South Korea Video Conferencing Hardware Market Outlook to 2028

Market Overview:

A rapidly evolving market with immense growth potential South Korea video conferencing hardware market is being driven by technological advancements, increasing digitalization and growth in hybrid conduct of business across borders. Physical devices and equipment such as monitors/displays, USB cameras, and codecs; they directly impact the quality and user experience of video communication.

Fairly Consolidated Market with presence of 15-20 players, Logitech and Cisco being the top players contributing around 45% revenue share generated in the industry in 2022. Endpoints, conferencing platforms, streaming and recording platforms, video network services, management platforms and network are the major components of a video conferencing solution. The video conferencing hardware market in South Korea is characterized by the presence of major international players with Logitech, Cisco and Poly being the industry leaders.

Zoom is the most preferred video conferencing platform used by organizations capturing around 40% of the market followed by Teams with factors like high internet penetration, hybrid work culture driving growth. Major video conferencing platforms can be compared across the maximum connections provided, price, web access and features like screen sharing, 1:1 chat, stickers and chatbot support. The video conferencing hardware market in South Korea is characterized by the presence of major international players with Logitech, Cisco and Poly being the industry leaders.

South Korea Video Conferencing Hardware Market Analysis

• The South Korean video conferencing market is undergoing rapid transformation due to technological advancements and changing work dynamics, with virtual collaboration becoming a vital aspect of business operations.
• Deep integration with software ecosystems and overall tools becomes standard, and products are segmented for specific use cases.
• Reach extending into various sectors beyond traditional business meetings, including healthcare, education, and cultural and entertainment events. Compact IP-based all-in one endpoint device with integrated solutions has seen a rise.
• Enterprises are increasingly seeking technology-enabled solutions that offer all-in-one integrated systems to promote efficiency.
• The increased adoption rate of 63% of video conferencing among enterprises in South Korea boosted the demand for such devices. The rise of small, collaborative huddle rooms has led to the increasing preference for such video conferencing hardware solutions.

Key Trends by Market Segment:

By Hardware Type: In the Video Conferencing Hardware Market, endpoints have emerged as the predominant segment, capturing a majority share. This dominance can be attributed to the widespread adoption of video conferencing platforms such as Zoom, Microsoft Teams, Google Meet, and others, which increasingly integrate seamlessly with endpoint devices. The surge in remote work, virtual collaboration, and the need for efficient communication solutions has propelled the demand for endpoints.

By End Users: Engineering and IT Companies together generate majority of the total revenue in Video Conferencing Hardware Market followed by other industries like Academia, Financial, Healthcare and more. Moreover, the increasing reliance on virtual meetings and collaborative tools in these industries contributes significantly to the market share. Beyond Engineering and IT, various sectors such as Academia, Financial, and Healthcare also contribute substantially to the revenue.

By Region: In 2022, Seoul emerged as the epicenter of commercial activity in South Korea, dominating the market with the highest number of commercial establishments and capturing a substantial majority share of approximately 65%. This pronounced market presence can be attributed to several factors that underscore Seoul's economic significance. As the capital and largest city of South Korea, Seoul serves as the country's political, cultural, and economic hub. Its dynamic business environment, diverse consumer base, and extensive infrastructure make it an attractive location for businesses across various sectors. Following Seoul, cities like Busan and Daejeon also play significant roles, reflecting the multifaceted economic landscape of South Korea.

Competitive Landscape:

Major Players in South Korea Video Conferencing Hardware Market

• Logitech, Poly and Cisco provides multiple video conferencing hardware solutions across USB cameras, monitors and CODECs with Cisco being present in both infrastructure and endpoints market.
• Huawei, Yealink and Aver offers multi-point video conferencing solutions as well as various types of USB cameras and monitor with Huawei following an extensive value chain consisting of multiple levels.
• These companies are offering specific solutions in video conferencing market with Neat and Maxhub offering modern-age USB camera bars and monitors.
• Video conferencing endpoints market in South Korea is fairly consolidated with Logitech, Cisco and Poly capturing ~60% of the revenue generated in 2022.
• Logitech, Poly and Cisco together accounted for ~75% of the Small/Medium Size Meeting Room USB Cameras Market in 2022.

Recent Developments:

• Logitech emerged as the leader leaving behind Cisco, Poly owing to its technology and attractive pricing and the shift in preferences from CODEC-based devices to USB Cameras.
• Yealink and Neat are the companies actively entering in cloud VC market in recent years.
• Around 50% of the SMEs in South Korea currently deploy video conferencing owing to increasing preferences for all-in-one and multi-purpose devices among SMEs.

Future Outlook:

• The market will grow at a CAGR of 5.4% during 2022-2028 due to technological advancements, integration of endpoints and increasing preference among SMEs.
• The VC hardware market is expected to rebound from 2024 onwards as the macroeconomic headwinds settle down.
• Technological advancements like integration of AR and IoT technologies and development of all-in-one endpoint devices.
• Increase in demand among SMEs for conferencing and collaboration tools and hardware especially after the covid-19 pandemic
• Continued transition of various businesses to remote working and trend of geographically scattered businesses
• Integrated environmental controls in video conferencing endpoints enabling organizations to monitor and regulate air quality, temperature and lighting resulting in efficient energy savings