Global video conferencing market grows to $5.1 billion in 2024

Futuresource Consulting reveals growth drivers, key trends and regional highlights

The global video conferencing market is navigating a period of steady expansion, with volumes expected to approach four million units by the end of 2024, according to a new report from Futuresource Consulting. Despite economic pressures, value is expected to surpass $5.1 billion, up from $4.9 billion in 2023, driven by the rising adoption of peripherals such as meeting room cameras and video bars.

Adaptable solutions aiding peripheral growth

As enterprises refine their hybrid working policies, video conferencing peripherals have become essential tools. All-in-one video bars offer a cost-effective solution for companies looking to integrate audio and video capabilities while managing budgets. This trend highlights the importance of adaptable, scalable solutions in today’s evolving workplace.

Meeting room cameras are also thriving, growing by 8% in value over the past year and accounting for 59% of total video conferencing peripheral shipments.

Room system and BYOD battleground

The competition between Bring Your Own Device (BYOD) and room systems continues to shape deployment strategies.

“Room systems provide a streamlined, user-friendly experience and enhanced equipment management,” says Scarlett Woodford, Head of Collaboration at Futuresource Consulting. “Their higher price point means that they are most popular among well-resourced enterprises, yet they accounted for 58% of video conferencing revenues in 2024.

“Meanwhile, BYOD solutions appeal to organisations seeking lower initial costs and minimal user training, particularly for small meeting rooms and huddle spaces.”

Logitech leads the way

Logitech remains the largest manufacturer of video conferencing peripherals, capturing 21% of global volumes in H1 2024. Futuresource attributes this success to popular products such as the MeetUp video bar and the Rally Camera/Rally System.

Yealink takes third position with single-digit market share, leveraging competitive pricing to gain traction. However, challenges in pre- and post-sales support are hindering its growth in Western markets.

Americas maintains market share

The Americas accounts for 40% of global video conferencing peripheral volumes, maintaining its market share from 2023. That’s despite the US education sector feeling the effects of election-driven spending slowdowns. EMEA holds the second-largest share, although economic challenges in Europe have dampened growth. These include factory closures in Belgium’s automotive sector.

AI potential or pitfall?

The integration of artificial intelligence in video conferencing remains a hot topic. While AI promises transformative capabilities, enterprises are hesitant to invest without clear, immediate return on investment. Concerns about obsolescence and budget constraints have slowed adoption, leaving manufacturers focused on refining existing product lines.

However, as AI capabilities in video conferencing systems become more sophisticated, ranging from automated participant framing to real-time transcription, its potential to revolutionise collaboration should not be underestimated.

A market primed for growth

“The future of video conferencing is gearing up for greatness, with total market value expected to close in on $7 billion by 2028,” says Woodford.

“Despite macroeconomic challenges, enterprises are poised to replace hardware purchased post-COVID, aligning these upgrades with clearer hybrid work strategies. What’s more, the rollout of new Android-based models, supported by the Microsoft Device Ecosystem Platform (MDEP), is expected to drive BYOD adoption, adding additional functionality to USB spaces.”

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About Futuresource Consulting

Futuresource Consulting, established in the 1980s, is a leading research and consulting firm specialising in global market analysis, forecasts and strategic insights. With a deep understanding of emerging trends and technologies, Futuresource helps businesses navigate complex markets and make informed decisions.

To learn more about the Video Conferencing Market Report or to make a purchase, please contact Benedict Greenwood at benedict.greenwood@futuresource-hq.com or visit www.futuresource-consulting.com.

Press Contact: Nicola Finn, Marketing Manager,   Futuresource Consulting, nicola.finn@futuresource-hq.com

About the author

Scarlett Woodford

Scarlett is a Senior Market Analyst in the Collaboration team at Futuresource Consulting, responsible for researching and consulting on the ways we work together, in an increasingly hybrid landscape.

 With a background in telecommunications and connectivity services, Scarlett is particularly interested in the impact of new technologies on existing business models.

 Scarlett has a degree in Psychology from the University of Surrey and has previous experience working as a research analyst in the service provider market.