The Asia Pacific telepresence market is set to reach US$93 million in 2017, according to new analysis from Frost & Sullivan-Asia Pacific Telepresence Markets CY2010.
The market earned revenues of US$41.9 million in 2011 and is predicted a bright future as telepresence's highly immersive experience will attract several enterprises in the region looking forward.
Video is now a huge part of the mainstream enterprise communications sector but high definition (HD) video does not provide an immersive environment to the end-users.
As a result of this, telepresence companies are in high demand and are sought by companies that want managed services and telepresence solutions that are interoperable with different devices.
"The interoperability with room-based video conferencing systems, executive video conferencing (VC) solutions, and desktop video solutions will trigger demand among Asian enterprises," said Frost & Sullivan senior industry analyst Jessie Yu. "Various telepresence solutions, from one screen to three screen systems, can meet the diversified demand from customers, within the available budget and bandwidth."
Increase in demand of telepresence solutions will encourage both global and local vendors to step into this lucrative market, and this will eventually lead to price wars.
Although it will also lead to technology innovation, end-users may not quickly adopt this solution due to factors such as the product's high upfront capital investment and operational costs, IT manpower requirement, and bandwidth consumption.
Market growth can also be slow due to saturation of Australia, Japan, and Hong Kong markets.
Frost & Sullivan advises the market majors to have a more dynamic and innovative product portfolio to survive in a competitive environment. Leading players should focus on offering products that result in cost savings and an immersive experience.
"Channel partnerships to reinforce system integration capability and customisation specialty in emerging countries will be vital for success," added Yu. "Market participants need to streamline the channel partner programme with local system integrators and service providers, while maintaining the momentum of technology innovation for interoperability."
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