BEIJING, Aug. 1 /Xinhua-PRNewswire/ -- CCID Consulting, China’s leading research, consulting and IT outsourcing service provider, and the first Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange: 8235.HK), recently released analyzed China’s video conference market.
Affected by SARS, demand for video conferencing in China spiked in 2003, with a growth rate of 42.61%. The demand slowed down in after 2004 with the market entering a stale development stage, as the product reached a stage of technical maturity, and a market affected by popularization of the Internet and rapid growth of the enterprise market. The market size of China’s video conference market in 2007 reached 2.982 billion Yuan, up 28.26% over 2006.
Governmental and industrial tier-4 and tier-5 low-end markets, software video conference market and HDTV video conference market are the three segment fields in 2007 China’s video conference market.
Demand Flourishes in Government and Tier-4 and Tier-5 Low-end Market
Government procurement, finance, energy, telecommunication, and other industry customers have been the main driving force for China’s video conference market. Video conference purchasing is characterized by large disposable procuring capital, high requirements for products’ security and stability. After many years of development, governmental and industrial backbone networks have basically completed.
However, in order to realize comprehensive management which aims at every employee, as for the government, it should further cover tier-4 and tier-5 cities; as for industry, it should cover every minimal production unit so as to realize the most perfect coverage and management. Governments’ and industrial tier-4 and tier-5 markets’ requirements to video conference products are simple, their demands are huge and they have high price sensitivity. Therefore, low-end video conference systems become the major choice.
Aiming at this market segment, China’s domestic brands such as KEDACOM, DVISION and AVCON increase R&D intensity, and launch solutions and series of products. Based on high performance price ratio of these products and China’s domestic manufacturers’ increasingly powerful brand strength, China’s brands is becoming a force in competition with foreign brands.
Popularity of Software Video Conference Systems
Currently, requirements for software video conference system come from SMEs market and desktop videoconference communications market. On one hand, immediate communication and improving efficiency are accepted by more and more enterprises, 11 million SMEs drive the development of video conference market. Different from government and industrial users, constraints in budgeting and professional technicians, as well we low conference frequency degree, SMEs did not invest large funds into purchasing video conference equipments. Based on Internet, making use of existing computer resources and small investment, software video conference systems are applied in more and more SMEs. SME software video conference systems are becoming an important supporting force of video conference market.
On the other hand, the demand for desktop multimedia communications grows rapidly and become an important construction orientation. Desktop visual system’s major requirements include text chart, file transmission, desktop sharing, document sharing, long distance collaborative operation, document collaborative modification, whiteboard and VoIP solutions, with video conferencing a minor demand factor. Traditional hardware video conference products solve meeting room’s administrative conference, training application, which cannot cater for desktop needs at the aspects of convenience and easy use, therefore, as for desktop visual communications market, software system becomes the best choice. With broadband IP’s further popularization and the popularization of dual core and DX10 display card in computer market, software video conference market will develop rapidly in future three to five years.
As for China’s software video conference market share, the market shares of AVCON, RADFORT, and V2 account for over 80% of the total market share, thereinto, AVCON has the largest market share, which is 36%.
HD Video Conference System Moves towards Application
HD video conference market appeared in 2005. The year of 2006 and 2007 are HD products market’s starting stage, the market demands have been activated, and the high-end clients such as finance, governments and electric power start to test and construct long-distance HD video conference system so as to satisfy the requirements of high-end conference, training and communications. Technical progress and price drop drive applications of HD video conference system.
As for technology, with the launch of H.264 video coding and decoding technology, image quality cabe be improved. Based on H.264 technology, AVCON launched 1080P products in Sep. 2007, the first system that could satisfy teleprensence. Based on 720P, HP and Cisco launch teleprensence.
With most manufacturers debut their 1080P products, the industry chain of 1080P products grows rapidly and the price of 1080P products decreases quickly. In 2008, the price of low-end 1080P terminal products is possible to decrease to the level of high-end high definition video terminal products. Another reason of 1080P products price cutting lies in TI and other chip providers’ low cost solutions. Hence, it is time for old video systems to upgrading and introduce the market to more high definition products, which is expected to continue to 2010.
Taking the initiative in business competition, 1080p video conference product of AVCON obtains a leading position in China’s high definition video conference market with a market share of 30% in 2007. Following brands are Polycom, Tandberg, and Lifesize.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the first Chinese consulting firm listed in the Growth Enterprise Market of the Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly affiliated with China Center for Information Industry Development (hereinafter known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with over 300 professional consultants after many years of development. The company’s business scope has covered over 200 large and medium-sized cities in China.
Based on major areas of competitiveness: industrial resources, information technology and data channels, CCID Consulting provides customers with public policy establishment, industry competitiveness upgrading, development strategy and planning, marketing strategy and research, HR management, IT programming and management. CCID Consulting’s customers range from industrial users in electronics, telecommunications, energy, finance, automobile, to government departments at all levels and diversified industrial parks. CCID Consulting commits itself to becoming the No. 1 advisor for enterprise management, the No. 1 consultancy for government decisions and the No. 1 brand for informatization consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
