Dear destinationindia,
Thanks for your question. First, let me request that if any of the
following is unclear or if you require any further research – please
don’t hesitate to ask me for a clarification.
You requested data on the US and world corporate videoconferencing
market.
Washington Technology published a report on June 18, 2001, based on
data collected and analyzed by Wainhouse Research, detailing the size
of the global videoconferencing market for the year 2000. According
to this report, in terms of endpoint equipment, the size of the global
videoconferencing market in 2000 was $802,000,000. Network
infrastructure accounted for $376 million in sales, while non-network
services totaled $285 million. Total global market size was therefore
$1,463 million.
According to the Multimedia Telecommunications Association’
“Multimedia Telecommunications Market Review & Forecast” the size of
the US videoconferencing market in 2000 was $7,750 million, up from
$6,750 in 1999. For 2000, $1,550 million was for equipment while
$6,200 million was for services. This same report forecasts that the
market in the US will almost double in size by 2004 to $15.25 billion,
21.6% of which will come from equipment sales with the residual coming
from services sales.
A report in eMedia predicts that video-centric conferencing products
will grow at a 21.9% annual rate over the next several years. This
report, titled “Light waves: the IP tsunami put the video back in
videoconferencing,” provides a wealth of information about the various
sub-segments of this market (see citation below).
While I could not locate a quote for a global industry forecast
number, we can calculate one ourselves based on the data provided
above – beginning with approximately $1.5 billion in 2000 and growing
at 21.9% a year, the projected global market size in 2005 is
approximately $4 billion. This is an equipment only projection.
Other Data That May be of Interest
******************************
Wainhouse Research seems to publish many reports in this market
segment. An executive summary of their July 2002 report, “Rich Media
Conferencing 2002, Multimedia Networking Infrastructure Products,” is
available online at -
http://www.wainhouse.com/reports/WR_RMC_V1_summary.pdf
According to this report, “the conferencing infrastructure industry
will grow from just over
$500 million in 2001 to over $1.375 billion in 2006, producing a
compound annual growth rate of
near 22%.”
The summary provides a graph of total infrastructure revenue forecast
through 2006, as well as a graphical breakdown by segment – audio,
video etc. According to the graph, video infrastructure accounts for
between 2% and 3% of the market in 2001, and does not increase
significantly through 2006.
The first chapter of “Mainstream Videoconferencing: A Developer's
Guide to Distance Multimedia” is online at –
http://technologists.com/jwdchs/duran-sauer-chap1.html
It provides a good overview of the technical challenges inherent in
this market, and some rationale for the slow growth Wainhouse’s
research predicts. Also, many good industry links at –
http://technologists.com/jwdchs/appendix.html
The following report, from Wainhouse Research, entitled “The Business
Case for Videoconferencing – Understanding the Benefits, Costs and
Risks of Videoconferencing over ISDN and IP,” provides a multitude of
scenarios and an in-depth analysis of cost savings for corporate
videoconferencing implementations – no forecasts, but extremely useful
data –
http://www.wainhouse.com/files/papers/WR-bizcase4vc.pdf
I hope this response adequately addresses your request. Please let me
know if you are in need of additional information concerning this
query.
Thanks,
ragingacademic-ga
References:
Global videoconferencing market size expressed as sales of endpoint
equipment, network infrastructure and non-network services in US
dollars for 2000
Washington Technology, 16 (6): 22, June 18, 2001. ISSN: 1058-9163
Multimedia Telecommunications Association - Market Review & Forecast:
The Videoconferencing Market
February 13, 2001
Light waves: the IP tsunami put the video back in videoconferencing
EMedia, 14 (11): 44(9), November 2001. ISSN: 1525-4658
Search Strategy:
"videoconferencing market" sales forecast
videoconferencing systems market forecast |
Clarification of Answer by
ragingacademic-ga
on
06 Jan 2003 08:36 PST
destinationindia -
Thanks for your clarification request.
The data I had provided came from several sources, however, Wainhouse
seems to be the preeminent authority on the videoconferencing market.
For example, an additional search on Google using the following
strategy -
"global videoconferencing market"
- yielded only 3 hits, only one of which had market data, and guess
who this one source quoted? Wainhouse...
"In the first half of 2001, there were 13 million video and audio
conference calls placed through North America services, an increase of
43% over the first half of 2000, according to TeleSpan Publishing
Corp. of Altadena. Meanwhile, Wainhouse Research of Brookline, Mass.,
forecasts that equipment sales will rise from $375 million in 2000 to
$1.25 billion by 2005."
http://www.polycom.com/company_info/0,1392,pw-451,00.html
A search for "US videoconferencing market" yielded several additional
hits.
More Frost & Sullivan data -
"The research group anticipates that the US videoconferencing market
will reach revenues of US$4.05 billion by 2008 up from the US$1.52
billion generated in 2001. "
http://www.itp.net/news/103641036239449.htm
And yet another Frost & Sullivan forecast from Roopam Jain -
"Jain projects revenues for the U.S. videoconferencing market will
grow from $1.99 billion in 2000 to $7.8 billion in 2006. "
http://www.vspan.com/html/about/news_events/industry_release/09_24_01.html
Not sure when the following report was issued, but it contains some
wild numbers (also Frost & Sullivan) -
"Statistics taken from Frost & Sullivan show that Total U.S.
VideoConferencing
Market Services Revenues in BILLIONS for (1993-2003) as follows:
1993 1.09 1997 5.73 2001 21.38
1994 1.62 1998 8.48 2002 26.64
1995 2.43 1999 12.34 2003 34.27
1996 3.77 2000 16.54"
http://www.adusa.com/summary.txt
And here is one estimate from a different data provider:
"For example, MMTA Data Communications estimates current US spending
on audio conferencing to be around $2,900 million with a growth rate
of over 20%. The current US videoconferencing market weighs in at
$5,360 million withal growth rate of around 30% a year."
www.arnoldassociates.co.uk/pdf/marketing%20week.pdf
Finally, one more source - data extracted from InfoWorld and Economist
articles -
"initial message. This makes it easy to follow the
Revenues for the US videoconferencing market are projected to grow
from US $780 million in 2000 to US $1.16 billion in 2005."
http://www.knowledge-nurture.com/web/bulabdoc.nsf/9c76cdc549966e86862565dd00702576/dc9d732efe24556b86256b02006c7427/$FILE/Collab%20Techs.pdf
This additional information should provide you with a broader
perspective on this market.
Additional data is available for a fee from various research
providers. For example, Mindbranch provides a comprehensive reports
that can also be purchased piece by piece at -
http://www.mindbranch.com/page/catalog/product/2e6a73703f636f64653d52322d353735.html
And Global Information's report can be purchased from -
http://www.gii.co.jp/english/ir2392_video_multimedia_toc.html
I hope this clarification has been valuable.
Let me know if you have additional questions that relate to this
query.
thanks!
ragingacademic
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