Video As A Service Market Size, Share & Trends Analysis Report By Vertical (BFSI, Education), By Cloud Deployment Mode (Public, Hybrid), By Application, By Region, And Segment Forecasts, 2021 - 2028

Report Overview

The global video as a service market size was valued at USD 2.13 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 39.7% from 2021 to 2028. Owing to the high growth potential, several new players are entering this market with solutions similar to the existing ones. Therefore, the existing companies are now focusing on developing new features and capabilities to enhance the functionality of their VaaS solutions. There is also a visible shift in the demand from on-premises Video Conferencing (VC) and collaboration solutions to cloud-based solutions owing to the high scalability, flexibility, and cost-effectiveness offered by the cloud architecture. The prominence of cloud-based solutions has bolstered the growth of the video as a service (VaaS) market.

Different video conferencing solution providers have adopted different strategies to better serve their customers. Solution providers are focusing on offering customized solutions to meet the specific requirements of multiple businesses. Furthermore, the adoption of cloud-based solutions and the investments for including new features, such as Artificial Intelligence (AI), voice & face recognition, HD audio & video, and immersive telepresence, is increasing significantly. The entry of new VaaS solution providers is expected to intensify the competition and drive cost-effective hybrid cloud-based VC and collaboration solutions by Small & Medium Enterprises (SMEs). Consultants and freelancers are also using VC solutions to interact with clients located in different regions.

Cloud-based VC capabilities have enabled companies to improve collaboration among offices located across the globe. Companies with a worldwide workforce and network are the early adopters of VaaS solutions and are more likely to deploy video as a service to enable effective communication among different teams located in various countries. Many companies have implemented VC as a travel substitute, saving time and associated travel costs. As the adoption of VC increases, companies are focusing on integrating it into their Unified Communication (UC) architecture. They are trying to extend the video conferencing facility to mobile and remote users through desktop and cellular communication devices to facilitate VC for multiple users across various regions.

With the increasing globalization of businesses worldwide, there is a need to set up a cost-effective, flexible, and scalable communication network to facilitate team collaboration, better communication, and decision-making capability. Since VaaS involves visual data-sharing, it enables organizations to discuss business strategies and provide employee training effectively to achieve business objectives and enhance productivity. Hence, companies are increasingly adopting video as a service to help facilitate strategic as well as routine corporate communications.

Application Insights

The corporate communications segment dominated the market in 2020, accounting for a 28.7% share of the global revenue, and will expand further at the fastest CAGR over the forecast years. This growth can be attributed to the adoption of cloud-based services and increased demand for real-time and remote access video services among enterprises. The COVID-19 pandemic has disrupted the operational efficiency and productivity of businesses and employees across the globe. Hence, the corporate communications segment has witnessed a positive impact as the implementation of video conferencing for communication and collaboration has increased by over 100%.

The adoption of VaaS has spurred significantly during the pandemic, contributing to the segment growth. The other applications include training & development, marketing & client engagement, broadcast distribution, content creation and management, and others. The marketing & client engagement segment also accounted for a noticeable market share in 2020. The content creation & management segment is expected to witness significant growth over the forecast period. The adoption of VaaS for training & development activities, collaboration, and marketing & client engagement is expected to grow in the post-pandemic scenarios.

Cloud Deployment Mode Insights

The hybrid cloud segment dominated the market in 2020, accounting for 43.7% of the global revenue. The high share can be attributed to the substantial shift to a hybrid model that aligns with the nature of different workloads. In the hybrid cloud deployment model, organizations can maintain their external capabilities with large public cloud providers while retaining relatively less significant workloads in a private cloud located in-house or on-premises. Such a scenario is anticipated to demonstrate the future of organization infrastructure management.

Deploying a cloud video in a SaaS (Software-as-a-Service) model relieves the enterprise IT teams and the customers of managing the environment. Some cloud solutions providers, such as Microsoft, offer cloud video-related innovations to deliver value-added VaaS. Other cloud deployment modes include the public and private cloud. The private cloud deployment allows enterprises to deploy their cloud on-premises, which can be used in combination with the public cloud in a public-private hybrid cloud architecture.

