Video Conferencing Sales Rising

‘It’s official’ videoconferencing is fast becoming the conferencing solution of choice

  This Frost & Sullivan research service titled “European Videoconferencing Endpoints Market” reviews and analyses the videoconferencing market in Europe. It explores the major drivers and restraints governing videoconferencing endpoints market, and examines videoconferencing group systems and desktop system segments in detail.

After a few tepid years, videoconferencing is fast becoming the conferencing solution of choice on the back of technological advancements and deeper market penetration of high definition (HD) systems. End-user perception of this technology has taken a turn for the better due to its improved capabilities such as higher picture resolution, enhanced reliability, better sound quality, ease of use and connection through the Internet rather than integrated services digital network (ISDN). These product benefits, coupled with rising customer awareness, cheaper bandwidth, and increased affordability of videoconferencing endpoints, are driving the uptake of the solutions.

The superior features, while helping videoconferencing offer effective communication and collaboration, also aid organisations in meeting their larger business goals of expansion and operational cost savings. As videoconferencing is being increasingly adopted as a tool for enhancing business productivity, market participants are expected to experience deeper market penetration. The increased replacement rate, upgrade orders and opportunities from the newer Greenfield sectors such as healthcare and government are likely to spur the growth of videoconferencing endpoints. “High-end videoconferencing solutions such as telepresence are creating an additional ‘buzz’ in the market and are attracting much needed publicity for visual communication,” says the analyst of this research. “This, in turn, has helped increase the awareness and sale of high-end and mid-range HD systems, as telepresence solutions remain expensive for the majority.”

Migration to IP to Catalyse the Large-scale Adoption of Videoconferencing

End users generally suffer from low technology tolerance with regard to videoconferencing. If they have experienced bad quality or technology problems while using the videoconferencing solution, they are usually reluctant to try the solution again. This issue has been compounded by the increased competition from alternative, less pricey solutions such as web conferencing. However, the transition from ISDN to IP-based networks has greatly worked in favour of videoconferencing solution providers, as IP networks allow them to offer more services at lower costs. “Even though many vendors offer dual mode (IP/ISDN) endpoints, most solutions are deployed over IP,” notes the analyst. “The migration from ISDN to IP is mainly due to better reliability and management, cost efficiencies, and convergence of video, voice and data on IP network.” In regions such as the Nordics, the United Kingdom and Germany, which already have a high-quality network in place, the switch to IP is proceeding smoothly and rapidly. However, market participants will have to strategise differently for some regions such as Central and Eastern Europe, which have poor IP infrastructure and higher bandwidth costs.

Another market segment that is likely to be affected by high prices and bandwidth requirements is the end-to-end HD videoconferencing solution. Although standard definition (SD) systems are more affordable, HD systems are expected steal a march over them, as their prices have dropped and a wider range of products are available from all major manufacturers. “Moreover, the promotion of telepresence by major communication vendors has enhanced the awareness of ‘next-generation’ visual communications and raised the bar for both audio and video quality,” observes the analyst. “The growing awareness and appreciation of HD as an ‘aspirational’ standard for visual presentation is further boosting the market for this product and driving up revenue in the overall market.”


Source – Business Wire