$22 Billion to be spent on video conferencing within five years

Thursday, March 15 2012

Earlier this week, video and web conferencing market research firm Infonetics Research, released its Enterprise Telepresence and Video Conferencing Equipment report for the fourth quarter of the 2011 business year. In the report, Infonetics analyzed markets and vendors by  local and global regions for dedicated and private branch exchange based video conferencing and telepresence infrastructure such as videophones and software. The research also provided the entire scope and market size of conferencing technology, vendor market share, statistical data analysis, and forecasts for dedicated and private branch exchange web and video conferencing equipment.

The report released by Infonetics stated that the global enterprise web and video based conferencing and telepresence market jumped 15 percent to nearly $882 million between the third and fourth quarters of 2011 alone, setting a record high for quarterly revenue. Overall, for the full business year 2011, sales of video conferencing and telepresence equipment are up 34 percent to $2.99 billion.

"The video conferencing market is being fueled by a confluence of factors, including the proliferation of video-capable equipment, demographic and communication trends that favor video, industry use cases like telelearning and telemedicine, and most importantly, customer demand," said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

The demand for video and web based conferencing is showing no signs of slowing down. Study experts expect $22 billion to be spent by enterprises on video conferencing and telepresence technology between 2012 to 2016.

Private branch exchange-based systems had the strongest performance for the year, growing nearly 80 percent. A private branch exchange system (PBX) is a privately owned system within a company that is used for handling multiple telephone lines without having to pay the phone company to separately lease each line. It is an appealing method for using video and web conferencing as they offer a cost-effective way to implement the technology by utilizing existing infrastructure.

The report also indicated that dedicated multi-purpose room video systems accounted for over half of the video conferencing market in 2011, and it is forecasted to continue to earn the most profit among all other types of video solutions.

As video conferencing demand continues to grow, it is important to know that it still remains a cost-effective solution for any company to implement into its business model.