Owing to the rapidly changing business dynamics, the need for video conferencing or face-to-face communication is becoming increasingly important, thus eliminating the need for physical presence and travel needs and enabling effective communication between organizations and offices that are spread out across the globe. This in turn helps in cost saving and also enhances productivity and efficiency. Moreover, increased connectivity and growing popularity of BYOD trend is expected to further boost the growth of the overall market in the near future.
How is the VaaS market progressing globally?
The worldwide Video-as-a-Service (VaaS) market size which is estimated to be USD 390.3 Million in 2016 is projected to reach USD 1,587.4 Million by 2021, growing at a CAGR of 32.4% during the forecast period from 2016 to 2021.
Based on services, professional services segment is projected to grow at the highest CAGR. Apart from this, the video professional services in the services segment is expected to witness the highest growth rate in the overall VaaS market, since videos are increasingly gaining popularity as key tool for communication across the world. Among the managed services, broadcasting video communication services segment is expected to hold the largest market share over the forecast period, since the broadcasting video communication services help organizations distribute video content to all the dispersed audience via any electronic mass communication.
Among verticals, BFSI currently holds the largest market share, owing to the rising need of simplifying the workload and increased dependence on client engagement and collaboration. However, energy and utilities is expected to witness the highest growth during the forecast period due to the rising need to enhance the quality and real-time monitoring of the assets.
Geographically, North America is expected to be the dominant market in 2016, owing to the technological advancements and early adoption of VaaS in this region. However, the market in Asia-Pacific is expected to grow at the highest CAGR during the forecast period 2016-2021. This growth can be majorly contributed to the increased technological adoption and huge upcoming opportunities across various industry verticals in countries such as India, China, and Japan.
What are the factors impacting the growth of this market?
The growth of the worldwide video-as-a-service market is majorly influenced by the following factors:
- Increased number of connected devices
- Growing trend of BYOD
- Lower total ownership cost
- Rising focus on market intelligence and market
- Increase in spending and adoption of cloud-based video services, especially in SMEs
In addition, increasing popularity of face-to-face communication among employees and clients is also majorly contributing towards the rise of this market.
On the flip side, high cost of video content validity and creation and issues regarding security and privacy of the video content are the major factors that are likely to hamper the growth of this market over the coming years. Moreover, lack of transformation and integration and legacy architecture are the major challenges in front of the leading market players involved in this market.
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Key strategies adopted by the players for sustenance
Cisco Systems (U.S.), Interoute Communication Limited (U.K.), Polycom, Inc. (U.S.), Adobe Systems (U.S.), Huawei Technologies (China), Avaya, Inc. (U.S.), Vidyo (U.S.), BlueJeans Network (U.S.), Applied Global Technologies (U.S.), and AVI-SPL (U.S.) are the major players involved in the global VaaS market. Various types of organic and inorganic growth strategies, such as new product launches, partnerships and collaborations, and mergers & acquisitions were implemented by these players in order to expand their base as well as maintain their position in the global market.