2023 Market Recap & 5-year Forecast: An Analysis of the Room-based Video Devices Market

This comprehensive report covers the worldwide market for room-based video conferencing devices. It includes 8 graphically illustrative figures and 20 data tables. The report starts with geographic regions. Then, The Collab Collective (TCC) provides a five-year forecast for these segments and regions.

Additionally, the report includes market dynamics and critical assumptions that we believe will influence the purchasing behaviors of enterprise buyers as they manage the dynamics of returning to the office and hybrid work strategies.

Overall, The Collab Collective estimates that cumulative endpoint revenue will total $18.1B between 2024 and 2028 and reach an annual rate of approximately $3.9B in 2027. Total units sold per year will average 1.5 million devices during this period.

The Collab Collective segments the room video conferencing market into the following product segments:

• Appliance-based solutions (formally Single Codec Systems), including Android-based Room Systems
• Personal Appliance-based solution (formally Executive Systems)
• PC-based solution (formally Reference Design Systems)
• Room BYOD (formerly BYOD Room Peripherals)

Regional detail:

• Worldwide
• North America
• Europe (EMEA)
• Asia Pacific (APAC)
• Caribbean & Latin America (CALA)

This report draws upon estimated revenue and unit sales from Aver, AudioCodes, Biamp, Bose, Cisco, Crestron, DTEN, EPOS, Huddly, Huawei, Jabra, Kedacom, Lenovo, Lifesize, Logitech, MAXHUB, Neat, Owl Labs, Poly, Q-SYS, and Yealink, as well as other video conferencing vendors.

Background and Definitions

Research Background and Methodology

This report was developed using primary and secondary sources of information. The Collab Collective (TCC) regularly contacts and interviews approximately 40 vendors operating worldwide. TCC collects quarterly volume and revenue data from the major vendors throughout the year, allowing us to perform market-sizing based on data submitted directly by the suppliers. In cases where data is not directly provided, TCC has made estimates based on other data points from vendors combined with our market insights.

All revenues stated are from the technology vendor ("factory") and do not include channel/reseller markup ("retail"). We attempt to make our units clear in all figures and tables. Numbers in the tables may not add precisely to 100% due to rounding.

Product Segments Within Room-based Video Devices

The table below shows The Collab Collective's definitions and examples of the different endpoint segments.

Regarding the Classification of Android-based Solutions

Over the last few years, we have seen the emergence of a new genre of traditional appliance-based codecs. These devices run Android versions of popular cloud-based conferencing services such as Microsoft Teams Room, Zoom Room, Google Meet Rooms, and others for room-use cases.

Although these devices seem very similar to the PC version of these applications, some noticeable differences exist, such as Android operating systems that can only be updated with firmware updates from the hardware vendor. These devices also leverage System-on-chip (SoC) hardware to accelerate audio and video encoding and decoding. Because of these characteristics, The Collab Collective categorizes these devices as Appliance-based Solutions.

Table 1 - Room-based Video Devices Product Segments

Source: The Collab Collective Research, April 2024

2023 Market in Review

The year 2023 can be characterized as a period of continued recalibration for the group video device market, with $3.27B in revenue and 1.31M units sold. These figures represent a further decline from the previous year's results, with revenue dropping by 9.7% and unit sales decreasing by 13.0% year-over-year.

The Collab Collective believes this downward trend continues the market normalization that began in 2022 as the industry moves further away from the extraordinary demand sparked by the pandemic. The 2023 results suggest that the market is still finding its new equilibrium, balancing the pre-pandemic norms and the heightened awareness of remote collaboration needs.

Several factors contributed to the market dynamics observed in 2023:

1. Economic Uncertainty: The global economy continued to face challenges, with persistent inflation concerns and uneven GDP growth across regions. This economic climate likely led to cautious IT spending, with many organizations potentially delaying or scaling back their video conferencing investments.
2. Hybrid Work Evolution: Video conferencing needs were likely reassessed as companies settled into long-term hybrid work strategies. This could have led to more targeted and strategic investments rather than the broad-scale adoption seen in previous years.
3. Market Saturation: The significant investments made in 2020 and 2021 may have satisfied much of the immediate demand for video conferencing equipment, leading to a natural slowdown in new purchases.
4. Supply Chain Improvements: Unlike 2022, supply chain issues were less prominently mentioned, suggesting that these challenges may have eased. However, the lower-than-forecasted sales across all segments indicate that demand, rather than supply, was the primary constraint in 2023.

