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Improved Interoperability to Sustain the Growth of the Videoconferencing Infrastructure Market, Finds Frost & Sullivan
Continuous need to support a wide variety of end points for an increasing number of users boosts market

MOUNTAIN VIEW, Calif., Nov. 8, 2012 /PRNewswire/ -- The global videoconferencing infrastructure market surged to a peak in 2010, when it experienced record growth. Additionally in 2011 videoconferencing infrastructure technology developments broke new barriers to gain more robust capabilities and flexible deployment options.

The market is benefitting considerably from the convergence of multiple sustainable drivers such as cost savings from travel avoidance, higher productivity, favorable environmental impact, and a growing trend to favor richer forms of communications.

New research from Frost & Sullivan (http://www.conferencing.frost.com), Analysis of the Global Videoconferencing Infrastructure Market, finds that the market earned revenues of $746.6 million in 2011, growing at a strong 26.8 percent over the previous year. The revenues are expected to reach $1.92 billion in 2017, at a compound annual growth rate of 17 percent. Multipoint control units (MCUs) continue to account for the highest revenue share; however, revenue share from non-MCU products increased in the total market in 2011.

If you are interested in more information on this research, please send an email to Mireya Espinoza, Corporate Communications, at mireya.espinoza@frost.com, with your full name, company name, title, telephone number, company email address, company Web site, city, state and country.

The top three vendors control 80 percent of the revenue share but the abundant opportunities have enabled nearly all participants to grow. Partnerships and broad portfolios are vital for all competitors to make the most of the favorable market conditions.

"Emerging prospects in mobile and desktop video, and integration with unified communications solutions are stoking demand for videoconferencing infrastructure," said Frost & Sullivan Program Manager Rob Arnold. "The ability to offer an end-to-end portfolio, either directly or through partnerships, has become a necessity, especially for smaller vendors."

On the flip side, costly upgrades to support new components and capabilities, as well as the cost of bandwidth consumption required to support videoconferencing are key issues for decision makers. Further, concerns about the ease of use and management, as well as interoperability of multi-vendor solutions and of new technology with legacy products restrain its widespread adoption.

Some of these issues can be assuaged by transitioning from the traditional hardware-based business model to the more dynamic and flexible software and services models.

Virtualization and cloud are two of the biggest development and marketing trends this year. Software-based components, cloud services, and bandwidth management will change the market as we know it today. These factors have the potential to lower entry barriers for competitors while posing strategic risk to established business models. Further, these factors aim to reduce the total cost of ownership and enable more pervasive deployment among organizations of all sizes.

"The great potential for business transformation using cloud-based video services will result in radical market shifts," noted Frost & Sullivan Industry Director Roopam Jain. "Public clouds and managed services are emerging to offer options to new users of videoconferencing and providers of these services need to build and continually enhance their infrastructure."

Analysis of the Global Videoconferencing Infrastructure Market is part of the Conferencing & Collaboration Growth Partnership Services program, which also includes research in the following markets: Global Videoconferencing and Telepresence Endpoints Market, Global Desktop Videoconferencing Market, and North America Videoconferencing Services Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us:     Start the discussion

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Analysis of the Global Videoconferencing Infrastructure Market
NB0E-64

Contact:
Mireya Espinoza
Corporate Communications – North America
P: 210. 247.3870
F: 210.348.1003
E: mireya.espinoza@frost.com

http://www.frost.com

SOURCE Frost & Sullivan

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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