2016 Web Conferencing Market Trends and Infograph
Feb 03, 2016
Frost & Sullivan's 2016 web conferencing research is out. For the full report and detailed market analysis including forecasts, market shares, and vendor profiles go to https://www.frost.com/nf93
Here is a snapshot of key findings -
• The global web conferencing market, which includes SaaS and on-premise, grew at a healthy 9.8% in 2015 to reach $2.41 billion. The overall market is seeing accelerated demand driven by simplification, lower-prices, and migration from stand-alone audio to web and video conferencing.
• Web conferencing software and services are forecast to grow at a 5-year CAGR of 8.4% to reach $3.6 billion in 2020.
• Users want a “single meeting, single license” experience. What used to be audio, video, and web conferences in the past have simply become online meetings.
• Demand is growing rapidly with several vendors reporting greater than 20% growth in usage; bookings are growing faster than revenue which is under pressure from declining prices.
• There is a strong push in the market to hit the sweet spot of sub-$10 per license, which is leading to fast-declining ASPs.
• The market for team collaboration is getting increasingly crowded. There has been an accelerated pace of M&A. We expect to see further shakeout.
• The overall market is characterized by growth, innovation, and technology advancements. The advent of a new breed of team collaboration tools is disrupting established business models and forcing incumbents to adapt and innovate at a faster pace or be left behind.
• The number of providers looking to reshape the web conferencing market has recently surged. Lower-priced cloud video conferencing services have emerged at a fast pace to vie for the same set of users.
• Next-gen collaboration software (e.g. Slack, HipChat) is witnessing rapid traction, posing greater competition and at the same time new opportunities.Microsoft is fast establishing its clout in the cloud and has seen momentous success with Office365 which will pose a growing challenge to its competition.
• There will be an accelerated shift to cloud which will lead to a considerable slowdown in the on-premises web conferencing market.
• Video adoption is seeing rapid-fire growth. The distinction between video and web conferencing is fast diminishing. WebRTC and VoIP have become the cornerstone technologies lowering the barriers to adoption.
• Most vendors offer freemium services to better penetrate SMBs. The freemium model is well established with conversion rates hitting the industry average of 2 to 3 percent.
• Shaped by mobile and cloud proliferation, IoT, and Big Data analytics, the total collaboration “pie” is increasing. However, price erosion and in some cases the race to zero is a pressing issue.
• Point web conferencing solutions currently dominate but their days may be numbered as online meetings get integrated with a broad spectrum of software including messaging, team collaboration, and hosted VoIP.
• The growth forecast is healthy but it will not materialize without significant industry transformation. Future success hinges on how quickly vendors simplify the increasingly complex collaboration products landscape.
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