Figure 3 - 2023 Units by Product Segment

Source: The Collab Collective, April 2024

Figure 2 – 2019-2023 Units by Product Segment

Source: The Collab Collective, April 2024

Looking at specific segments:

1. Appliance-based Solutions: 
   • Dominant segment: 46.1% of units, 59.3% of revenue
   • 19.2% revenue decline YoY, but maintained market leadership
   • Higher revenue share suggests customer preference for integrated solutions
2. PC-based Solutions: 
   • 19.1% of units, 25.0% of revenue
   • Showed resilience despite a 12.7% revenue decline
   • The trend towards higher-value PC-based solutions observed
3. Room BYOD:
   • 32.0% of units, but only 13.0% of revenue
   • Most significant decline: 24.1% in units, 19.7% in revenue
   • Remains important for flexible, cost-effective solutions despite decline
4. Personal Appliance-based Solutions: 
   • Smallest segment: 2.8% of units, 2.6% of revenue
   • Niche category catering to specific use cases

Overall, the market showed a preference for integrated solutions, with appliance-based systems leading despite general market challenges. PC-based solutions demonstrated resilience, while BYOD faced significant declines but remained a substantial part of unit sales.

Figure 3 - 2023 Units by Product Segment

Source: The Collab Collective, April 2024

Figure 4 - 2023 Revenue by Product Segment

Source: The Collab Collective, April 2024

2023 Scorecard

In reviewing the 2023 forecast, The Collab Collective achieved 81% accuracy when considering the year's unit and revenue forecast. This represents a slight improvement from the previous year's 80% accuracy, indicating a marginal enhancement in forecasting precision despite ongoing market challenges.

The Collab Collective's 2023 performance reflects a market still grappling with the lingering effects of global economic uncertainties. While the slight improvement in overall forecast accuracy is encouraging, the consistent underperformance across all segments suggests market recovery has been slower than anticipated.

The discrepancy between unit sales and revenue percentages, particularly in the executive systems category, indicates a shift towards higher-value products within segments. This trend might reflect enterprises focusing on quality over quantity in their video conferencing investments.

The significant underperformance in the reference design systems segment could signal increased competition or a shift in customer preferences towards other solutions.

Table 2 - 2023 Room-based Video Device Unit Forecast Versus 2023 Actual 

Source: The Collab Collective, April 2024

Table 3 - 2023 Room-based Video Device Revenue Forecast Versus 2023 Actual

Source: The Collab Collective, April 2024

Looking Forward - Seven Factors that Influence the Room-based Video Devices Market Forecast

The Collab Collective is pleased to share an updated framework for forecasting the video conferencing devices market over the next five years. This newer analysis is based on seven key Factors that Influence our understanding of market dynamics and future trends. These assumptions, refined through extensive research and industry expertise, provide a robust foundation for our projections.

Table 4 – Seven Factors that Influence the Room-based Video Devices Market 

Source: The Collab Collective, April 2024

These seven Influences form the cornerstone of our analysis, allowing for a nuanced understanding of the complex factors influencing the video conferencing devices market. By considering these diverse factors, we aim to offer stakeholders valuable insights that can inform their strategic decisions in this dynamic and evolving industry.

Each assumption plays a vital role in shaping our projections:

• They help us anticipate shifts in demand across different product categories.
• They allow us to account for regional variations in market development.
• They provide a framework for understanding how external factors (like economic conditions) and internal factors (like technological advancements) interact to shape the market.
• They enable us to identify potential growth areas and segments that may face challenges.

Worldwide Summary of Seven Factors for 2024-2028

Based upon these criteria, here is how we view the worldwide trends impacting this market.

