LONDON, Aug. 6, 2025 — The global video conferencing (VC) market continues to show resilience, having registered 5 percent year-over-year in 2024, to reach $18 Billion in revenue, according to new analysis from Omdia’s Market Landscape report.
This growth has been witnessed despite challenging geopolitical conditions and ongoing economic uncertainties, pivotal factors which may have an influence on hybrid work policies, as businesses continue to reimagine the future of work, reveals the report.
Driven by this momentum, the market is projected to continue expanding through 2029. “This isn’t merely about weathering the storm, it’s about strategic transformation,” said Prachi Nema, Principal Analyst, Digital Workplace, Omdia.
“While North America appears saturated and EMEA shows signs of stagnation, Asia & Oceania continue to show promising growth. This reflects the trend in AI adoption, with companies increasingly emphasizing collaboration tools to boost employee productivity in hybrid work settings.”
Notably, the research highlights a significant disparity in meeting room infrastructure worldwide, with only 6.25 percent of all meeting rooms fully equipped as standardized spaces or native meeting rooms such as Microsoft Teams Rooms or Zoom Rooms.
However, the market for bring-your-own-device (BYOD) rooms is significantly larger than standardized meeting rooms. The demand for BYOD rooms, particularly those that provide quick and easy wired/wireless meeting capabilities, is on the rise, reveals the Omdia analysis.
Which are the Video Conferencing Growth Markets?
The collaborative meetings market grew 4 percent in 2024, while the VC devices experienced a 6 percent year-over-year increase. This growth is particularly of a great importance as economic slowdowns and shifting enterprise priorities are looming large.
In the short-to-medium term, Omdia expects the market to grow at a five percent CAGR over the next five years, with total revenue reaching $21 billion by 2029. New users in Asia & Oceania, as well as EMEA, as well as emerging use cases across sectors such as healthcare, education, and finance, will drive this growth.
Soon after the Omdia study became public, Plug Power Inc. rose 2.50 percent during intraday trading. The company is set to announce its 2025 second-quarter results, which could be a significant event for investors.
The global video conferencing market continues to grow, indicating a positive trend in the tech sector.
Regionally, North America leads with a 42 percent subscription market share within collaborative meeting services, followed by Europe, the Middle East, and Africa (EMEA) at 27 percent.
Asia & Oceania owns 25 percent share of the subscription. Globally, only 28 percent of all meeting rooms have some form of VC capability, highlighting significant growth opportunities for vendors capable of overcoming cost and deployment barriers.
Factors Reshaping Video Conferencing Landscape You Should Know
AI integration: It is transforming both hardware and software solutions, with features such as automated summaries, translations, and advanced room analytics becoming standard offerings.
Strategic partnerships: The collaborations between hardware and software vendors are creating new market opportunities and enhancing interoperability.
Android-based plug-and-play solutions: These solutions are gaining popularity due to their ease of use and flexibility.
Microsoft's dominance: Forty nine percent market share of Microsoft in collaborative meeting services is influencing hardware certification and deployment strategies. “However, the market is becoming increasingly commoditized, with very little product differentiation between vendors’ offerings,” said Nema.
Tariff Impact on VC Segment
As per an earlier Omdia analysis, the tariffs enforced by the US, especially those directed toward China, and the retaliatory tariffs imposed by other countries on American goods have led to severe consequences for the video conferencing device market.
Many video conferencing vendors manufacture their products in China or source necessary components from the country. With a significant 145 percent tariff imposed by the US on imported Chinese goods (comprising a 125 percent reciprocal tariff and a 20 percent fentanyl tariff), the prices of video conferencing endpoints and devices will likely rise for businesses.
The Omdia analysis says that in recent years, a few key video conferencing vendors have relocated parts of their manufacturing outside of China to places such as Taiwan, Vietnam, and Mexico, particularly after the pandemic, to ensure business continuity.
“However, the issue extends beyond China, as tariffs on video conferencing products also affect devices manufactured in other geographies. Vietnam faces a 46 percent tariff, Taiwan a 32 percent tariff, and India, South Korea, and Mexico each face a 25 percent tariff.”
In terms of the top challenges faced by the vendors in this market, are supply chain disruptions, vendors considering a shift in manufacturing and market uncertainty.
While North America appears saturated and EMEA shows signs of stagnation, Asia & Oceania continue to show promising growth.
Inputs from Saqib Malik
Editing by David Ryder
