Increased adoption of videoconferencing as part of unified communications to drive growth
European video-conferencing endpoints market grew to $518.3m in 2010, growing at a rate of 20.3% from the previous year, according to a study by Frost & Sullivan.
The study, ‘European Videoconferencing Endpoints Market’, said that video-conferencing comes as a key solution for companies that are looking to build and consolidate business relations while saving time and money.
Frost & Sullivan Research Analyst Iwona Petruczynik said the need for companies to reduce their travel cost while maintaining communication with their workers and clients will drive the European videoconferencing endpoints market.
Petruczynik added, "Increasingly stringent environment policies imposed by the European Parliament will also promote market development."
The pace of adoption in Europe will remain strong over the next few years, as the new generation of videoconferencing systems offer enhanced value proposition and demand levels continue to remain high, said the report.
There are other uses of video-conferencing as well.
"Educators can use videoconferencing as a convenient method for interactive access to classes, meetings and distance learning while physicians can leverage it to provide consultations and patient diagnostics," said Petruczynik.
"Courts can deploy it to increase prison security and conduct video arrangements, while government offices can employ it to track daily strategic missions."
However, the difficulty of attaching a hard-dollar ROI to the benefits of visual communications continues to prevent large-scale investments, said the report.
"The misconception that videoconferencing services are communication tools aimed at large enterprises is hindering its adoption among small and medium businesses (SMBs)," remarks Petruczynik.
"Moreover, weak infrastructure and low bandwidth, especially in Central and Eastern Europe, are having an adverse effect on the videoconferencing endpoints market."
The videoconferencing market revenue growth will be generated due to increased adoption of video-conferencing as part of unified communications solutions, as well as the rising penetration of video in SMBs, the report says.
"In addition, efforts by vendors and customers in verticals like government and healthcare (telemedicine) to harness the power of videoconferencing are leading to a wider application base. Both these factors will expand the potential target market for videoconferencing systems and lead to increased adoption," concludes Petruczynik.