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Brazil and Mexico Are Likely to Become the Key Markets for Videoconferencing in Latin America Finds Frost & Sullivan - Videoconferencing vendors strive to balance the need for commoditization against the inevitable rise of lower-cost competition and price erosion
Brazil and Mexico Are Likely to Become the Key Markets for Videoconferencing in Latin America Finds Frost & Sullivan

 

NewswireToday - /newswire/ - São Paulo, Brazil, 2011/03/22 - Videoconferencing vendors strive to balance the need for commoditization against the inevitable rise of lower-cost competition and price erosion.

   
 
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In the last few years, videoconferencing has been adopted increasingly due to globalization, productivity benefits, mobility and the need to save travel costs. During 2010, the videoconferencing market in Latin America generated revenues of US$78.0 million. With a compound annual growth rate (CAGR) from 2010 to 2017 of 20.9%, this number is likely to achieve US$294 million.

The acquisitions made during 2009 were consolidated during 2010, with more complete and competitive offers. The presence of a limited number of participants has intensified this competition, the top three players together held more than 85% of the total market in 2010. Despite industry concentration, the prices are expected to decline during the medium term, as the technologies for videoconferencing will become more accessible.

The videoconferencing market counts with three main segments: endpoints, telepresence and infrastructure. In the current scenario, Endpoints represents around 65% of total revenues. However, telepresence has been registering the maximum growth in the Latin American videoconferencing market, with an estimated CAGR of 27.1% from 2010 to 2017. On the other hand, conference rooms and executive desktop systems are likely to grow in demand among SMBs, which constitute an under penetrated market.

Although the spectrum of videoconferencing services is expanding in Latin America, vendors face many challenges with all the changes in product lines and with the increasing number of offers. "It is extremely important for vendors to understand which solutions should be positioned for each segment in Latin America. Moreover, they must learn how to adapt the solutions and the type of offer provided to customers based on their needs, such as integration with other applications and legacy equipment and the ability to expand the solution as a modular option. They need to raise awareness of the benefits of video solutions", analyses Rodrigo Lima, Frost & Sullivan Research Analyst.

If you are interested in more information on this study, please send an email to Tatiana Brull, at tatiana.brull[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents.

Latin America Videoconferencing Market 2010 / N90E - 64

 
 
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Brazil and Mexico Are Likely to Become the Key Markets for Videoconferencing in Latin America Finds Frost & Sullivan

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