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Multiple benefits drive videoconferencing’s continuously expanding applications

LONDON – 19 May 2011 – Due to less travel and, in consequence, reduced number of regular in-person meetings, companies look for tools that enable to build and consolidate business relations while saving time and money. Videoconferencing comes here as a key solution. In the next few years, this market revenue growth will be mainly driven by an increased adoption of videoconferencing as part of unified communication solutions as well as the penetration of video in SMBs.

New analysis from Frost & Sullivan ( European Videoconferencing Endpoints Market, finds that the market reached $518.3 million in 2010, growing at a rate of 20.3 per cent from the previous year.

“The need for companies to reduce their travel cost while maintaining communication with their workers and clients will drive the European videoconferencing endpoints market,” notes Frost & Sullivan Research Analyst Iwona Petruczynik. “Increasingly stringent environment policies imposed by the European Parliament will also promote market development.”

Enterprises can avoid common travelling and accommodation expenses, as well as lost productivity time. Moreover, videoconferencing can accelerate the decision-making process and enhance teamwork among an ever-more dispersed workforce.

“Educators can use videoconferencing as a convenient method for interactive access to classes, meetings and distance learning while physicians can leverage it to provide consultations and patient diagnostics,” adds Petruczynik. “Courts can deploy it to increase prison security and conduct video arrangements, while government offices can employ it to track daily strategic missions.”

However, the difficulty of attaching a hard-dollar ROI to the benefits of visual communications continues to prevent large-scale investments. In addition, the adoption of videoconferencing is largely dependent on the human element. The effort needed in changing established work behaviours and substituting live interaction with video communications remains a major restraint for adoption.

“The misconception that videoconferencing services are communication tools aimed at large enterprises is hindering its adoption among small and medium businesses (SMBs),” remarks Petruczynik. “Moreover, weak infrastructure and low bandwidth, especially in Central and Eastern Europe, are having an adverse effect on the videoconferencing endpoints market.”

The pace of adoption in Europe will remain strong over the next few years, as the new generation of videoconferencing systems offer enhanced value proposition and demand levels continue to remain high. The videoconferencing market revenue growth will be generated thanks to increased adoption of videoconferencing as part of unified communications solutions, as well as the rising penetration of video in SMBs.

“Vendors are steadily resolving security, firewall traversal, and Quality of Service issues associated with video communications between multiple sites, thereby easing inter-company communications,” concludes Petruczynik. “In addition, efforts by vendors and customers in verticals like government and healthcare (telemedicine) to harness the power of videoconferencing are leading to a wider application base. Both these factors will expand the potential target market for videoconferencing systems and lead to increased adoption.”

If you are interested in more information on this study, please send an e-mail with your contact details to Joanna Lewandowska, Corporate Communications, at

European Videoconferencing Endpoints Market is part of the Conferencing and Collaboration Growth Partnership Services programme, which also includes research in the following markets: visual collaboration, enterprise communications and communication services. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit

European Videoconferencing Endpoints Market

Joanna Lewandowska
Corporate Communications – Europe
P: +48 22 390 41 46

Publisher Contact Information:

Frost & Sullivan
+48 22 390 41 46

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