Emerging economies continue to invest in videoconferencing infrastructure 
ConvergenceAsia staff
26/05/2008

New analysis from Frost & Sullivan, Asia Pacific Videoconferencing Infrastructure Market, finds that the market - covering six sub-regions (13 countries) in Asia-Pacific - earned revenues of US$80.9 million in 2007 and estimates this to reach US$245.3 million by end-2014, at a CAGR (compound annual growth rate) of 17.2 per cent (2007-2014).

The videoconferencing infrastructure market includes all videoconferencing bridges or MCU (multipoint control units), gateways, gatekeepers, firewalls, NAT (network address translation), and management and scheduling tools and software.

The geographic expansion of organisations, especially in emerging countries, has been one of the biggest drivers of the videoconferencing infrastructure market.

Greater China accounted for 63.3 per cent of the total Asia-Pacific market in 2007 with revenues growing at a blistering 39.6 per cent year-on-year. India was another high growth market as revenues rose 28.8 per cent. In both these countries, the government and corporate sectors make up the bulk of domestic demand.

India accounted for 6.4 per cent of the total revenues, Japan - 16.8 per cent, Australasia - 7.7 per cent, South Korea and ASEAN - each at 2.9 per cent.

“Gradually changing work cultures that favour videoconferencing, improved network connectivity and bandwidth availability in most parts of Asia, a focus on improving productivity, and travel cost reduction are the other major factors for the surge in demand,” notes Frost & Sullivan industry analyst Pranabesh Nath.

“This growing demand however needs to be sustained with continuously improving videoconferencing solutions and innovative features and functionality at economical prices, in order to counter competition from lower-cost audio and web conferencing alternatives,“ says Nath, adding that the Asia-Pacific market is more constrained by price sensitivity than North America and Europe.

The Asia Pacific Videoconferencing Infrastructure Market study is part of the Conferencing & Collaboration Growth Partnership Service programme, which also includes research in the following markets: telepresence, videoconferencing endpoints, and audio, video and web conferencing services.

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