1. Post-pandemic work trends:

• Hybrid work models are likely to persist globally, with regional variations.
• Impact: Moderate to strong positive growth, especially for personal and BYOD solutions.

2. Economic conditions:

• Varied growth projections across regions, with emerging markets showing stronger growth.
• Impact: Slight decrease in growth rates for 2024-2025, followed by accelerated growth in 2026-2028.

3. Technological advancements:

• AI adoption varies by region, with North America leading the way.
• Impact: Increased demand for newer, more advanced solutions, particularly in PC-based and BYOD segments.

4. Corporate IT spending:

• Cautious spending is present in some regions, with stronger growth in emerging markets.
• Impact: Varied growth in appliance-based solutions, accelerating in later years.

5. Market saturation:

• Mature markets (North America, Western Europe) show higher saturation.
• Impact: Possible slowdown in lower growth in mature segments like appliance-based solutions.

6. Emerging markets:

• Strong growth potential in LATAM, APAC, and parts of EMEA.
• Impact: Moderate to strong positive growth, particularly in more affordable segments like PC-based and BYOD solutions.

7. Cloud-based services:

• A global shift towards cloud-based solutions, with adoption rates varying by region.
• Impact: Faster growth in PC-based and BYOD segments, slower growth in hardware-intensive solutions.

Navigating these emerging trends and the ongoing economic uncertainties will be a critical challenge for vendors in 2024 and beyond. The success of different product segments will depend on the ability to align offerings with these evolving market demands. A diversified product portfolio will be essential to cater to a wide range of customer needs in this dynamic landscape.

In the following sections, we will apply these assumptions to our data analysis, providing detailed projections for different regions, product categories, and the overall market landscape.

2024-2028 Forecast for Room-based Video Conferencing

Below is an executive summary of the outcome of our five-year forecast. Product segment and regional-specific assumptions are discussed in appropriate sections later in this report.

Summary and Discussion on 5-Year CAGR Estimates

Over the next five years, The Collab Collective expects a 6.8% compound annual growth rate (CAGR) in units and a 3.8.1% CAGR increase in supplier revenue for the same five-year period. Overall, cumulative endpoint revenue between 2024 and 2028 will total $18.1B and reach an annual rate of approximately $3.9B in 2028. (Tables 5 and 6.)

Figure 5 - 2024-2028 Room-based Video Devices Unit Forecast

Source: The Collab Collective, April 2024

Table 5 - 2024-2028 Room-based Video Devices Unit Forecast

Source: The Collab Collective, April 2024

Figure 6 - 2024-2028 Room-based Video Devices Revenue Forecast (in millions USD)

Source: The Collab Collective, April 2024

Table 6 – 2024-2028 Room-based Video Devices Revenue Forecast (in millions USD)

Source: The Collab Collective, April 2024

The global revenue growth trajectory is buoyed by PC-based and BYOD solutions, which are increasingly favored for their adaptability to hybrid work models and show a slightly larger growth opportunity than appliance-based solutions. Meanwhile, while still growing in unit terms, appliance-based solutions may face declining revenues in the second half of this estimate (years 4 and 5) due to ongoing price pressures. Appliance-based solutions will still account for the lion's share of total revenue, but the decline in ASPs will be the factor that caps its revenue growth rate.

Regional Considerations

Regional variations in market maturity and adoption rates will also significantly shape the growth trajectory of room-based video devices. The Asia-Pacific (APAC) region is projected to lead in revenue growth potential, driven by market expansion, technological adoption, and a rising demand for advanced collaboration tools. Additionally, the EMEA (Europe, Middle East, and Africa) region shows strong signs of market activity, indicating that businesses in these areas increasingly invest in room-based video solutions to support hybrid work models and enhance collaboration capabilities. Understanding these regional dynamics will be crucial for vendors aiming to capitalize on growth opportunities and effectively penetrate different markets.

The regional 5-year Compound Annual Growth Rate (CAGR) estimates provide a more nuanced view of the global market for room-based video devices, reflecting recent trends and economic conditions.

