Videoconferencing has proved to be a viable solution for companies that are reducing their travel expenditure, thereby boosting the European videoconferencing endpoints market growth, says Frost & Sullivan.
New analysis from the research group, European Videoconferencing Endpoints Market, finds that the market earned revenues of $383.6 million in 2009 and estimates this to reach $1.03 billion in 2015 at a compound annual growth rate of 18.0 per cent.
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 the stringent environment policies imposed by the European Parliament.
Additionally, videoconferencing is stepping up the decision-making process and enhancing teamwork in the more-than-ever dispersed workforce.
"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," states Iwona Petruczynik, Frost & Sullivan Research Analyst.
However, the report says, the European videoconferencing endpoints market is restrained by several factors. For example, the misconception that videoconferencing services are communications tools used only by large enterprises is hindering the adoption among small and medium businesses.
Moreover, new communications and collaboration vendors are delivering videoconferencing as a part of a unified solution, creating a one-stop-shop for their customers; however, this is hampering the growth of standalone videoconferencing providers. Poor infrastructure and low bandwidth, especially in the Central and Eastern Europe (CEE), also have adverse effects on the videoconferencing endpoints market growth.
"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," said Petruczynik.
Analyst claims that overcoming the first barrier is a constant challenge for vendors. However, with the recession spurring the growth of videoconferencing, these collaboration tools and their benefits have been brought to the fore, especially their increasing ease of use.
“Videoconferencing vendors should be able to proactively address their clients’ needs and evolve constantly in this market. The trend of shifting towards UC is leading to an increased attention to the adoption and usage of visual collaboration in business,” concluded Petruczynik.
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