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Videoconferencing Apps will Grow Rapidly in Latin America

There's little doubt about the continued adoption of videoconferencing and telepresence applications over the past few years. Clearly, growth has been fueled by the increasing popularity of video communications among multinational companies around the world -- particularly with mobile video chat applications that utilize new handheld devices.

According to IDC's latest market assessment, the videoconferencing and telepresence market will continue to be one of the fastest growing networking markets for the foreseeable future.

"Growth has been spurred on by more well-defined video use cases among organizations across a range of vertical market segments, including healthcare, higher education, financial services, legal, law enforcement, manufacturing, and retail," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC.

Other industry analysts are equally enthusiastic about the market outlook, as more enterprise users find new ways to connect and collaborate with internal and external stakeholders via traditional video meeting rooms and other more flexible video endpoints.

Enterprise Video Communications Market Results

Infonetics Research released excerpts from its fourth quarter (4Q11) "Enterprise Telepresence and Video Conferencing Equipment" report, which analyzes markets and vendors by region.

"Sales of telepresence and videoconferencing equipment surged in the past two years, with growth accelerating in 2011 as video took off on enterprise IP PBX systems" said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

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, and industry use cases -- such as tele-learning and tele-medicine.

Most importantly, the video collaboration market is being driven by increasing demand across a growing number of industry verticals that use the technology today.


The Infonetics market study highlights include:
  • The global enterprise video conferencing and telepresence market jumped 15 percent to $882 million between the third and fourth quarters of 2011, setting a record high for quarterly revenue.
  • For the full year 2011, sales of videoconferencing and telepresence equipment are up 34 percent to $2.99 billion.
  • Infonetics expects a cumulative $22 billion to be spent by enterprises on videoconferencing and telepresence hardware and software from 2012 to 2016.
  • PBX-based systems had the strongest performance for the year, growing 80 percent, as they offer a cost-effective way to enjoy multi-modal communication using existing infrastructure.
  • Market leader Cisco shows no signs of slowing down: its 4Q11 telepresence and videoconferencing revenue jumped 25 percent sequentially and market share is up 3 points to 52.5 percent.
  • Dedicated multi-purpose room video systems made up over half the enterprise videoconferencing equipment market in 2011 and will continue to be the biggest revenue-generator among enterprise video solutions.
  • Sales of videoconferencing infrastructure and endpoints are strong in all major world regions, but the standout region is the Caribbean and Latin America (CALA), which saw sales nearly double in 2011.

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