• North America is projected to see a 5.8% CAGR in units and a 2.5% CAGR in revenue. As a mature market, North America's growth is slower than previously estimated. The region remains strong in PC-based and BYOD solutions, catering to hybrid work environments' flexibility needs.
• EMEA (Europe, Middle East, and Africa) is estimated to grow at a 6.9% CAGR for units and 3.6% for revenue. This region showcases moderate growth, balancing the dynamics between mature markets in Western Europe and emerging markets in the Middle East and Africa. The adoption of cloud-based solutions is a key driver of growth in this region, aligning with broader trends towards digital transformation.
• Asia-Pacific (APAC) continues to lead with the highest growth rates, forecasted at a 7.8% CAGR for units and 5.2% for revenue. These projections, while strong, are adjusted to reflect global market realities and economic conditions. APAC's growth is driven by the increasing adoption of appliance-based solutions, as well as PC-based and BYOD options, indicating robust demand for versatile and scalable collaboration tools.
• Latin America (LATAM) is also projected to experience significant growth, with a 7.8% CAGR in units and 4.8% in revenue. Despite global economic pressures, the region retains high growth potential. Robust adoption of PC-based and BYOD solutions is a primary contributor, as businesses in LATAM seek cost-effective and flexible collaboration technologies.
  

ASP Stabilization Impact on Revenue CAGR

Our projections assume a gradual stabilization and modest improvement in Average Selling Prices (ASPs) across most categories, reflecting the market's recovery from recent economic disruptions. While unit growth trends are generally positive, revenue growth will vary by product category, influenced by these ASP changes.

Appliance-based solutions are expected to experience more moderate revenue growth than unit growth, primarily due to ongoing pressures on ASPs. Personal appliance-based solutions will likely see a steeper revenue decline, driven by continued ASP pressures. On the other hand, PC-based solutions and BYOD room peripherals are forecasted to demonstrate strong revenue growth potential. Although the revenue growth may not be as extreme as unit growth, it still indicates a robust market outlook due to potential stabilization in ASPs.

Market Evolution and Future Trends

As we project the future of room-based video devices, several key trends and market dynamics are poised to shape the industry landscape over the next five years. The industry is expected to evolve significantly, driven by technological innovations and shifts in workplace practices. Key focus areas will likely include AI-enhanced collaboration, seamless integration with hybrid work models, sustainability and energy efficiency, and improved interoperability.

AI-enhanced collaboration features are anticipated to add considerable value, especially for appliance-based and PC-based solutions. These features can enhance user experience by providing intelligent meeting management, real-time transcription, and advanced video processing capabilities. As hybrid work models become more entrenched, the demand for seamless integration across different work environments will grow. Due to their inherent flexibility and adaptability, this shift will likely benefit PC-based and Room BYOD solutions the most.

Moreover, the growing emphasis on sustainability will likely spur innovations in energy-efficient solutions. Appliance-based systems have the potential to lead in this area by integrating low-power components and environmentally friendly materials, helping organizations meet their sustainability goals while maintaining market leadership. Finally, improved interoperability will become increasingly crucial, particularly for PC-based and BYOD solutions, to ensure compatibility with various platforms and minimize friction in multi-platform environments.

In summary, the next five years for room-based video devices will be characterized by innovation, adaptation to hybrid work demands, and a focus on sustainability and interoperability. Vendors that can strategically navigate these evolving trends while addressing regional market differences will be well-positioned to thrive in this competitive landscape.

Forecast Details by Product Segment

The following sections provide forecasts and commentary on the individual product segments.

Appliance-based solution

Appliance-based video conferencing solutions continue to play a significant role in the market, demonstrating steady, albeit slower, growth over the next five years as organizations worldwide recognize their value in hybrid work environments. According to The Collab Collective's latest projections, this product segment is set to experience a moderate yet consistent expansion over the next five years.

In 2023, the market for appliance-based solutions saw the shipment of approximately 601,508 units globally. This figure is expected to grow at a 4.5% compound annual growth rate (CAGR), reaching approximately 750,545 units by 2028. While the North American market, with a projected 3.0% CAGR, remains one of the largest consumers of these devices, the APAC region stands out, forecasting a robust 6.0% CAGR. This trend underscores APAC's increasing demand for video conferencing solutions, driven by expanding digital transformation initiatives and adopting hybrid work models across businesses of all sizes.

