While the global economic downturn left few businesses, if any, with no choice but to cut capital expenditures and office space, companies sought other cost-savings options to keep their operations functioning.

 

As a result, the need for lower-cost bridging and IP services propelled audio conferencing to the desktop and is expected to play a role in the future growth of the industry, a new Frost & Sullivan (News - Alert) report found.

 

According to the research, “World Tabletop Audio Conferencing Endpoints Markets,” as the penetration of tabletop audio endpoints reach all-time highs in developed areas of the world, “higher growthis expected in developing economies that enter the marketplace, including high-growth regions of Asia/Pacific and Latin America.” What’s more, the growth of decentralized enterprises will further drive the need for tabletop units in central offices, it said.

 

Meanwhile, more mature markets such as North America and Western Europe will likely experience decelerating growth because the market is already saturated, Frost & Sullivan said.

 

When it comes to the conferencing industry, audio conferencing is still king. The technology helps companies transform the way they do business and connects people at a moment’s notice.

 

As the adoption of advanced unified communications technologies that bring conferencing to the desktop grows, the popularity of secondary markets, as well as the effect of developing regions looking for cost savings by slashing travel and implementing green policies “are likely to account for a growing portion of future tabletop audio conferencing unit shipments and revenue,” the report said.

 

Frost & Sullivan’s report offers a detailed look at the dynamics of a changing audio conferencing market. Specifically, the research examines the audio conferencing endpoints and unified communications markets and discusses tabletop audio conferencing, installed audio conferencing, narrowband versus wideband and TDM versus IP technologies.

 

It’s no surprise that the biggest impact on the tabletop endpoint market in 2008 was the global economic downturn. Many vendors reduced order volume in third second half of the year and analysts said that the trend slated to continue through 2009.  Meanwhile, the secondary market for used tabletop equipment has grown, thanks to increased inventory from auctions and online sales and the need for businesses to cut capital spending and find other alternatives.

 

Tabletop market vendors have an increased urgency to target their marketing and channel efforts on regions that have high growth potential over the long term. Specifically, vendors are focusing on Brazil, Russia, India, China or the Asia Pacific and or Central America/Latin America markets. Vendors should also refocusing marketing efforts away from already established channels, such as financial services and dedicate time to more “stable revenue streams,” the report advised.