Asia-Pacific videoconferencing market growing strongly

Asia-Pacific videoconferencing market growing strongly

Research firm Frost and Sullivan has found that the Asia-Pacific videoconferencing endpoints market has recovered well from a poor performance in 2005, showing strong growth over the last two years.

According to the company's study, The Asia Pacific Videoconferencing Endpoints Market CY2007, revenues grew 20.3 per cent and 17.6 per cent in 2006 and 2007 respectively, driven by stronger capital expenditure in IT against a backdrop of sturdy economic growth and FDIs (foreign direct investments) in the region.

The study covered the endpoints, client side conferencing equipment sales, across six sub-regions -- 14 countries -- in Asia-Pacific and showed the market earned revenues of US$297 million (MYR942 million) in 2007. This is expected to grow to US$647.7 million by end-2014, at a CAGR (compound annual growth rate) of 11.8 per cent from 2007 to 2014, said Frost and Sullivan's Malaysia-based analyst, Har Yen Yen (picture).

She said that Greater China was the single largest market accounting for 56 per cent (or US$166 million) of the revenues in 2007, followed by Japan (19 percent), Australasia (10.4 per cent) and India (7.7 per cent).

Malaysian market also on the rise

Har said that the Malaysian videoconferencing endpoints market earned US$2.94 million in 2007 and shows a year-on-year growth of 40.7 per cent. Project revenues for 2008 are US$3.81 million and US$7.95 million for 2014, showing a CAGR of 15.3 per cent for 2007-2014.

Drivers behind this upbeat trend include the increasing need for real-time collaboration, enhanced high definition video and audio solutions, the buzz around telepresence and the growing focus on unified communications (UC) as business productivity tools among enterprises, according to Har.

In addition, the study concluded that environmental issues and the mounting pressure on enterprises to fulfill their corporate social responsibility toward a greener environment, as well as cost-cutting factors, are further prompting wider adoption of videoconferencing. Responding companies indicated that they are seeking ways to measure carbon footprint and the impact of applying conferencing and collaboration tools to address environmental issues in real terms.

"Awareness of videoconferencing solutions has grown by leaps and bounds as more organizations begin to embrace conferencing and collaboration tools as a means to enhance productivity," said Har. "The introduction of the much publicized top-end telepresence solutions has also had a trickle down effect on customer interest and adoption of videoconferencing systems as a more cost effective alternative."

The Asia Pacific Videoconferencing Endpoints Market CY2007 study is part of Frost and Sullivan's the Conferencing & Collaboration Growth Partnership Service program.

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