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August 15, 2007
ABI Research Predicts Mobile Video Telephony Market to Reach $17 Billion by 2012
By Susan J. Campbell, TMCnet Contributing Editor
The demand for video messaging and telephony offerings continues to increase and as a result, a growing number of mobile carrier worldwide are increasing their offerings for both, hoping to drive revenue and profit growth.
According to a new ABI Research (News - Alert) study, the market value for mobile video telephony services such as video mail, video calling, and video sharing services, is expected to grow from $1 billion in 2007 to over $17 billion by 2012, a compound annual growth rate (CAGR) of 74 percent.
The conditions that will drive or inhibit growth of these services by region have proven to be complex. According to principal analyst Dan Shey in a Wednesday statement, “The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services.”
“However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities. And then there is the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies,” Shey added.
In response to such complex conditions, ABI Research has created forecasts for uptake of mobile video messaging and telephony services for eight different regions of the world. The report highlights that the industrialized regions of North America, Western Europe and Asia Pacific will command 90 percent of the video services revenues.
While this research found that only 10 percent of service revenues will come from the developing regions of the world, the opportunity for video services serving customers from developed regions should not be discounted.
Shey noted, “The biggest opportunity for carriers in developing world countries is with video messaging services. The mobile phone is the most common device in these regions and 2.5G networks are sufficient for this service. With more people migrating and immigrating to find work, video messaging can be the service that provides a rich form of communication for social and familial connectivity.”
According to a new ABI Research (News - Alert) study, the market value for mobile video telephony services such as video mail, video calling, and video sharing services, is expected to grow from $1 billion in 2007 to over $17 billion by 2012, a compound annual growth rate (CAGR) of 74 percent.
The conditions that will drive or inhibit growth of these services by region have proven to be complex. According to principal analyst Dan Shey in a Wednesday statement, “The Web 2.0 phenomena and sites that allow posting of mobile video will increase demand for mobile video services.”
“However, global demand inhibitors include income levels, messaging and video viewing alternatives, and handset capabilities. And then there is the uncertainty factor for operators of video services on network utilization which will affect their promotion and pricing strategies,” Shey added.
In response to such complex conditions, ABI Research has created forecasts for uptake of mobile video messaging and telephony services for eight different regions of the world. The report highlights that the industrialized regions of North America, Western Europe and Asia Pacific will command 90 percent of the video services revenues.
While this research found that only 10 percent of service revenues will come from the developing regions of the world, the opportunity for video services serving customers from developed regions should not be discounted.
Shey noted, “The biggest opportunity for carriers in developing world countries is with video messaging services. The mobile phone is the most common device in these regions and 2.5G networks are sufficient for this service. With more people migrating and immigrating to find work, video messaging can be the service that provides a rich form of communication for social and familial connectivity.”
This study from ABI Research, Mobile Video Communication Services offers a comprehensive analysis of the global mobile video services market. The report mainly focuses on video messaging and telephony services, video broadcast service market forecasts are also included. The report examines in detail the network and device telecommunication enablers in addition to the regional differences for various demand drivers and inhibitors.
The study forms part of two ABI Research Services, Business Mobility and Mobile Content.
It is interesting the road that video messaging has taken over the years. The first attempt to launch such technology failed, only to find strong growth in demand today, given the technologies that are now available. This phenomena is also the result of changing trends in cultures as seen in this report. For those providers that can accommodate these changes and take a proactive approach to anticipate demand, the opportunity in this area is significant over the next few years and worth investment consideration.
Want to learn more about telephony? Then be sure to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP
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Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for eastbiz.com. To see more of her articles, please visit Susan J. Campbell’s columnist page.
