Video as a Service Market
Remote work is becoming the new normal for many organizations and has become a phenomenon in the recent years, especially after the coronavirus pandemic. Remote work is continuously perceived as positive, with almost 65% of full-time employees ready to work remotely, according to Gallup, Inc. report of June 2022. To maintain flexibility in working conditions, organizations implement a remote working model. Adoption of the remote working model increases the demand for cloud-based video communication services among consumers. These services provide an interactive engagement between superiors and subordinates to schedule meetings, conferences, and webinars to achieve business goals and effectively increase operational productivity. Adobe Inc, Deutsche Bank, Google LLC., LinkedIn, Microsoft Corp, SAP SE, Verizon Communications Inc, and numerous companies have already adopted remote working model in their business, which increases the demand for cloud-based video solutions to maintain employee engagement. Video as a service allows organizations to deploy collaboration tools for enhancing their business communication and customer experience by minimizing additional travel costs, which drives the video as a service market.
Remote working helps employees to reduce their traveling and maintain a work-life balance. A study conducted by the National Bureau of Economic Research in January 2023 represented that, remote working saved an average of 72 minutes spent by employees on their daily travel to and from their on-site jobs during 2021–2022. Employees prefer a video as a service to conduct work-related meetings at home. Thus, the increasing adoption of remote working models fuels the video as a service market growth.
US Dominates Video as a Service Market in North America
The video as a service market in the US is projected to grow during the forecast period due to the high rate of technological adoption across all industries. The IT and healthcare sectors in the country play a significant role in the US economy. The country has a presence of diverse industries and is one of the world leaders in high-technology innovation, which further drives the adoption of cloud technologies. Increasing spending on cloud technology bolsters the video as a service market growth in the US. Amazon Web Services Inc accounted for 32% of global cloud spending in Q3 2022. Growing cloud spending encourages the software developers to develop and add new features to cloud-based video solutions to attract potential customers and increase their market share.
The US consists of one of the world’s major pharmaceutical industries, with approximately one-third of the pharmaceutical market share globally. The growth in the pharmaceutical industry propels the adoption of video as a service solution among healthcare professionals and patients for online video consulting and meetings, which contributes to the video as a service market growth in the US.
Canada has experienced a rapid demand and adoption of advanced technological solutions across all industries over the years. The country is building global leadership in integrating advanced technologies such as cloud computing, artificial intelligence, and others. According to the International Data Corporation (IDC) data of August 2023, Canada spent US$ 1.4 billion in cloud technology 2022 and is planning to increase its cloud spending up to US$ 3.9 billion by 2027 to fulfill the growing consumer demand for public, private, and hybrid cloud-based services, which drives the video as a service market in the country. Growing adoption of video as a service solution by SMEs and large enterprises for managing daily video meetings and conference calls also fuels the video as a service market growth.
Segmental Overview
Based on deployment mode, the video as a service market is segmented into public cloud, private cloud, and hybrid cloud. The public cloud segment recorded the largest video as a service market share in 2022 and is anticipated to hold a significant revenue share during the forecast period. Based on industry vertical, the video as a service market is segmented into IT & telecom, healthcare & life sciences, retail & e-commerce, BFSI, education, media & entertainment, government & public sector, and others. The IT & telecom segment held the largest video as a service market share in 2022, whereas the healthcare segment is anticipated to record the highest CAGR during the forecast period.
Market Analysis: Competitive Landscape and Key Developments
Cisco Systems Inc, Zoom Video Communications Inc, Microsoft Corp, Amazon Web Services Inc, Avaya Holdings Corp, Google LLC, Adobe Inc, RingCentral Inc, Dekom AG, and BlueJeans are among the key video as a service market players that are profiled in the report. Several other essential video as a service market players were also analyzed for a holistic view of the market and its ecosystem. The market report provides detailed market insights to help major players strategize their growth.
- In April 2023, Microsoft Corp. and Epic announced the expansion of their long-standing strategic collaboration to develop and integrate generative AI into healthcare by combining the scale and power of Azure OpenAI Service1 with Epic’s industry-leading electronic health record (EHR) software. The collaboration expanded the long-standing partnership, which includes enabling organizations to run Epic environments on the Microsoft Azure cloud platform.
- In November 2022, Cisco and Microsoft Corp. announced at Microsoft’s annual Ignite conference a new partnership that will provide customers with more choices. In the first half of 2023, Cisco and Microsoft will soon offer the ability to run Microsoft Teams natively on Cisco Room and Desk devices Certified for Microsoft Teams, with the option of Teams as the default experience.
- In October 2022, Cisco unveiled a preview of its next-generation hybrid work collaboration product, WebexOne. Webex Hologram is the industry’s only real-time meeting solution that takes advantage of augmented reality headsets to combine feature-rich Webex meeting functionality with immersive 3D holograms.
