Cloud-Based Web Conference Spend to Grow 25% in 2020

In BICSI Blog, BICSI Bytes, Featured, Newsby info@bicsi.com.au

According to the latest Gartner forecast, global end-user spending on cloud-based web conferencing solutions is expected to grow 24.3% in 2020.

Global workplace restrictions spurred by COVID-19 will expand the cloud conferencing user-base throughout 2020, but growth will taper off in 2021 as the lasting effects of a remote workforce render conferencing services commonplace.

End-user spending on cloud-based conferencing is projected to reach US$4.1 billion in 2020, up from $3.3 billion in 2019. It is the second-fastest growing category in the unified communications (UC) market, behind spending on cloud-based telephony, which is forecast to reach $16.8 billion in 2020.

Overall UC market end-user spending is projected to decline 2.7% in 2020 and return to growth in 2021, as cloud-telephony initiatives regain momentum.

“Cloud collaboration investments will buoy the UC market downturn as remote work initiatives spurred by the COVID-19 outbreak drive conferencing adoption and market growth,” said Megan Fernandez, senior principal analyst at Gartner.

Gartner predicts that by 2024, in-person meetings will account for just 25% of enterprise meetings, a drop from 60% prior to the pandemic, driven by remote work and changing workforce demographics. As a result, there is a higher demand for convenient access to videoconferencing and other collaboration tools.

In 2020, new premises-based telephony investments will drop sharply as existing installed telephony system life spans are stretched and investment priorities shift to the cloud.

“Cloud telephony adoption will experience a ‘push and pull’ from competing market pressures,” continued Fernandez. “Overall, the market will be negatively impacted by organisations that were planning near-term premises to cloud migrations but are now extending legacy life-spans instead.”

However, cloud telephony will experience a boost once its benefits are recognised, namely the ease at which it can accommodate a changing workforce, update and extend existing features, and integrate with adjacent applications.

The cloud telephony market is projected to grow 8.9% in 2020 and 17.8% in 2021.

“As a result of workers employing remote work practices in response to COVID-19 office closures, there will be some long-term shifts in conferencing solution usage patterns,” concluded Fernandez. “Policies established to enable remote work and experience gained with conferencing service usage during the outbreak is anticipated to have a lasting impact on collaboration adoption.”