Regionally, EMEA is expected to grow at a 4.0% CAGR, reflecting steady investments in modernizing meeting spaces. While smaller in volume, the CALA market shows a healthy 5.5% CAGR, indicating strong regional adoption and potential for further growth.

From a revenue perspective, the global market size for appliance-based solutions reached $1.94 billion in 2023. This market is anticipated to grow at a 3.1% CAGR over the forecast period, achieving a valuation of approximately $2.25 billion by 2028. Revenue growth, while slower compared to unit growth, suggests a gradual shift towards more cost-effective and standardized solutions, as well as possible competitive pricing pressures within the market.

Year-over-year growth rates show a positive trajectory following a dip in demand, with a 5.6% increase projected for 2028. This growth indicates the market is rebounding and stabilizing after recent economic uncertainties. The increased adoption of appliance-based solutions can be attributed to the maturity of Android-based appliances, which now offer feature parity with their PC-based counterparts, enhancing their appeal among IT administrators. The availability of diverse vendor options has further boosted market confidence, catering to various room sizes and meeting configurations.

Table 7 - Appliance-based solution – Sizing & Forecast

Source: The Collab Collective, April 2024

Personal Appliance-based solution

Personal appliance-based solutions, once a staple in executive offices and smaller huddle rooms, have seen a shift in demand as the market dynamics evolve. According to The Collab Collective's latest forecasts, this segment is expected to face ongoing challenges, reflected in a decline across both unit shipments and market size over the next five years.

In 2023, global shipments of personal appliance-based solutions totaled 35,940 units, with North America leading at 20,391 units. However, the overall market is projected to contract at a compound annual growth rate (CAGR) of -3.3%, with unit shipments expected to decrease to approximately 30,417 by 2028. This decline is consistent across all major regions, with North America showing a notable negative CAGR of -4.0% and EMEA following with a -3.0% CAGR. APAC and CALA are also projected to decline, albeit at a slightly slower pace of -1.0% and -1.5%, respectively.

Revenue forecasts paint a similar picture. The global market size for personal appliance-based solutions was $86.2 million in 2023 and is anticipated to shrink at a -4.3% CAGR, reaching around $69.1 million by 2028. North America remains the most significant market but faces a - -5.0 % CAGR, highlighting significant pricing pressures and reduced demand. EMEA is expected to see a -4.0% decline in revenue, while APAC and CALA are projected to decrease by -2.0% and -2.5%, respectively.

The steady decline in both unit shipments and market size indicates a shift in market preferences. Although these devices initially gained popularity as executive home office solutions during the rise of remote work, their relevance has diminished in the face of more versatile alternatives. The desktop remains a key battleground, yet the preference is leaning toward multi-functional devices like all-in-one PCs and purpose-built UC docking stations that provide integrated video conferencing capabilities. These alternatives offer greater flexibility and cost-effectiveness, appealing to organizations looking to streamline their technology investments.

Moreover, while personal appliance-based solutions still find niche applications in hotdesking, hoteling, and virtual receptionist scenarios, they face stiff competition from more adaptable and lower-cost PC-based systems. The declining growth reflects the market's broader trend towards solutions that integrate seamlessly with cloud-based services and provide users with multi-purpose functionality. This trend underscores the importance of evolving product features, such as dual-monitor capabilities, which have become critical for end-users seeking to maximize their productivity when the device is being used on a desktop.

Despite the challenges, personal appliance-based solutions are not entirely out of the race. There remains a demand for purpose-built devices that can offer dedicated video conferencing experiences, especially in environments where simplicity and reliability are prioritized. However, manufacturers must address cost-of-ownership concerns and ensure feature parity with PC-based solutions to maintain relevance. The evolution of this product segment will likely depend on its ability to adapt to the shifting demands of the modern hybrid workplace, balancing specialized functionality with the economic realities organizations face today.

In short, while personal appliance-based solutions continue to have a role in specific use cases, the market is shrinking as organizations increasingly favor more versatile and cost-effective alternatives.

