Enterprise videoconferencing infrastructure and endpoint hardware revenues are forecast to be relatively flat through to 2020 (2.1% CAGR), according to ABI Research. Software solutions are becoming a more popular choice, with the ability to extend existing infrastructure and endpoints, and lessen the need for installing new permanent hardware. “With the current market focus on cloud computing and hardware virtualisation, dedicated hardware sales will see little growth in all video delivery markets, including videoconferencing and telepresence hardware,” says Eric Abbruzzese, Research Analyst.
Consumer videoconferencing, such as Skype and ooVoo, continue to enjoy strong growth while the enterprise hardware category is dormant.
Hardware-focused companies like Cisco, Polycom and Avaya, will have difficultly seeing success in both infrastructure and endpoint sales if their products do not adapt to the virtualisation-focused markets. They have already begun the transition, each with their own cloud videoconferencing platform aimed at leveraging their existing products as the foundation for the new service. The Asia-Pacific region—more specifically China—is forecast for stronger growth through 2020 (5.3% for infrastructure and 4.3% for endpoints), likely due to non-China based companies continuing to conduct business in China and require strong videoconferencing platforms.
Consumer videoconferencing is continuing to see strong growth, with products like Skype, ooVoo, and Google Hangouts expanding their user base. Small businesses, not interested in investing in large, permanent hardware solutions for videoconferencing, have the potential to instead choose these consumer-focused solutions, as they offer similar (albeit reduced) features to enterprise solutions for a reasonable price. With virtualisation, newer companies, such as Blue Jeans and Vidyo, are able to offer fully featured, enterprise-focused services without the need for dedicated infrastructure and endpoints, and offer these services for less money than those not utilizing cloud computing.
A recent report on Enterprise and Consumer Videoconferencing, Telepresence, and Video Chat includes data on the hardware and software involved with enterprise-level and consumer-level videoconferencing, and how these markets are changing. These findings are part of ABI Research’s Cloud Content and Services Market Research.