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Video Conferencing Software Developers in the US - Market Research Report (2014-2029)

Gavin Ross Gavin Ross New York, United States Last Updated: August 2024 NAICS OD4594

Revenue

$12.5bn

2024

$12.5bn

Past 5-Year Growth

Profit

$X.Xbn

Employees

22,177

Businesses

105

Wages

$X.Xbn

Video Conferencing Software Developers in the US industry analysis

Over the past five years, video conferencing software developers have experienced unprecedented growth, largely driven by the COVID-19 pandemic and the resultant shift towards remote and hybrid work models. Organizations across all sectors were compelled to adopt these platforms to remain functional, thereby accelerating digitization. Enhanced features like screen sharing, breakout rooms and real-time collaboration have become essential to maintaining productivity. As a result, the integration and functionality of video conferencing tools have evolved significantly, forming the pillar of Unified Communications as a Service (UCaaS) models, which offer comprehensive enterprise-level solutions. Industry revenue is estimated to grow at a CAGR of 9.0% to $12.5 billion over the past five years, including an increase of 0.6% in 2024 alone.

Trends and Insights

  • Hybrid work models demand advanced video conferencing features. As employees move between home and office environments, organizations require seamless integration of video conferencing tools to maintain productivity and collaboration.
  • The finance sector is heavily investing in advanced video conferencing tools. This shift is driven by the need for secure and compliant communication as more finance professionals work remotely.
  • The West, especially Silicon Valley, is a prime location for video conferencing developers due to its tech innovation ecosystem. Top talent and major tech companies in the area create a fertile ground for advancements in the field.
  • Compliance with stringent regulations is a significant barrier for new entrants. Companies must invest heavily to ensure their software meets data security and privacy standards like HIPAA and GDPR.

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  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of 9.0 % over the past five years, to reach an estimated $12.5bn in 2024.

Trends and Insights

Hybrid work revolution is the new normal in remote collaboration

  • Hybrid work models have significantly increased, with many companies allowing employees to work both remotely and in-office. According to a 2021 McKinsey survey, 52.0% of employees prefer a hybrid work arrangement, necessitating reliable video conferencing tools to maintain productivity and collaboration.
  • Additional trends and insights available with purchase
Video Conferencing Software Developers in the US
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Market size is projected to grow over the next five years.

Trends and Insights

Biggest companies in the Video Conferencing Software Developers in the US

Company
Market Share (%)
2024
Revenue ($m)
2024
Profit ($m)
2024
Profit Margin (%)
2024
Microsoft Corporation
5,164.7
3,874.2
75.0
Zoom Video Communications, Inc.
2,488.3
606.8
24.4
Google Inc.
896.8
239.6
26.7

To view the market share and analysis for all 5 top companies in this industry, view purchase options.

Products & Services Segmentation

Video Conferencing Software Developers in the US
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Video conferencing software, Webinar software and UCaaS. Video conferencing software is the largest segment of the Video Conferencing Software Developers in the US.

Trends and Insights

Video conferencing software is revolutionizing communication and work dynamics

  • Video conferencing software enables real-time video and audio communication between users in different locations. Often equipped with features like screen sharing, chat and collaboration tools, this technology has become essential for both professional and personal communication.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this industry develop software and systems for online conferencing, which enables multiple individuals to communicate and share information simultaneously across geographically dispersed locations over the internet. Most vendors also provide either a recorded copy of an event or a means for the user to record an event.

What's included in this industry?

Development of standalone video conferencing softwareDevelopment of unified communications as a services platformDevelopment of webinar software

Companies

Microsoft CorporationZoom Video Communications, Inc.Google Inc.

Purchase this report to view all 5 major companies in this industry.

