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Videoconferencing Market Rallies
According to New Report from Wainhouse Research
According to New Report from Wainhouse Research
Q1/2004 shows industry growth at phenomenal 27% annually;
long range forecast indicates over 15% compound annual growth rate
long range forecast indicates over 15% compound annual growth rate
June 23, 2004, Brookline MA - According to a new report released by Wainhouse Research, the enterprise videoconferencing industry is back on its traditional 25%+ growth track, after a multi-year slump. Unit shipments are showing strong growth across the globe and average selling prices are stabilizing across all product lines. According to the firm, the traditional videoconferencing industry has experienced five consecutive quarters of unit growth, driven by improvements in endpoints and networks and by market maturation and is poised for mainstream enterprise deployments.
The report forecasts that the market for videoconferencing room systems will grow from approximately $530 million in 2003 to just shy of $1.1 billion in 2008, despite gradual declines in equipment selling prices and technology shifts enabling lower cost solutions.
Major trends driving industry growth include continued pressure on the enterprise market to contain costs and drive efficiencies; the availability of integrated conferencing and collaboration tools that make videoconferencing easier to use; the entry into the market of major players such as Microsoft, Avaya, Cisco, Oracle, and IBM Lotus; the integration of video with other enterprise desktop software; new high performance algorithms that deliver superior audio-video quality; and lower cost networks and endpoints for both room and personal systems.
"We're finally beginning to see some traction in running rich media conferencing and collaboration over IP networks," states Andrew W. Davis, managing partner at Wainhouse Research. "The fear of running real-time communications over the enterprise LAN is beginning to dissipate, at the same time that web conferencing and instant messaging are changing the rich media conferencing paradigm. The bottom line is that the products and services have improved continuously and are now able to overcome the behavioral and psychological issues associated with video to the enterprise desktop."
The explosive popularity of web conferencing and IM with its presence metaphor is causing a re-examination of how videoconferencing endpoints should fit in to the whole spectrum of rich media conferencing. The report forecasts that personal videoconferencing will become widely adopted, but in a different form from that predicted in the past - video will be an add-on feature rather than a stand-alone application, driving the market to 20,000,000 software-based annual units. The market study forecasts industry factory revenues for hardware-based personal systems growing from about $21 million in 2003 to just shy of $180 million in 2008, producing a compounded growth rate of about 53%.
This report presents a comprehensive study of commercial-grade, standards-compatible, group and personal videoconferencing endpoints. Included in this report is an analysis of the current state of the market, a review of the underlying technologies, background and analysis of 25 vendors, current market sizing, our 5-year forecast by product segment, results of an online survey from over 500 respondents, and comprehensive product matrices for each supplier across all product types.
Vendors covered in this page report include Aethra, D-Link, Exovision, Huawei, Marconi, Polycom, Scotty Tele-Transport, Sony, TANDBERG, Teleportec, TeleSuite, Teliris, Vbrick, VCON, VTEL, Zoom, and ZTE.
This report is Volume 2 of Wainhouse Research's annual three-part study covering the conferencing industry. Volume 1 covers infrastructure products and technologies and Volume 3 covers service providers. Details, including an executive summary and table of contents, are available at www.wainhouse.com.
Wainhouse Research is an independent market research firm that focuses on critical issues in rich media communications. The company conducts multi-client and custom research studies, provides strategy advice to vendors and end users, publishes a variety of reports, and delivers public and private seminars.
Contact Andrew Davis, andrewwd@wainhouse.com
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