Web and Video Conferencing SaaS
COVID-19 Helps Video Calls Find a Place in the New Normal. Global Market to Spike by 110.3% in 2020
The pandemic is helping humans conquer the constraints of space and time in lightning speeds. The global Web & Video Conferencing SaaS market is expected to witness growth spike by 110.3% in the year 2020. As the world becomes physically disconnected under social distancing norms, it is also rapidly becoming a virtual neighborhood supported by digital connectivity, communication and collaboration. With normal life disrupted and employees separated from their offices, video conferencing has emerged into a social and enterprise lifeline. The accelerated pace of digital transformation and the massive forced migration to work from home (WFH) models represent the two major factors driving growth in the market. Home offices, remote networking, cloud computing, remote communication and collaboration, have all stormed into the spotlight as the world scrambles to find digital alternatives to being physically present. With no meaningful exit strategy available until a vaccine arrives, social distancing and remote working and operations will be the new normal going forwards. 88% of IT companies worldwide have migrated their employees to WFH during the pandemic.92% of teams in Asia-Pacific have implemented WFH since the outbreak highlighting the need to flatten the curve in countries with less than adequate healthcare resources. 45% of employees cite COVID-19 as the trigger for rapid adoption of remote working strategies. 72% of companies plan to shift a portion of their staff permanently to a WFH model. Virtual interactions will be the new normal and will be used extensively used to enhance real-world operational abilities of remote teams. Remote and virtual collaboration and communications has become the priority for businesses of all sizes as an essential tool to manage remote & virtual teams. Virtual meetings are taking off in the corporate world, highlighting this growing importance of professional communications. The global market for Web and Video Conferencing SaaS
American Company Zooms Ahead. The U.S. Accounts for Over 33.4% of Global Revenues in 2020
The market in the U.S. is estimated at US$1.3 billion in the year 2020. The country currently accounts for a 33.4% share in the global market. Even as tech giants like Google, Microsoft and Cisco chase after Zoom's jaw dropping success, the company remains comfortably well ahead of the race. For decades leading up until now, established videoconferencing solutions/brands available in the market were complex, hard-to-use, cumbersome, and expensive needing investment in infrastructure. This strain on IT resources and large numbers of frustrated users were the two prime reasons responsible for the heavy use of audio-only communication as the standard mode for virtual meetings. Pre-pandemic, a whopping90% of companies used audio only videoconferencing and preferred physical meetings and business conferences to videoconferencing. The beginning of the pandemic witnessed Zoom change the dynamics and the rules of the game overnight. The company's market capitalization rate from a mere US$16.1billion in December 2019 spiked to over US$66.2billion in June 2020, while price per share for the same period rose from US$66.7to over US$241.5. Despite security issues which saw a minor drop in Zoom's share price in the month of April 2020, companies of all sizes worldwide are lapping up Zoom products ranging from Zoom Rooms, Zoom Meetings & Chat, Zoom Video Webinars to Zoom phone.
So What Did Zoom Do Right that Other Companies Didn't?
Zoom over the last couple of months has become a household name winning equal popularity in the enterprise, consumer and commercial markets alike. From corporate team meetings, webinars, trade events, online education to hosting weddings, Zoom has made the right connection with all types of consumers. Adoption rates have peaked due to several reasons, the chief being the company's adroit strategy of offering a free basic version of its service as a way of promotion. Zoom offers free 40-minute conference calls with up to 100 attendees. Leveraging the power of cloud, the company has taught the industry that the simplest path to videoconferencing is also the most financially rewarding. Ease of use is the company's key selling point. Zoom video can be activated instantly on the company's cloud and requires no expensive on-premise infrastructure. Participants in the meeting need just click the link to join without app downloads. The company recently announced that business subscribers can now increase the number of video participants in their meetings from 100 to 300without drop in quality, at no additional cost and with no new device, app or infrastructure additions. Leveraging the cloud, the company is delivering reliable video at scale in comparison to other vendors who add or retrofit new video features to a legacy solution that results in a clunky experience ridden with limited reliability, functionality, and quality issues. The cloud architecture of the company includes distributed architecture, multimedia routing, multi-bitrate encoding, and application layer quality of service. A token of the company's success is the fact that zoom brand is now synonymous with cloud video conferencing. In addition, crisp video, reliable sound quality, ease of scheduling, joining, participating, screen sharing, and easy annotation features have all made Zoom popular. Zoom combines HD video conferencing, online business meetings, webinars& mobile capabilities in one collaborative solution. Zoom with its fairly simple UX and no frill cloud based solution is now changing the rules of the game. The company's massive conversion rate of this untapped market is evident in the number of app downloaded.
Global Market to Reach US$13.1Billion by 2027. Virtual Events to Emerge as the New Battlefield
The global market for Web and Video Conferencing SaaS is projected to reach a revised size of US$13.1 billion by 2027, growing at a CAGR of 18.2% over the analysis period 2020-2027.Close on the heels of corporate end-use applications, is professional conferences which is projected to grow at a 17.4% CAGR to reach US$3.4 billion by the end of the analysis period. As digital transformation gains momentum, webinars/live streaming will converge with video conferencing. Events virtualization is a major trend in the market. As the public health crisis continues to affect outdoor entertainment, event, conferences, and exhibitions, event organizers, exhibitors and sponsors are adopting videoconferencing to convert physical events to virtual. Several companies including Sales force are embracing the digital platform for organizing events. Sales force recently announced its decision to virtualized all 2020 events such as Dream force, World Tours, TrailheaDX India, Tableau Conference Europe, and Tableau Conference, and re-imagine physical events by the end of the year. As conventions, corporate events, trade shows fairs and conferences turn into virtual events, new revenue streams are emerging adding to demand growth and intensified competition in the market.
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