World Video Conferencing Market to Reach US$10.8 Billion by 2015, According to New Report by Global Industry Analysts, Inc.
GIA announces the release of a comprehensive global report on Video Conferencing market. Although currently tempered by the recent world economic recession, global market for video conferencing is expected recover poise and gain steady momentum in the medium-to-long term period to reach US$10.8 billion by the year 2015. Primary factors fingered to drive this growth include resurgence in business activity, renewed focus on cost savings exerted by post recession cost wary companies, continuing globalization of businesses, rising mobile workforce and greenfield deployments among small-and medium-sized businesses (SMBs), and increase in deployments at executive systems and room systems. Increasing awareness on benefits of usage and encouraging demand from Asia-Pacific also augur well for the market.
San Jose, California (Vocus) October 29, 2010
The prolonged world economic recession has dampened enterprise communication markets, especially so in the developed countries. Despite cost advantages of innovative technologies, companies continue to remain wary of their investments. With the financial crisis led economic slowdown negatively impacting every company’s IT structure, world market for video conferencing stood significantly weakened during 2009 and 2010. Although popularly opined to be a recession proof IT investment, by virtue of its cost saving benefits, video conferencing nevertheless weakened under the financial pressure exerted by the stressed economic climate. Although important, Telepresence benefits, such as, reduction in corporate travel budgets, reduced costs of managing a dispersed workforce, and reduced carbon footprint, have been unable to completely stem the market’s erosion in the rate of growth. This is primarily because the length and depth of the current recession has been significant, and unusually pronounced and the contraction in business activity has been widespread across diverse industries including the traditionally resilient vectors of the IT industry.
Budgetary constraints, lack of capital for investments in IT assets and the general strategy of “doing more with less”, took its toll especially on the video conferencing systems market as spends on equipments took a steep fall. Lack of strong budgets to fund equipment upgradation and replacement has been cited as a major factor dragging down growth as a result of companies throwing deployment of video conferencing infrastructure and endpoints for regional offices onto the backburner until signs of an economic thaw. As a result of precautionary and reactionary measures adopted by companies, the years 2009, and 2010 notably witnessed declines in video conferencing investments especially in the banking and financial end-use sector. Revenues in the market also remained constrained as a result of migrating end-user preferences towards cheaper, and inexpensive smaller room/desktop videoconferencing/HD systems away from large room, immersive video conferencing systems While corporate spending on video conferencing solutions and endpoint remained muted, government investments in the technology withstood the pressure. The recession added to the pressure on the profitability of providers of on-demand video conferencing services that are already bogged down by steady declines in falling per minute pricing.
Despite the current struggles, outlook for video conferencing in the post recession period remains healthy given the fact that video/voice communications represent a mission-critical function for all enterprises across the world. Also, monetary cutbacks are just temporary strategies for the preservation of liquidity, and once the global economic scenario improves, companies will inevitability splurge on video conferencing solutions as a measure to optimize costs. The ability to collaborate across time zones and geographies is critical in decentralized working environments that need collaborative horizontal relationships within an enterprise. Although the impact of recession is expected to linger on into the immediate future, given the yet low visibility in economic recovery, companies are expected to get their act together in stemming any further delay in investing in efficiency-enhancing solutions such as video conferencing. Additionally, in the post recession period “Agility” will emerge to become a powerful tool for companies to recover and fight the lingering aftershocks of the global recession. Also, technology innovation resulting in improved video and audio quality bodes well for the faster adoption of video conferencing solutions.
As stated by the new market research report published on video conferencing, the US continues to remain the largest regional market. Asia-Pacific remains the fastest growing regional market, surging at a CAGR of more than 6.0% over the analysis period 2007-2015. Burgeoning economies, higher spending power, growth in wireless industry and fast developing IP infrastructure, are creating steady demand for video conferencing technology in the Asia-Pacific market. Regional powerhouses such as China and India are the primary growth drivers for video conferencing technology in the region. Video Conferencing Services Market represents the most prominent segment, growing at a CAGR of more than 4.3% over the analysis period. Improved quality, and ease-of-use of the videoconference services, have improved their degree of operation, thereby setting the pace for both growth and profitability in this segment.
Key players listed in the report include Alcatel-Lucent, AT&T Inc., Avaya, Inc., BT Conferencing, Wire One Communications, Inc., Emblaze-VCON Ltd., Global Crossing Limited, InterCall, Inc., Polycom, Inc., Sony Electronics, Inc., Sprint Nextel Corporation, TANDBERG, Verizon Business, and VTEL Products Corporation Inc.
The research report titled “Video Conferencing: A Global Strategic Business Report” announced by Global Industry Analysts, Inc., provides a comprehensive review of market trends, drivers, issues company profiles, mergers, acquisitions and other strategic industry activities. The report provides market estimates and projections in (US$) for US, Canada, Japan, Europe (France, Germany, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific, and Latin America, among others. Market segments analyzed in the report include Video Conferencing Systems (IP Systems, and ISDN Systems), and Video Conferencing Services (IP Services, ISDN Services, and Other Services)
For more details about this comprehensive market research report, please visit –
Http://www. strategyr. com/Video_Conferencing_Market_Report. asp
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a reputed publisher of off-the-shelf market research. Founded in 1987, the company is globally recognized as one of the world’s largest market research publishers. The company employs over 800 people worldwide and publishes more than 1200 full-scale research reports each year. Additionally, the company also offers thousands of smaller research products including company reports, market trend reports, and industry reports encompassing all major industries worldwide.
Global Industry Analysts, Inc.
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