AI and Workspace Modernisation Propel Growth in the Global Video Conferencing Devices Sector

10.4% YoY expansion in in 2024 prompted by AI innovation and the return to in-person collaboration

LONDON, March 31, 2025 /PRNewswire/ -- The workplace continues to undergo structural transformations, with evolving work styles, AI-powered meeting enhancements, and sustainability initiatives reshaping the demand for collaboration technologies. The adoption of video conferencing devices is expected to surge, as the penetration rate in meeting rooms is expected to more than double over the forecast period, driven by organisations shifting toward video-first communication strategies.

The global video conferencing devices market has made a strong recovery after a decline in 2023, registering 10.4% year-over-year (YoY) growth in 2024 and reaching $3.80 billion in revenue, according to Frost & Sullivan. Fuelled by increasing technology density, advances in AI-driven collaboration, and the modernisation of workspaces, the market is on a trajectory for accelerated growth, as revenue is expected to more than double to $8.12 billion, with unit shipments increasing to 7.7 million by the end of the forecast period in 2029.

AI has emerged as a key market accelerator, eliminating many friction points that previously hindered widespread video adoption. AI-driven innovations - ranging from automated meeting transcription and real-time translation to smart camera framing and noise suppression - are revolutionising video conferencing experiences, making them more seamless, engaging, personalised, and productive.

"The market is witnessing an unprecedented wave of innovation, where AI and data-driven insights are at the forefront," states Roopam Jain, VP and Growth Expert at Frost & Sullivan. "Beyond simply enabling video in meeting rooms, organisations are prioritising an experiential workplace, where hardware, software, and services are holistically integrated to enhance usability, efficiency, and management," she continues.

Market Outlook and Leading Growth Segments

In 2024, collaboration bars and boards led the market surge, with room endpoints experiencing the fastest growth, rising 14.7% in revenue and 12.5% in units YoY. Over the next five years, room endpoints are projected to be the largest growth segment, with an expected 18.7% revenue CAGR, followed by USB conference cameras at 9.4% CAGR, and personal video devices at 5.8% CAGR.

The top vendors- Cisco, Crestron, Huawei, Logitech, Poly, Neat, Lenovo, Q-SYS, and Yealink -differentiate themselves through superior innovation and performance, including enhanced user experience, advanced AI-powered features, seamless interoperability, and other competitive attributes. The top five vendors collectively hold 55.6% of the global video conferencing devices market.

"AI-driven collaboration solutions are no longer optional - they are essential for businesses looking to not only modernise, but to future-proof their workplaces," adds Jain. "Organisations and industry stakeholders must leverage AI-powered video innovations and integrate hardware-software ecosystems to stay ahead in an increasingly competitive market," Jain concludes.

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Editor's Note

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Kristina Menzefricke
Marketing & Communications
Global Customer Experience, Frost & Sullivan
kristina.menzefricke@frost.com