Adoption of videoconferencing for reducing cost drives the market growth
European videoconferencing endpoints market has earned revenues of $383.6m in 2009 and is estimated to reach $1.03bn in 2015 at a compound annual growth rate of 18%, according to a new analysis from Frost & Sullivan.
The firm said that videoconferencing has proved to be a viable solution for companies that are reducing their travel expenditure, thereby boosting the European videoconferencing endpoints market growth.
According to Frost & Sullivan, the major growth factors of the videoconferencing endpoints market in Europe include, the need for companies to decrease travel expenses, search for alternative ways to meet their workers and clients, and stringent environment policies imposed by the European Parliament.
In addition, videoconferencing is also stepping up the decision making process and enhancing teamwork in the more than ever dispersed workforce.
However, the firm said that the European videoconferencing endpoints market is restrained by factors such as, misconception that videoconferencing services are communication tools used only by large enterprises, poor infrastructure and low bandwidth, especially in the Central and Eastern Europe (CEE).
Iwona Petruczynik, research analyst at Frost & Sullivan, said: “The videoconferencing endpoints market has been witnessing a slow transformation in the recent years, largely attributed to the introduction of high-quality products, such as high-definition conferencing and telepresence, the market’s shift towards converged audio, video and web conferencing solutions, and integration with other existing collaborative applications.
“The two main challenges with which the market is constantly battling are – the long-standing belief that videoconferencing is a complicated tool, reserved only for the top level management in large enterprises, and the rise of unified communications (UC), where audio, web, and video-conferencing tools are converging.”