Analyst: Local videoconferencing market shows 33 per cent revenue growth in 2010

Report claims market revenues will more than triple by 2017

Government incentives and demands following the global financial crisis (GFC) have boosted the Australian videoconferencing market, increasing revenues by 33 per cent in 2010, according to analysts Frost & Sullivan.

In its Australian videoconferencing market report 2011, it predicted the market will more than triple by 2017 – rising at an approximate combined annual growth rate of 19.1 per cent.

The market includes sales of equipment for immersive telepresence, videoconferencing endpoints and videoconferencing infrastructure but excludes maintenance and communications.

Government, banking and financial services, utilities and mining industries were the major vertical markets undertaking video conferencing deployments in 2010.

Other areas of high demand included education, health care and professional services.

The report also showed mid-range solutions, room-based systems (videoconferencing endpoints), was the strongest sector of the market – accounting for 66.7 per cent of all video conferencing revenues in 2010.

The company said this was the result of its better quality, steadily declining price points and altered customer preferences from immersive telepresence to room-based systems.

There was a sharp increase in videoconferencing infrastructure growth as many organisations revived delayed videoconferencing deployment plans in 2010, generating the need for infrastructure to effectively link several parties in a conference.

The immersive telepresence solutions confirmed a growth of three per cent, re-addressing the demand drop faced during the GFC. The report suggests that this segment will continue serving its niche market but, will not face extensive uptake.

Frost & Sullivan said the top players were: Cisco, Polycom, LifeSize, Telstra, Dimension Data and Optus-Alphawest.

Company research director – ICT, Audrey William, said, “2010 was a return to form for Australia's video conferencing market. Growing business confidence saw the resurrection of a number of previously postponed projects along with an increase in demand for new deployments.”

More about: AlphaWest, Cisco, Dimension Data, Frost & Sullivan, Optus, Polycom, Telstra
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Tags: Global Financial Crisis (GFC), immersive telepresence, cisco, polycom, videoconferencing, optus, lifesize, alphawest, Telstra, dimension data
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