New analysis from global growth consulting company, Frost & Sullivan (www.conferencing.frost.com), The Asia Pacific Telepresence Market 2006, reveals that revenues in this market totalled US$9.5 million (AU$11.2 million) in 2006 and is forecasted to be worth US$250.8 million (AU$294.7 million) by end-2013, growing at a CAGR of 59.6 per cent (2007-2013).
Australia emerged as the single largest market, accounting for 41 per cent of total product sales in 2006. Early traction was also observed in Hong Kong, Japan and Singapore.
Telepresence has created a new paradigm in visual communications not only in Asia Pacific, but around the globe. The solution delivers full-size images combined with advanced technology elements such as high quality audio and video in an engineered environment.
According to industry analyst at Frost & Sullivan, Ms Har Yen Yen, “telepresence solutions have caught the attention of various parties; among those who have showed keen interest are multinational companies, service providers, building managements and large corporations.”
Competition is intensifying as an increasing number of notable vendors such as Cisco, Polycom and Tandberg are entering this market. With a more vibrant competitive landscape, telepresence is fast spreading across the Asia Pacific region.
Adds Ms Har, “As the market continues to mature, the pace of telepresence adoption will intensify.”
Despite the flourishing outlook across the region, the telepresence market will continue to face several roadblocks. Among them are the high price points of the systems, extensive bandwidth usage, low bandwidth availability coupled with high cost of bandwidth and lack of interoperability with existing videoconferencing systems and other business applications.
Adds Ms Har, “The biggest challenge is the high cost of ownership, resulting in longer sales cycle due to the time needed to educate the market and convince customers of the ROI.”
“Telepresence might end up remaining in the niche market, addressing the demand from large enterprises and multinational companies.”