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Workflow Integration Expands Features and Functions of Video Codec
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The enterprise video conferencing market is seeing increasing demand driven by a focus on simplification and lower-prices. End users were having higher expectation on meeting experience, which is also driving the innovation of video collaboration products. As video conferencing becomes an integral part of the digital transformation strategy, the user demand continues to expand. In 2017, unit shipments grew by 18.6 percent, revenue for video conferencing endpoints grew by 5.8 percent. Currently standing at less than 10 percent penetration rate, growth in the future will be driven by a stronger adoption of video in multiple meeting environments - conference rooms, huddle rooms, open spaces, desktops, and mobile devices.The average selling price (ASP) per codec had a prospective decline despite improvements in the features and function of endpoints. Price erosion by competition, promotional offers for UC bundled solutions, and emerging lower-priced huddle room systems are expected to further drive down the average selling price. Despite rapid user adoption, revenue growth will be under pressure due to precipitously declining prices. As the price for HD codec is expected to decrease by 2–5% per annum during the forecast period, with the emergence of huddle room systems, market opportunities from SMBs and mid-sized companies are anticipated to increase gradually in terms of new customer acquisitions.The rise of new entrants, at both global and local levels, intensifies the competition and drives innovations on customer experiences, as well as integrations with workflow and business processes. Newer and agile clients and platforms are giving providers the flexibility to drive the direction of next-gen video conferencing, which is resulting in new business models.The key questions this study will answer include below:- Which stage of growth is being currently witnessed in the market? How was each market segment growing in 2017?- Are the solutions currently offered meeting customer needs or is additional development required?- How competitive is the market? What are the key steps that vendors must take to retain their competitive edge?- How will the pricing for different solutions change over time?- How is the market anticipated to grow during the forecast period?- Are the vendors in the space ready to do it alone, or do they need partnerships to take their business to the next level?The study covers the competitive structure and provides market share analysis. Market trends indicate rising customer awareness, which will bring reliability and quality within the overall framework of technology upgrades. The forecast period is from 2018 to 2024, and the base year is 2017.
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