Videoconferencing Infrastructure Market Rides Piggy Back on the Success of the Endpoints Market

Business Wire,  June 10, 2008  

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LONDON -- With videoconferencing endpoints flying off the shelves in 2007, the tepid videoconferencing infrastructure systems market has a move on. The market has been mirroring the high growth in the endpoints market, since infrastructure is essential to support the increased installation of endpoints.

New analysis from Frost & Sullivan (http://www.conferencing.frost.com), European Videoconferencing Infrastructure Market, finds that the market earned revenues of $54.9 million in 2007 and estimates this to reach $98.5 million in 2010.

"The increased availability of affordable bandwidth and growing adoption of IP are creating a need for businesses to upgrade their systems and invest in infrastructure," says Frost & Sullivan Industry Analyst Prarthana Somal. "This, coupled with the increasing popularity of high definition (HD) videoconferencing systems and high growth observed in videoconferencing endpoints market, is spurring the sales of videoconferencing infrastructure."

However, the market is not likely to find the going completely smooth. The precarious state of the world economy and more specifically, the U.S. economy might make some enterprises defer their capital expenditure on videoconferencing infrastructure for up to 12 months. The delay in enterprise buying decisions will not have any significant impact on the enterprise business performance but can affect the sales of videoconferencing infrastructure.

Market participants can take heart from the raid globalization of business operations across industries and markets, which accelerates the development of distributed enterprise and virtual teams. This generates demand for effective collaboration and communications technology, which in turn, aids the videoconferencing infrastructure market.

"The continuous technological enhancement of products, delivering greater functionality at a better price, is also driving up the sales of videoconferencing infrastructure products," notes Somal. "Further, with organisations displaying increased environmental consciousness and adopting greener corporate policies, videoconferencing presents itself as a perfect solution for reducing carbon footprints and travel costs."

Vendors are likely to earn a significant per cent of their revenue from the bridges segment, but as the market develops and matures, enterprises will increasingly opt for a blend of bridges and other advanced infrastructure applications such as gateways, gatekeepers and management tools.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the videoconferencing infrastructure market, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

European Videoconferencing Infrastructure Market is part of the Conferencing & Collaboration Growth Partnership Service programme, which also includes research in the following markets: audio conferencing service providers, video conferencing endpoints and infrastructures, as well as unified communications and collaboration services and applications. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership[TM] empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan's Growth Partnerships, visit http://www.frost.com.

European Videoconferencing Infrastructure Market

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