The market has received a huge boost from the falling prices of bandwidth, technological advancements and deeper market penetration of high definition (HD) systems.
New analysis from Frost & Sullivan (conferencing.frost.com), European Videoconferencing Endpoints Market, finds that the market earned revenues of $252.5 million in 2007 and estimates this to reach $1,178.9 million in 2014.
The landscape of visual communication market is changing rapidly. The shift of videoconferencing from being a standalone conferencing technology to being a part of unified communication would require alteration of business direction by videoconferencing vendors. It also poses a threat by driving down the potential revenues for the standalone video solutions segment.
In addition, the end-users impatience and low tolerance to videoconferencing might affect videoconferencing adoption.
"If the users experience bad quality or technology problems while using a videoconferencing solution, they are usually reluctant to try the solution again," explains Frost & Sullivan Research Analyst Prarthana Somal. "The low tolerance of users, coupled with the increased competition faced from alternative conferencing solutions like web conferencing is impeding videoconferencing uptake."
However, the transition from integrated services digital network (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.
End-user perception of videoconferencing 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 ISDN. These product benefits, coupled with rising customer awareness, cheaper bandwidth and increased affordability of endpoints are driving the uptake of videoconferencing.
Videoconferencing is not only helping in delivering effective communication and collaboration, but also aiding organisations in meeting their larger business goals of expansion and operational cost savings. As videoconferencing is increasingly being adopted as a tool for enhancing business productivity, market participants are expected to experience deeper market penetration. The increased replacement rate, upgradation orders, and opportunities from the newer Greenfield sectors such as healthcare and government is likely to spur the growth of videoconferencing endpoints.
"Videoconferencing is now becoming imperative to the collaboration mix not only for its cost and efficiency benefits, but also for assisting closer as well as more personal and productive interactions among remote workers," notes Somal. "Real-time collaboration is fast earning a reputation as a true enhancer of business performance and organizations are increasingly investing in this technology."
High-end videoconferencing solutions such as telepresence are creating an additional 'buzz' in the market and attracting much needed publicity for visual communication. 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.
"Overall, videoconferencing is making a comeback in Europe. After displaying modest growth in the past few years, videoconferencing is catching up with the growth of other conferencing solutions," concludes Somal. "The increased growth of videoconferencing market is driven by technological advancements and deeper market penetration of HD systems, coupled with rising awareness and increased affordability of videoconferencing endpoints."
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the European videoconferencing endpoints market, then send an email to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska[.]frost.com, your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.
European Videoconferencing Endpoints Market is part of the Conferencing & Collaboration Growth Partnership Service program, which also includes research in the following markets: audio conferencing service providers, video conferencing endpoints and infrastructure and unified communications and collaboration services and applications. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.
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European Videoconferencing Endpoints Market M20C-64