Table 8 - Personal Appliance-based solution – Sizing & Forecast

Source: The Collab Collective, April 2024

PC-based Solutions

Despite the downturn from the pandemic highs in volume and revenue, PC-based solutions continue to show strong uptake in the room-based video conferencing market, with solid growth projected over the next five years. In 2023, global shipments of PC-based solutions reached 249,771 units, and this number is expected to grow at a 7.3% compound annual growth rate (CAGR), reaching around 355,584 units by 2028. North America and EMEA remain key regions, but the highest growth rates are anticipated in APAC and CALA, reflecting increasing adoption in these emerging markets.

Revenue from PC-based solutions is projected to rise from $818.3 million in 2023 to approximately $1.01 billion by 2028, with a CAGR of 4.3%. This growth underscores the continued investment in reliable and scalable video conferencing setups. IT decision-makers are drawn to the familiarity and ease of integration that PC-based systems offer, particularly within organizations already using cloud platforms like Microsoft Teams and Zoom.

Notwithstanding the increased availability of modular Android-based solutions from multiple vendors, uptake of non-PC-based solutions in larger rooms has been slow. Many IT buyers continue to favor PC-based systems as the default choice for larger spaces, where performance reliability and seamless integration with existing infrastructure are critical. This preference has maintained PC-based solutions' strong position in the market, especially for complex room configurations.

However, while these forecasts suggest robust growth for PC-based solutions, there's a degree of caution. The market has seen a growing interest in Android-based devices, with several manufacturers introducing competitive alternatives. These Android-based systems offer compelling advantages, such as ease of deployment and lower total cost of ownership. Still, the current momentum behind PC-based solutions—driven by their entrenched install base and compatibility—may provide them with a temporary advantage. This dynamic could give PC-based solutions an edge for the next two to three years, but the landscape is shifting, and Android-based solutions could gain more ground as the technology and market preferences evolve.

In conclusion, while PC-based solutions are well-positioned for near-term growth, IT buyers and vendors should closely monitor the evolving competitive landscape. The rise of Android-based alternatives, coupled with market shifts and technological advancements, could influence the long-term outlook for PC-based video conferencing solutions.

Table 9 - PC-Based Solution – Sizing & Forecast

Source: The Collab Collective, April 2024

Room BYOD

Room BYOD (Bring Your Own Device) solutions, which allow a user's laptop to host a video meeting using permanently installed room peripherals, continue to be a flexible option for many organizations. However, the market has shown some volatility, as evidenced by a notable 20.8% decline in unit sales in 2023 compared to the previous year. This drop highlights this segment's uncertainties and challenges, even as demand for video conferencing solutions grows.

Despite this downturn, The Collab Collective projects a positive outlook for Room BYOD solutions over the next five years. Global unit shipments are expected to grow at a compound annual growth rate (CAGR) of 10.0%, reaching approximately 674,215 units by 2028. The most substantial growth is anticipated in the APAC region, with a CAGR of 13.0%, followed closely by CALA at 12.0%. North America and EMEA also show strong potential, with projected CAGRs of 9.0% and 10.0%, respectively. These forecasts indicate a broadening acceptance of BYOD solutions across different regions and markets.

From a revenue standpoint, the global market size for Room BYOD solutions was $425.6 million in 2023. This market is expected to grow at a 7.0% CAGR, reaching approximately $597.4 million by 2028. North America and EMEA continue to lead in terms of market size, but APAC's rapid growth is noteworthy, indicating a rising demand for flexible and cost-effective video conferencing solutions in this region.

The appeal of Room BYOD solutions has traditionally been their cost-effectiveness and flexibility, especially for organizations that haven't standardized on a specific meeting platform or are budget-conscious. These solutions have been popular in smaller huddle rooms and focus rooms, where they can support ad-hoc meetings without needing a dedicated room system. However, the decline in sales in 2023 suggests some market hesitation, possibly driven by macroeconomic factors, shifts in organizational video strategies, or the increasing preference for native room solutions.

