Internet users. However, access to the Internet is not enough for seamless interaction/content streaming over the VaaS platforms. It requires robust Internet connectivity to transmit high-quality images, video content, textual content, and files to communicate and stream in real-time. Emerging economies such as China and India lack in robust Internet connectivity at remote locations. China reports 70.4% of the total population had Internet access,whereas India to have its 45% of the total population connected to the Internet. Being densely populated regions, the countries have poor Internet bandwidth to transmit data from one node to another.
The global video as a service market has been segmented based onapplication, cloud deployment, vertical, and region.
By application, the globalvideo as a service market has been divided into corporate communications, training & development, and marketing & client engagement.
Based on cloud deployment, the video as a service market is classified into public, private, and hybrid.
Based onvertical, the global video as a service market has been segmented into BFSI, IT & telecommunications, healthcare, media & entertainment, and government.
The global video as a service market has beenanalyzed for five regions—North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
The globalvideo as a service market is estimated to register arobustCAGR of approximately 8.2% over the forecast period. The geographic analysis of the video as a service markethas been conductedfor North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.
North Americais expected to register the largest market share due to the risein demand forvideo as a service platformsacross end-use industry verticals in this region. The US is expected to lead the country-level market in theregion owing to the factors such as rising demand for video as a service for corporate communications among end-use industry verticals, including BFSI, IT& telecommunications, healthcare, media & entertainment,government, and others. Additionally, the presence of major players such asMicrosoft (US), Zoom Video Communications, Inc. (US), Cisco Systems, Inc. (US), Adobe (US), Avaya Inc. (US), Google (US), Amazon Web Services, Inc. (US), Plantronics, Inc. (US), LogMeIn, Inc. (US), RingCentral, Inc. (US), Zoho Corporation Pvt. Ltd. (India), Premiere Global Services, Inc. (US), Wickr Inc. (US), Pexip AS (Norway), andStarLeaf (UK). Adding more, these key players are investing heavily in the research & development of VaaS platform technology.
Europe is expected to be the second-largest market during the review period due to the higher adoption from the IT & telecommunications sector,mainly for IT service management and automation & configuration management. Additionally, the benefits offered by video as a service such as agility, efficiency, choice, and control to make the cloud management experience seamless. Asia-Pacific is anticipated to be the fastest-growing market in the global video as a service market during the forecast period, mainly due to the digital transformation and rising adoption of cloud-based services.
The markets in the Middle East & Africa and South America are expected to register steady growth during the forecast period with the growing demand for video content, online learning platforms, and digital transformation.
The globalvideo as a service market is witnessing high growth mainly due to the rising use of cloud-based solutions, a shift from conventional systems to cloud platforms, and surging demand for simplified cloud environment management. As a result, major players have opted for partnerships,acquisitions, and product developments as their key organic growth strategies to enhance their positions in the market and cater to the demands of end-useverticals.Additionally, the industry players are competing to provide seamless corporate communications, training & development, and marketing & client engagement needs with enhanced user experience, high video/audio quality, user data privacy,and regulatory compliance.
Zoom Video Communications, Inc. (US) offers a portfolio of product offerings that include various features bundled into each one. For instance, it providesthree video conferencing plans, among which Zoom United competes with Microsoft’s Teams that provide collaboration facilities costing over USD250 per user for annual subscription offers unlimited video meetings with over 100 participants, 1GB storage meeting recordings, and unlimited chat and calling over the local phone numbers.Additionally, the company is continuously investing in R&D activities to provide a secured communication platform with 24/7 live support.
Impact of COVID-19
The global video as a service industry has reported high adoption of different cloud-based solutions for business continuity during the pandemic situation raised due to the outbreak of novel coronavirus.It shifted from the conventional working environments to the new normal of remotely working scenarios to break the chain of spreading the disease infections. The adoption of digital platforms surged during the pandemic situation and is expected to continue until the time of vaccination of each individual sitting at the remote places of the world. On the other hand, businesses are investing and expanding their IT budgets to adapt and cater to customer needs for business continuity. Additionally, the end-use verticals such as BFSI, IT & telecommunications, healthcare, media & entertainment, government, and othersare projected to expand further with their digital infrastructure spending.
On June 1st, 2021, RingCentral, Inc. (US), a leading provider of global enterprise cloud communications including video meetings, collaboration, and contact center solutions has partnered with the European leading integrated telecommunications provider—Deutsche Telekom AG—to provideand transform business communications for customers of all sizes through the delivery of mobility-centric, flexible, userfriendly, and secured cloud communication solutions.
On June 8th, 2021, Crexendo, Inc., a leading provider of Unified Communications as a Service (UCaaS), call center, collaboration services, and others,announced the launch of VIP Cloud Communications Platform for enterprise-class cloud services to organization irrespective of their size with budget-friendly rates, superior video, interactions, and Business Phone Communications.
On February 2nd, 2021, Wickr Inc. (US) announced the general availability of a feature, ‘Global Federation,’which enables business and government organizations to communicate securely with the help of end-to-end encryption.
On January 18th, 2021, StarLeaf (UK) announced a partnership with software workflow provider, Flabba, to design and build video solutions for NHS Trusts and GP practices that are expected to benefit clinicians and healthcare professionals who provide remote care with enhanced efficiency during pandemic situations.
The key players in theglobalvideo as a service market are identified based on their country of origin, presence across different regions, recent key developments, product diversification, and industry expertise. These includeMicrosoft (US), Zoom Video Communications, Inc. (US), Cisco Systems, Inc. (US), Adobe (US), Avaya Inc. (US), Google (US), Amazon Web Services, Inc. (US), Plantronics, Inc. (US), LogMeIn, Inc. (US), RingCentral, Inc. (US), Zoho Corporation Pvt. Ltd. (India), Premiere Global Services, Inc. (US), Wickr Inc. (US), Pexip AS (Norway), and StarLeaf (UK). The key strategies adopted by most of the players are partnerships,acquisitions, agreements, and collaborations.
Global Video as a Service Market, 2019–2027 (USD Billion)
Source: MRFR Analysis