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, Frost & Sullivan expects video device revenue 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. Frost & Sullivan 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.
Table of Contents
Growth Opportunities: Research Scope
Scope of Analysis
Market Segmentation
Segmentation by Room Size
Growth Environment: Transformation in Video Meetings
Why is it Increasingly Difficult to Grow?
The Strategic Imperative 8™
The Impact of the Top 3 Strategic Imperatives on the Video Devices Market
Ecosystem: Research Scope and Market Overview
Key Competitors
Target Markets
Variety of Deployment Options
Market Overview and Key Findings
Key Findings
Adoption in 2025 and Beyond
Market Overview
Key Findings from UC and AI Decision Maker Surveys: Hybrid Work Trends and Investment Priorities
Hybrid Work Stabilization
Evolution in Office Spaces
C-suite Influence Remains High While the Influence of Line-of-Business Heads is Growing
Increasing Investments in Communications and Collaboration Tools
Unified Communications and Collaboration Solution Investment Drivers
A Strong Focus on ESG and Sustainability
Key Approaches to Sustainability
Key Findings from UC and AI Decision Maker Surveys: AI Adoption and Use Cases
Enterprise AI Deployments Move Beyond Proof-of-Concept Stage
Improving Operational Efficiency is a Key Driver for AI Investments
Data Concerns and Ability to Assess ROI are Key Challenges
AI Deployments Across Business Functions
Key Findings from UC and AI Decision Maker Surveys: Video Conferencing Capabilities and Features
Ongoing Meeting Room Modernization Feeds Into Greater Video Adoption
Current Video Device Adoption
Investment Plans for Video Devices Among Current Adopters
Technologies Used in Meeting Rooms
Top Selection Criteria for Room Video Conferencing Devices
Key Capabilities for Room Video Conferencing Devices
Technology and Usage Trends
AI is Transforming the Meeting Experience
Emerging Trends in AI
Evolution of Workplace Optimization
Growth Generator: Video Conferencing Devices
Key Growth Metrics
Growth Drivers
Growth Restraints
Forecast Considerations
Revenue and Unit Shipment Forecast
Revenue Forecast by Device Type
Unit Shipment Forecast by Device Type
Average Pricing Forecast by Device Type
Percent of Revenue by Device Type
Percent of Unit Shipment by Device Type
Revenue Forecast Analysis
Growth Generator Room Devices
Room Devices: Key Growth Metrics
Room Devices: Revenue and Unit Shipment Forecast
Room Devices: Revenue Forecast by Meeting Room Size
Room Devices: Units Forecast by Meeting Room Size
Meeting Room Count and Video Conferencing Penetration Rate
Room Devices: Percent of Revenue Forecast by Room Size
Room Devices: Percent of Unit Forecast by Room Size