by Brianna Crandall — February 14, 2014—Reflecting recent trends in workspace configuration and technology, Web conferencing vendors are looking to tap the significant opportunities created by the emergence of disruptive new services, mobility and social collaboration, according to new research from global growth consulting firm Frost and Sullivan. Work styles are rapidly evolving, with more than 10 million mobile downloads for Web conferencing solutions in 2013, finds the firm.
The transition from audio-only communication to richer audio, Web and video collaboration is urging market participants to offer Web conferencing solutions that not only facilitate online meetings, but serve as social and collaborative platforms. Rising consumerization, the need for flexible work styles, and the rapid pace of technology change among businesses are further triggering the demand for Web conferencing technologies, according to the report.
Frost and Sullivan’s Analysis of the Global Web Conferencing Market finds the market earned revenue of $1.80 billion in 2012, and estimates this to reach $2.88 billion in 2017 at a compound annual growth rate (CAGR) of 9.8 percent. The demand for Web conferencing is growing rapidly, with several vendors reporting more than 25 to 30 percent increase in usage.
The research covers hosted Web conferencing services and on-premises Web conferencing, including an executive summary, market overview, drivers and restraints, forecast and trends, market breakdowns, channel trends for communication service providers, market share and competitive analysis, and the analyst’s last word.
“The integration of Web conferencing with business applications that fit into the customer’s existing workflows and enable quicker decision-making is giving a thrust to the market,” said Frost and Sullivan Enterprise Communications and Collaboration Industry Director Roopam Jain. “Eventually, Web conferencing will become a feature in business process and productivity software suites.”
Although global demand is on the rise, revenue growth is reportedly under pressure due to greater market maturity and the declining revenue per license. According to the report, the proliferation of freemium services and low-priced basic screen-sharing tools, as well as intense competition from cloud video conferencing services, is exerting further pressure on prices.
Another key pain point for current Web conferencing solutions is that of “disaggregated experiences”—the presence of multiple tools in multiple places, which limits users and predefines the way they should work, explains the report. The “bring your own app” (BYOA) phenomenon is leading to a proliferation of applications that are not sanctioned by the information technology (IT) department, which force IT to evaluate user-led solutions in its decision-making process. Therefore, market participants are developing a new generation of collaboration solutions that address these challenges.
“Vendors are looking to differentiate themselves from the competition by moving away from a ‘one-size-fits-all’ approach to solutions that meet specific requirements and business processes,” stated Jain. “They are also increasingly focusing on mobile delivery to ensure a borderless work experience that accommodates shifting work styles.”