One emerging trend is the use of Room BYOD as a strategic hedge against uncertain office usage patterns in hybrid work environments. As companies navigate the complexities of hybrid work, many IT decision-makers view BYOD solutions as a flexible and scalable option that can adapt to varying levels of office attendance. This adaptability makes Room BYOD an appealing choice for organizations that are still experimenting with their long-term hybrid work strategies.

It's also important to note that the landscape for Room BYOD is evolving, with a new wave of managed BYOD solutions entering the market. Vendors like Crestron and Barco offer solutions addressing some of the traditional security and device management concerns associated with BYOD setups. These advancements could help mitigate some of the drawbacks of BYOD, such as inconsistent user experiences and limited management capabilities, making these solutions more attractive for organizations with stringent IT requirements.

While Room BYOD solutions are expected to see some growth over the next few years, caution is warranted. The significant decline in 2023 sales is a reminder that this segment is vulnerable to market shifts and economic fluctuations. Moreover, while BYOD offers flexibility, UC platforms like Microsoft Teams often advocate for native room systems that promise more consistent experiences and better integration with platform-specific features. The future of Room BYOD will likely depend on how well it can adapt to these evolving needs and how effectively managed BYOD solutions can bridge the gap between flexibility and control.

Table 10 - Room BYOD – Sizing & Forecast

Source: The Collab Collective, April 2024

Forecast Details by Region

Below are five-year forecasts for units and revenue categorized by region, followed by regional slices of the data and related notes and observations by The Collab Collective.

Total Units by Region

Figure 7 - Room-based Video Devices Units Forecast by Region

Note: Numbers in the tables may not add precisely to 100% due to rounding.

Source: The Collab Collective, April 2024

Table 11 - Room-based Video Devices Units Forecast by Region

Source: The Collab Collective, May 2023

Total Revenue by Region

Figure 8 Room-based Video Devices Revenue Forecast by Region (in millions USD)

Note: Numbers in the tables may not add precisely to 100% due to rounding.

Source: The Collab Collective, April 2024

Table 12 - Room-based Video Devices Revenue Forecast by Region (in millions USD)

Source: The Collab Collective, April 2024

North America Forecast

Regional notes:

North America (NA) continues to maintain its position as the largest market by revenue in the room-based video conferencing devices sector. In 2023, the region generated $1,161.4 million in revenue from 494,057 units sold. Despite the challenges faced in recent years, North America is poised for steady growth. The forecast predicts a 5-year Compound Annual Growth Rate (CAGR) of 2.5% in revenue, reaching $1,313.2 million by 2028. Unit sales are expected to grow even more robustly, with a projected 5-year CAGR of 5.8%, increasing to 654,978 units by 2028. 

This stronger unit growth compared to revenue suggests a trend towards more affordable solutions or increased competition in the market. Despite this, North America's continued revenue leadership underscores its critical importance in the global video conferencing landscape, which is driven by ongoing digital transformation and the evolution of hybrid work models in the region.

Table 13 - RVC Unit Forecast – North America

Source: The Collab Collective, May 2023

Table 14 - RVC Revenue Forecast – North America (in millions USD)as we enter 2023 

Source: The Collab Collective, May 2023

Europe, Middle East, Africa (EMEA) Forecast

Regional notes:

Europe, the Middle East, and Africa (EMEA) demonstrated resilience in 2023, generating $1,013.2 million in revenue from 436,606 units sold. While these figures represent a slight decline from the previous year, EMEA is poised for steady growth in the coming years. The forecast predicts a 5-year Compound Annual Growth Rate (CAGR) of 3.6% in revenue, reaching $1,208.8 million by 2028. Unit sales are expected to grow even more robustly, with a projected 5-year CAGR of 6.9%, increasing to 609,630 units by 2028.

Like North America, the more robust unit growth compared to revenue suggests a potential shift towards more cost-effective solutions or increased market competition. However, the positive growth trajectory in revenue and units indicates a healthy market outlook for EMEA, likely driven by ongoing digital transformation initiatives and the continued adoption of hybrid work models across the region.

