Market Insight

Collaborative meeting services grew 10 percent in 2017

April 17, 2018

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Following are highlights from IHS Markit about the collaborative meeting services market.

Worldwide revenue for collaborative meeting services (video and web conferencing) grew 10 percent in 2017, totaling $2.5 billion. Growth was driven by the need for better communication tools to bridge geographic divides between employees, partners and customers; the continuing adoption of unified communications; and the shift from in-house infrastructure deployments to a cloud delivery model.

As the market shifts toward cloud-based collaboration services, equipment revenue has been on the decline; for example, video conferencing infrastructure has been dropping at a compound annual growth rate (CAGR) of -14 percent from 2014 to 2017. Meanwhile, cloud video conferencing service revenue grew at a CAGR of 24 percent during the same period.

“Growth in cloud-based collaborative meeting services is keeping equipment markets flat as buyers look to outsource infrastructure and take advantage of the greater flexibility, agility and potential cost savings of cloud deployments,” said Matthias Machowinski, senior research director, enterprise communications, IHS Markit.

In 2017, there were strong signs of the video conferencing and web conferencing markets merging and moving steadily into the territory of unified communications. “As markets become increasingly competitive, service providers are now offering enhanced portfolios that not only mesh different communication modalities such as voice, video, messaging and document/screen sharing, but also integrate AI through features such as automated meeting transcription, scheduling and note taking,” said Prachi Nema, senior analyst, enterprise communications, IHS Markit.

Additional collaborative meeting services highlights

  • Cloud video conferencing services are the fastest-growing segment in video conferencing, with revenue increasing 19 percent in 2017, to $425 million
  • North America is the largest market for collaborative meeting services, generating revenue of $1.6 billion in 2017 (+4 percent year over year)
  • Europe, the Middle East and Africa (EMEA) has traditionally embraced the outsourcing model, and here the market outpaced North America with 26 percent growth in 2017 from a year ago
  • Although video and web conferencing services have not yet become a commodity, IHS Markit expects growth to slow from 2017 to 2022

Collaborative Meeting Services Market Report – 2018

The annual collaborative meeting services report from IHS Markit provides worldwide and regional market size, vendor market share, forecasts through 2022, analysis and trends for cloud video conferencing and web conferencing services. Vendors tracked include BlueJeans, Cisco WebEx, Citrix, Glowpoint, LogMeIn, Polycom, Zoom, others.


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