New Growth Levers from AI and Workspace Modernization Drive Market Resurgence
After experiencing a significant slump in the prior year, the video conferencing devices market returned to growth mode in 2024. Growing at 10.4% YoY, revenue in 2024 reached $3.80 billion. With rapidly increasing technology density, video device revenue is expected to more than double by 2029, growing at a compound annual growth rate (5-year CAGR) of 16.4%.
The pace of structural changes impacting the workplace and adoption of collaboration technologies - from shifts in hybrid work to advances in AI and sustainability - is accelerating. A strong rate of return to office and the renewed focus on leveraging technology and spaces to support the demands for collaboration and engagement are providing tailwinds for growth. Data indicates that video conferencing penetration rate in meeting rooms will more than double, driven by the momentum for video-first transformation.
AI is the key market driver, removing many friction points that have hindered wide-scale video adoption in the past. It is the overarching technology driving much of the innovation in meeting room software and devices. The market is experiencing an unprecedented pace of innovation as AI and data-driven insights, along with hyper-personalization, become the cornerstone technologies.
Customer organizations and market participants, including technology vendors, service providers, channel partners, resellers, and IT/telecom decision-makers, among others, will find value in leveraging the findings of this study to develop sustainable growth strategies that tap into the growing wave of video adoption across organizations of all sizes.