Table 15 - RVC Unit Forecast – EMEA

Source: The Collab Collective, May 2023

Table 16 - RVC Revenue Forecast – EMEA (in millions USD)

Source: The Collab Collective, May 2023

Asia Pacific (APAC) Forecast

Regional notes:

The Asia-Pacific (APAC) region continues to show strong growth potential in the room-based video conferencing devices market. In 2023, APAC generated $1,001.6 million in revenue from 339,332 units sold. While these figures represent a slight decline from the previous year, APAC is forecasted to have the highest growth rate among all regions in the coming years. The projection indicates a robust 5-year Compound Annual Growth Rate (CAGR) of 5.2% in revenue, reaching $1,292.6 million by 2028. Unit sales are expected to grow even more impressively, with a projected 5-year CAGR of 7.8%, increasing to 494,526 units by 2028. 

This accelerated growth in revenue and units suggests that APAC is likely to close the gap with other regions, potentially driven by rapid digital transformation initiatives, increasing adoption of hybrid work models, and the region's economic dynamism. The stronger unit growth compared to revenue might indicate a trend towards more affordable solutions driven by cost-conscious emerging markets such as India and Indonesia.

Table 17 - RVC Unit Forecast – APAC

Source: The Collab Collective, May 2023

Table 18 - RVC Revenue Forecast – APAC (in millions USD)

Source: The Collab Collective, May 2023

Central and Latin America (CALA) Forecast

Regional notes:

Central America and Latin America (CALA) continue to represent the smallest market share in the room-based video conferencing devices sector, but they show promising growth potential. In 2023, CALA generated $90.5 million in revenue from 35,509 units sold. Despite its smaller size, CALA is projected to experience robust growth in the coming years. The forecast predicts a solid 5-year Compound Annual Growth Rate (CAGR) of 4.8% in revenue, reaching $114.7 million by 2028. Unit sales are expected to grow even more impressively, with a projected 5-year CAGR of 7.8%, increasing to 51,627 units by 2028. This accelerated growth rate, particularly in unit sales, suggests an expanding market with growing adoption of video conferencing technologies.

The higher growth rate in units compared to revenue might indicate a trend towards more affordable solutions, potentially broadening access across diverse economies in the region. Despite its smaller market size, CALA's growth trajectory underscores its importance as an emerging market in the global video conferencing landscape.

Table 19 - RVC Unit Forecast – CALA

Source: The Collab Collective, May 2023

Table 20 - RVC Revenue Forecast – CALA (in millions USD)

Source: The Collab Collective, May 2023

About Us / Document Notices

About Us

Craig Durr is the Chief Analyst and Founder of The Collab Collective, an industry analyst firm focused on workplace collaboration and communication. Through his work as an analyst, researcher, and keynote speaker, Craig has developed deep insight into the services, technologies, and devices that empower seamless connections between businesses, employees, and customers.

His expertise encompasses comprehensive market analysis, sizing projections, product evaluations, emerging trends, and end-user and buyer expectations. He has been a featured speaker in the US, India, South America, and Europe and is recognized by ARInsights as an ARchitect Power 100 analyst.

Beyond technology, Craig also researches the intricate human dimensions of work, categorizing his findings into the workforce, the workplace, and the workflows of the modern work experience. By unraveling these components, he helps to unveil the intricate interplay between technology, productivity, and business strategies essential to the future of work.

You can contact him at cdurr@collab-collective.com, on Twitter @craigdurr, or LinkedIn - https://www.linkedin.com/in/craigdurr/

The Collab Collective offers deep insights into the evolving landscape of workplace communication and collaboration, combining data-driven analysis with a nuanced understanding of the workforce, workplace, and workflows shaping today's hybrid environments. Our analysts are experts in workplace collaboration, customer experience, and employee experience technologies, as well as enterprise applications for creativity and workflow management—providing a comprehensive understanding of how these solutions drive real-world business outcomes.

Our services include syndicated market research, custom studies tailored to your business needs, and sales enablement strategies that help you connect with your target audience more effectively. At The Collab Collective, we don't just provide research; we foster collaborative partnerships that uncover the untold stories within the modern workplace.

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