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Communications & Networks |
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Strong And Steady Growth In China's
Video Conferencing Market April 15, 2008 Since 2003, China's video conferencing market (VC) has grown at a fast clip of 20% per year. Interestingly, what jump started the VC market was the SARS (severe acute respiratory syndrome) outbreak in 2003, as Chinese sought to minimize face to face contact. Going forward, CCID Consulting sees future growth of VC driven by government demand from China's Tier 3 and 4 cities. Other factors at play are summarized below: Top-down demand from financial services, energy, and telecom industries. These industries in China have the characteristic of being state-owned and oligarchic, and they have always been a steady driver for VC demand. Enterprises in these industries typically are large, have well developed, top-down organizational structures, and concentrated decision power. VC procurement is typically in large amounts with a strong requirement for security for networks within the firewall. Small and medium enterprise (SME) potential. There are approximately 11 million SMEs in China, SMEs are learning about how fast communications, with VC being key element, will not only enable increased efficiency and growth, but also very survival. However, SME resources are limited, so leasing will be the preferred model over upfront purchases. More integrated, multi-media functions. Chinese users will demand more features that integrate video, audio, illustration and data. Examples include integrated electronic white board, bi-video functionality, and software applications that can be used and shared over long distances. High definition just a start. High definition (HD) products have been introduced into the China markets in 2006 and 2007. However, high pricing, product maturity, and needed infrastructure support will inhibit large scale adoption, even in commercial enterprise applications. We do see more breakthroughs in the next three years with vendors actively promoting HD. Example vendors we see are Polycom, Tandberg and Shanghai Avcon. For more information Please contact us for these and other China-related data, information and products. Unless otherwise specified, all information provided is sourced from CCID Consulting. |
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