The rising number of millennials and remote employees in the workforce is spurring demand for video conferencing systems in North America, according to a report from Frost & Sullivan.
The conferencing services market is in a state of rapid transition, as visual collaboration gains precedence over audio conferencing, the report says. Even as emerging video services are spurring market expansion, the commoditization of mature technologies is tempering growth, and as a result the hosted audio, Web, video and managed video conferencing service segments will see varying growth rates over the next seven years.
The study says the market earned revenues of $4.5 billion in 2014 and estimates it will reach $5.9 billion by 2021, at a compound annual growth rate (CAGR) of 4.1%.
The increasingly distributed and remote workforce requires organizations to deploy feature-rich and easy-to-use tools, greatly widening the scope of the North American 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,” Alaa Saayed, Frost & Sullivan unified communications and collaboration industry manager, said in a statement. “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.”
Hosted and cloud video conferencing services will become popular as organizations look to avoid huge capital investments in favor of subscription-based services.
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