Vertical Insights

The education segment dominated the market in 2020 with a revenue share of over 18%. The high share can be attributed to the mandated Work-from-Home (WFH) and distance education policies due to the COVID-19 pandemic. Schools, universities, and other learning institutions were encouraged to follow distance education, access Professional Learning & Development (PLD) programs, and work remotely. The adoption of distance education and teaching due to the coronavirus outbreak has contributed to the industry's growth.

The other verticals of the VaaS market include BFSI, healthcare & life sciences, retail & e-commerce, IT & telecom, government & public sector, media & entertainment, and others. The IT & telecom segment is expected to demonstrate significant growth over the forecast period owing to the rapid advancement of the cloud-based collaboration and communication software industry. Team collaboration and communication software enable teams working remotely to manage projects of all sizes, streamline business processes, and boost productivity across the organization. The government & public sector is another promising sector likely to witness rapid adoption of VaaS in the coming years.

Regional Insights

North America dominated the market in 2020 accounting for a revenue share of over 43%. This high share can be attributed to the presence of numerous cloud-based video solution providers in the region. The market in North America is mature in terms of adopting video conferencing and other cloud-based communication solutions. Exponential growth in demand for continuous access to visual meetings and high-quality internet has contributed to the regional market growth. Furthermore, the presence of numerous key players and the growing popularity of BYOD (Bring Your Own Device) solutions have led to the adoption of webcams and headphones at a large scale, which has further driven the regional market growth.

Asia Pacific is expected to be the fastest-growing regional market over the forecast period. Although the region’s governing bodies and business communities have already encouraged technology innovation before the COVID-19 pandemic, the coronavirus outbreak has acted as a catalyst for developing high-quality internet infrastructure in the region, allowing people to work remotely. The drastic shift to the remote working infrastructure has bolstered the demand for video conferencing equipment, collaboration tools, and accessories, thereby boosting the market growth in the region. Furthermore, advancements in mobile broadband technologies in countries, such as Japan and India, are anticipated to accelerate the regional market growth.

Key Companies & Market Share Insights

Vendors active in the market are focusing on expanding their customer base and gaining a competitive edge. Hence, they are pursuing various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/ technology development. For instance, in September 2020, Zoom Video Communications, Inc. signed a partnership agreement with Lumen Technologies, a U.S.-based enterprise technology platform provider, to allow the latter company to offer its services as part of the Unified Communications and Collaboration Suite. This partnership was anticipated to deliver enhanced customer reach for Zoom and improve the user experience for the Unified Communications and Collaboration Suite. Some of the prominent players in the global video as a service market include:

• Adobe

• Alphabet, Inc.

• Amazon Web Services, Inc. 

• Avaya, Inc.

• Cisco Systems, Inc. 

• LogMeIn, Inc. 

• Plantronics, Inc. 

• RingCentral, Inc. 

• Zoho Corporation Pvt. Ltd. 

• Zoom Video Communications, Inc. 

Video As A Service Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2028. For the purpose of this study, Grand View Research has segmented the global video as a service (VaaS) market report based on application, cloud deployment mode, vertical, and region:

• Application Outlook (Revenue, USD Million, 2018 - 2028)

  • Corporate Communications

  • Training & Development

  • Marketing & Client Engagement

  • Broadcast Distribution

  • Content Creation &Management

  • Others

• Cloud Deployment Mode Outlook (Revenue, USD Million, 2018 - 2028)

  • Public Cloud

  • Private Cloud

  • Hybrid Cloud

• Vertical Outlook (Revenue, USD Million, 2018 - 2028)

  • BFSI

  • Healthcare & Life Sciences

  • Retail & E-Commerce

  • IT & Telecom

  • Education

  • Government & Public Sector

  • Media & Entertainment

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa (MEA)