Related Terms

UNIFIED COMMUNICATION AS A SERVICE (UCAAS)SOFTWARE AS A SERVICECLOUD COMPUTING

Industry Code

NAICS 2017

NAICS 51121 - Video Conferencing Software Developers in the US

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

Hybrid work models demand advanced video conferencing features. As employees move between home and office environments, organizations require seamless integration of video co...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The finance sector is heavily investing in advanced video conferencing tools. This shift is driven by the need for secure and compliant communication as more finance professi...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The West, especially Silicon Valley, is a prime location for video conferencing developers due to its tech innovation ecosystem. Top talent and major tech companies in the ar...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each state
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each state in 2024
  • Number and share of revenue each state accounts for in 2024
  • Number and share of wages each state accounts for in 2024
  • Number and share of employees in each state in 2024

Detailed analysis

  • Geographic spread of the industry across North America, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Compliance with stringent regulations is a significant barrier for new entrants. Companies must invest heavily to ensure their software meets data security and privacy standa...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Microsoft is focusing on integration and AI-powered features. Microsoft Teams has integrated new AI-powered enhancements, such as real-time language translation and advanced ...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of Microsoft Corporation's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Zoom Video Communications, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Google Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 2 additional companies

Detailed analysis

  • Description and key data for Microsoft Corporation, and factors influencing its performance in the industry
  • Description and key data for Zoom Video Communications, Inc., and factors influencing its performance in the industry
  • Description and key data for Google Inc., and factors influencing its performance in the industry
  • Description, key data and performance trends for 2 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

Government support encourages innovation and protection for tech companies. The US government offers a range of support mechanisms such as tariffs, SBIR grants and R&D tax cr...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Labor costs are high due to specialized skill sets. Developing robust video conferencing solutions requires expertise in programming, cybersecurity and networking, leading to...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Industry Multiples (2017-2022)
  • Industry Tax Structure (2017-2022)
  • Income Statement (2017-2022)
  • Balance Sheet (2017-2022)
  • Liquidity Ratios (2017-2022)
  • Coverage Ratios (2017-2022)
  • Leverage Ratios  (2017-2022)
  • Operating Ratios (2017-2022)
  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Video Conferencing Software Developers in the US industry in United States in 2024?

The market size of the Video Conferencing Software Developers in the US industry in United States is $12.5bn in 2024.

How many businesses are there in the Video Conferencing Software Developers in the US industry in 2024?

There are 105 businesses in the Video Conferencing Software Developers in the US industry in United States, which has grown at a CAGR of 13.8 % between 2019 and 2024.

Has the Video Conferencing Software Developers in the US industry in United States grown or declined over the past 5 years?

The market size of the Video Conferencing Software Developers in the US industry in United States has been growing at a CAGR of 9.0 % between 2019 and 2024.

What is the forecast growth of the Video Conferencing Software Developers in the US industry in United States over the next 5 years?

Over the next five years, the Video Conferencing Software Developers in the US industry in United States is expected to grow.

What are the biggest companies in the Video Conferencing Software Developers in the US market in United States?

The biggest companies operating in the Video Conferencing Software Developers market in United States are Microsoft Corporation, Zoom Video Communications, Inc. and Google Inc.

What does the Video Conferencing Software Developers in the US in United States include?

Development of standalone video conferencing software and Development of unified communications as a services platform are part of the Video Conferencing Software Developers in the US industry.

Which companies have the highest market share in the Video Conferencing Software Developers in the US in United States?

The company holding the most market share in United States is Microsoft Corporation.

How competitive is the Video Conferencing Software Developers in the US industry in United States?

The level of competition is moderate and increasing in the Video Conferencing Software Developers in the US industry in United States.

Related Industries

Widen your competitive advantage with related industries

Competitors

  • There are no industries to display.

Complementors

  • Audio & Video Equipment Manufacturing in the US
  • Computer & Packaged Software Wholesaling in the US
  • Software Publishing in the US
  • Business Analytics & Enterprise Software Publishing in the US

International industries

  • Software Publishing in Canada
  • Software Publishing in Australia
  • Software Publishing in the UK

View all industries in United States

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IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

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Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in the US include: 

  • US Census Bureau
  • US Bureau of Labor Statistics
  • US International Trade Commission

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

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