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Mid-year 2017 Market Update
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Video conferencing adoption is on the rise driven by cloud services, focus on simplification, and lower-prices. As video conferencing becomes an integral part of organizations' digital transformation strategy, the user demand continues to expand. Currently standing at less than 5 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. Meetings are becoming more frequent, less structured, and less formal. As a result, rich audio, video and content collaboration is moving beyond the four walls of a conference room. Increasing number of huddle rooms and open spaces will be video enabled for ad hoc collaboration. It is estimated that globally there are 30 million huddle rooms and less than 5% of those are video enabled. 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 market is seeing significant technology evolution. The promise of Artificial Intelligence (AI) presents unprecedented opportunities and will be a game changer for collaboration in the future (smarter devices, predictive customized user experiences, voice-activated AI, and rich analytics). Deeper integration into business workflows is delivering significant improvements in growth, efficiency, and effectiveness of video-enabled processes. Vendors are focusing on building open and extensible platforms and a wide network of developer partners.This report provides a mid-year update on market sizing, forecasts, prices and market shares. It covers the market for video conferencing endpoints and infrastructure systems and excludes conference Room USB video devices; soft clients including UC clients, web conferencing, and cloud video conferencing services.* Unit growth remained healthy and shipments grew by 7.1 percent in H1 2017. Rapid evolution in form factors including the spread of huddle room solutions lead to a steep average selling price decline putting pressure on revenue. This combined with the impact of software-based room video conferencing, migration to cloud, rapid adoption of USB conference cams has lead to a total market revenue decline of 3.9 percent in H1 2017. For an end-to-end view of video conferencing across varied platforms and services, please refer to Frost & Sullivan's report "Growth Opportunities in the Video Conferencing Market: A Holistic Evaluation of Technology Adoption and Growth Trends", June 2016.Through extensive primary and secondary research, this analysis provides enterprise communications and collaboration providers and with an in-depth perspective on the dynamics of a changing market. Frost & Sullivan expects that this analysis will provide industry participants with valuable insights to accelerate growth and expand their opportunities within the global conferencing and collaboration services.
Growth Opportunities for Video Conferencing in Huddle Rooms, Global, Forecast to 2022
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