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Video Conferencing Hardware to Ship 3.6 Million Units in 2022

Video Conferencing Hardware Market Analysis and Commentary

As remote working, developments in technology and shorter project lifecycles continue to influence the corporate environment, video conferencing has become a key tool for many businesses. According to an industry report from Futuresource Consulting, video conferencing hardware shipments increased by 50% last year, reaching 1.4 million units, with a projected CAGR of 27% out to 2022.

“The market is in a significant growth phase,” says Chris Mcintyre-Brown, Associate Director at Futuresource Consulting. “Revenues reached $3.8 billion last year, and the total number of meeting rooms equipped with video conferencing technology now exceeds four million worldwide. However, this still only represents around 10% of the available market.”

Software-based Solutions on the Rise

As technologies proliferate, the market is beginning to shift from high-priced hard codec solutions to accessible software-based solutions. Company budgets that were previously allocated to video conferencing technology for one or two larger meeting rooms are now spread across multiple smaller rooms. It’s a challenge that is impacting many of the high-end vendors, who are adjusting their business strategies to remain competitive. This includes building in new premium features, releasing lower cost versions of their systems with less functionality, and/or exploring cloud-based solutions. Acquiring companies with complementary technologies is also a route being taken, demonstrated by Cisco’s recent acquisition of Voicea, a provider of real-time transcription, voice search and meeting highlight software.

“What was once seen as a solution for the boardroom is now being harnessed by employees at all levels, pervading meeting rooms and having a huge impact on the demand for video communications,” says Mcintyre-Brown. “At the same time, companies are recognising the benefits of collaboration and communication in small groups for rapid problem solving, creating the need for smaller, more immediate and informal meetings. As a consequence, larger meeting rooms are being forfeited to make way for smaller meeting rooms and huddle spaces. This is further accelerating the uptake of video communication solutions.”

End User Research Reveals Challenges

The Futuresource report also includes results from interviews carried out with over 1,100 end users across the USA, UK, Germany and France, revealing user behaviours, pain points, opportunities and barriers.

“Our research shows that almost two-thirds of interviewees spending up to three hours per week in meeting rooms are using conferencing technology to include a remote participant,” says Mcintyre-Brown. “What’s more, nearly three in four companies are actively encouraging employees to increase their use of conferencing technology to communicate with colleagues, customers and third parties. Yet, there are still a number of issues that continue to surface. On average, one in three conference calls suffers from some sort of mishap. This could be problems encountered when people try to join the conference session, audio or video quality, or background noise from another user. We also found that one in four conference sessions begin with some sort of delay. If left unchecked, such challenges may slow down user adoption moving forwards.”

Despite the challenges surrounding the technology, video conferencing continues to flourish, with Futuresource forecasts showing video conferencing hardware shipments reaching 3.6 million units in 2022. Cloud video conferencing solutions have been the single most important enabler of this explosive growth, addressing the need for AV communication at anytime, anywhere. Once these solutions have been tested with small teams, users then typically show the need to use them across the company, often trialling a wider range of technologies and investing in higher quality solutions, which helps to limit some of the technical problems faced by users.

For further information on the global video conferencing market review report, please click here. Alternatively, please get in touch with

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Chris Mcintyre-Brown

About the author

Chris Mcintyre-Brown

Coming from a background in marketing consultancy, Chris joined Futuresource in 2004 and has worked across all areas of the Futuresource business in his time at the company.

Chris is recognised as a leading global authority in the B2B Technology sector, regularly presenting at major international conferences, video broadcasts and published in trade press. He now leads a large team of analysts spanning 4 core pillars of Pro AV, Video and Broadcast, Collaboration and Information Technology.

Chris works extensively with the world’s largest tech giants, trusted to delivering strategic insights and consulting services. He holds a BA in Business Management and an MA in Marketing Management.

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