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Asia-Pacific Video Conferencing Market to Grow Strongly As Enterprise Spending Recovers Says Frost & Sullivan - The Asia-Pacific video conferencing endpoints market is expected to see strong growth with revenues rising at a CAGR (compound annual growth rate) of 13.6 percent till 2016 reaching nearly US$820 million
Asia-Pacific Video Conferencing Market to Grow Strongly As Enterprise Spending Recovers Says Frost & Sullivan

 

PRZOOM - /newswire/ - Singapore, Singapore, 2010/08/11 - The Asia-Pacific video conferencing endpoints market is expected to see strong growth with revenues rising at a CAGR (compound annual growth rate) of 13.6 percent till 2016 reaching nearly US$820 million.

   
 
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Unit shipments meanwhile are predicted to grow at a CAGR of 16.3 percent (2009-2016).

"Spending on video conferencing solutions picked up in the final quarter of 2009 and has shown similar upbeat trends so far in the first half of 2010," notes Frost & Sullivan industry manager Pranabesh Nath. He expects this optimism to continue assuming the economic recovery proceeds as anticipated in most Asia-Pac markets.

Growth of the video conferencing endpoints market dropped sharply to post a modest 5.4 percent on the back of just over US$335 million revenues in 2009, as the global economic slowdown curtailed the spending ability of many enterprises.

"The corporate sector saw the sharpest decline in video conferencing investments last year, most notably the banking and finance sector," Nath says, adding that corporate cutbacks however were allayed by a rise in government sector adoption.

New analysis from Frost & Sullivan (conferencing.frost.com), Asia-Pacific Video Conferencing Endpoints Market, finds that the market - covering 14 Asia-Pac countries, including Japan - will earn estimated revenues of US$367.5 million by the close of 2010, growing 9.5 percent year-on-year; while shipments will grow by 14.1 percent to 108,434 units.

If you are interested in more information about this study, then send an email to Sarah Lourdes at sarah.lourdes[.]frost.com, with your full name, company name, title, telephone number, company email address, company website and country.

"Spending in the first three quarters of 2009 showed a decline in almost all Asia-Pacific countries, but by end-2009 enough deals were closed to bring the market back from the red," observes Nath.

"Throughout 2009, however, the video conferencing endpoints market remained active despite the global recession with new product launches from both emerging and established vendors," he adds. "High definition (HD) systems in particular witnessed a flurry of activity, with the continued penetration of popular and affordable solutions from leading vendors. As a result, almost all of the units sold in 2009 in the mid- to high-range market were high definition solutions."

Nath expects HD adoption to continue rising through to 2016, even in countries like China and India - where standard definition (SD) systems currently dominate - as unit pricing declines further and customers realise the improved usability experience with HD.

He cautions however that the issue of expensive bandwidth remains, especially for smaller enterprises in emerging countries. As video collaboration for business-to-business communication catches on, he believes that enterprises that have or are in the process of rolling out transnational private Internet protocol (IP) networks should keep future applications, such as video, in mind for their network upgrades.

"Pure IP systems are already widely deployed in urban cities of the region. As bandwidth costs continue to decline and become more available beyond these urban areas, we expect pure IP systems to see huge uptake in the mid- to long-term," says Nath.

The Asia-Pacific Video Conferencing Endpoints Market study is part of the Conferencing & Collaboration Growth Partnership Service program, which also includes research in the following markets: telepresence, web conferencing software and services, video conferencing infrastructure, audio and video conferencing services, and online enterprise collaboration and shared workspaces. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

 
 
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Asia-Pacific Video Conferencing Market to Grow Strongly As Enterprise Spending Recovers Says Frost & Sullivan

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