Chinese Videoconferencing Infrastructure Systems Markets CY 2005

Research Overview

This Frost & Sullivan research service titled Chinese Videoconferencing Infrastructure Systems CY 2005 provides insights into Asia Pacific markets with in-depth focus on major market trends, opportunities, challenges, and competitive landscape. In this research service, Frost & Sullivan's expert analysts thoroughly examine the following markets/applications/technologies: gateways, bridges, and other applications including gatekeepers and management tools.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

• Gateways/ Bridges
• Others (gatekeepers and management tools)

Market Overview

Videoconferencing Infrastructure Systems Market Sustains Continuous Growth in Asia Pacific

The Asia Pacific videoconferencing infrastructure systems market is expected to witness substantial growth in the coming years due to the increasing momentum in IP migration and healthy progress toward convergence of audio, data, mobile, and video. Apart from traditional silos such as government, telecommunications, and banking, videoconferencing infrastructure systems are fast gaining prominence in other verticals led by education, healthcare, manufacturing, and IT.

Although the market experienced a slight decline in revenues in 2005, several distinctive development measures have been taken to improve this situation. "Stronger sales momentum for advanced management tools and video streaming applications, adoption of 3G H.324M solutions among service providers, and the growing appeal for software-based bridges as well as all-in-one solutions are trends that are likely to ensure sustainable growth in the future," states the analyst.

India Emerging as the New Powerhouse in the Region

India is rapidly advancing in the videoconferencing infrastructure segment. In 2005, it outperformed Australia, emerging as the third largest market after China and Japan. "The decrease in cost of bandwidth, favorable economy of the country, and increasing adoption in IP platform have helped enhance the growth of videoconferencing infrastructure systems," notes the analyst. The market is expected to become demand driven rather than being stimulated by suppliers forcing technology on users. This drive can be attributed to India’s improving infrastructure, its position as a central hub across global markets, and the decline in total cost of ownership.

Currently, low awareness of videoconferencing in small and medium enterprises (SMEs), high costs of ownership and extreme price sensitivity are limiting the uptake of this technology among Indian customers. "However, with the anticipated increase in adoption of IP networks in the Indian market, more companies are expected to migrate their videoconferencing solutions onto IP platforms as well as invest in gatekeepers and advanced management tools," remarks the analyst. Also, as vendors begin to provide their products at more compelling price points, the demand for videoconferencing is expected to rise significantly.