Video conferencing boom as hardware shipments accelerate to 3.6m in 2022

posted on Friday, 18th October 2019 by Steve May

Pro AV  Video Conferencing 

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The Pro AV sector has received a fillip with with a projected boom in video conferencing hardware predicted by Futuresource Consulting.

Remote working, developments in technology and shorter project lifecycles are driving uptake. According to a new industry report from the market analyst, hardware shipments increased by 50 per cent last year, reaching 1.4 million units, with a projected CAGR of 27 per cent out to 2022.

Video conferencing hardware shipments are predicted to reach 3.6 million units in 2022. Cloud video conferencing solutions have been the single most important enabler of growth. This is encouraging news for integrators working in the field.

“The market is in a significant phase,” comments Chris Mcintyre-Brown, Associate Director at Futuresource Consulting. “Revenues reached $3.8 billion last year, and the total number of meeting rooms equipped with video conferencing technology now exceeds four million worldwide. However, this still only represents around 10 per cent of the available market.”

The video conference market is also undergoing a shift from expensive hard codec solutions to more accessible software-based solutions. Company budgets that were previously allocated to video conferencing technology for one or two larger meeting rooms are now spread across multiple smaller rooms.

The shift is forcing high end vendors to adjust their business strategies to remain competitive. This includes building in new premium features, releasing lower cost versions of their systems with less functionality, and exploring cloud-based solutions.

Cisco recently acquired Voicea, a provider of real-time transcription, voice search and meeting highlight software.

“What was once seen as a solution for the boardroom is now being harnessed by employees at all levels, pervading meeting rooms and having a huge impact on the demand for video communications,” says Mcintyre-Brown. “At the same time, companies are recognising the benefits of collaboration and communication in small groups for rapid problem solving, creating the need for smaller, more immediate and informal meetings. As a consequence, larger meeting rooms are being forfeited to make way for smaller meeting rooms and huddle spaces. This is further accelerating the uptake of video communication solutions.”

 The Futuresource report includes results from interviews carried out with over 1,100 end users across the USA, UK, Germany and France.

“Our research shows that almost two-thirds of interviewees spending up to three hours per week in meeting rooms are using conferencing technology to include a remote participant,” reveals Mcintyre-Brown. “What’s more, nearly three in four companies are actively encouraging employees to increase their use of conferencing technology to communicate with colleagues, customers and third parties. Yet, there are still a number of issues that continue to surface. On average, one in three conference calls suffers from some sort of mishap. This could be problems encountered when people try to join the conference session, audio or video quality, or background noise from another user. We also found that one in four conference sessions begin with some sort of delay. If left unchecked, such challenges may slow down user adoption moving forwards.”

 

 

Steve May

Inside CI Editor Steve May is a freelance technology journalist, who also writes for T3, TechRadar, Home Cinema Choice and ERT (amongst others).

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