In 2006, the UK market for videoconferencing equipment and services was worth £202m at current end-user prices. Market growth appears to have accelerated in 2006; Key Note estimates that the overall market grew by 12.2% on 2005.

The videoconferencing market includes: client equipment (both group systems and desktop/personal systems); infrastructure equipment; and services. Videoconferencing forms part of the wider teleconferencing market, which, in turn, includes audioconferencing and dataconferencing. Dataconferencing allows people to share displays of data and work on them together. One major trend in 2005 and 2006 was the convergence of these three markets.

The background to the videoconferencing market in the UK was generally favourable between 2002 and 2006. There was continuous economic growth and increased business investment from 2004 onwards, and gradual expansion of the size of the workforce. The important UK banking and finance customer sector has remained strong. Moreover, high oil prices have affected the cost of business travel, and organisations are under constant pressure from shareholders or the public to reduce excess expenditure. Increased security at airports can cause delays and cancellations. The effect of these delays is two-fold: first, it increases the amount of productive time lost through travel; second, it fatigues the business traveller. Furthermore, in 2005 and 2006, there was increasing publicity concerning the contribution of air travel to global warming. The European Telecommunications Network Operators' Association (ETNO) has advised that 22.4 million tonnes of carbon dioxide (CO2) could be saved by cutting 20.4% of business travel in EU-25 countries and replacing it with videoconferencing or other non-travel solutions.

The problem associated with videoconferencing over Internet protocol (IP) networks have largely been solved and there has been a major swing in the last 10 years away from the use of integrated services digital networks (ISDNs), which are expensive, to the use of IP networks. The next major trend in the market is expected to be the adoption of high-definition (HD) equipment; many new HD products came onto the market in 2005 and 2006, offering high video and audio quality. Further along the spectrum from HD is telepresence, which, manufacturers claim, delivers an experience that is almost the same as being physically present in the same room. The entry of new competitors into this sector will help to reduce prices.

By 2011, the market is expected to reach £294m at current end-user prices. 2007 will see a continuation of the strong growth in desktop systems seen in 2006. The market swing towards HD equipment is expected to commence imminently and continue through to 2011. Partnerships between the videoconferencing industry and IT companies such as Microsoft and IBM are making videoconferencing available through popular software packages. This is expected to help to spread the use of videoconferencing to a wider market.

1. Market Definition
REPORT COVERAGE
MARKET SECTORS
Client Equipment
Infrastructure Equipment
Services
MARKET TRENDS
Growth in the Workforce
Table 1: Total Workforce in the UK by Number of Jobs (million), June 2002-2006
Growth in Teleworking
Growth in Business Investment
Table 2: Business Investment at Current Market Prices (£m), 2002-2006
Table 3: Business Investment Chained Volumes Reference Year 2003 (£m), 2002-2006
The Cost of Business Travel
Terrorism and Other Threats
Time Spent on Travel
Reducing Environmental Impact
Better Communications
Increased use of Overseas Facilities
Decentralisation of Offices and Facilities
Increased Use of Mobile Technology
Data Storage Costs
Use of Integrated Networks
ECONOMIC TRENDS
Population
Table 4: UK Resident Population Estimates by Sex (000), Mid-Years 2001-2005
Gross Domestic Product
Table 5: UK Gross Domestic Product at Current and Annual Prices (£m), 2001-2005
Inflation
Table 6: UK Rate of Inflation (%), 2001-2005
Unemployment
Table 7: Actual Number of Unemployed Persons in the UK (million), 2001-2005
MARKET POSITION
The UK
Overseas

2. Market Size
THE TOTAL MARKET
Table 8: The Total UK Videoconferencing Market by Value at Current End-User Prices (£m), 2002-2006
Figure 1: The Total UK Videoconferencing Market by Value at Current End-User Prices (£m), 2002-2006
BY MARKET SECTOR
Table 9: The Total UK Videoconferencing Market by Sector by Value at Current End-User Prices (£m and %), 2006
Figure 2: The Total UK Videoconferencing Market by Sector by Value at Current End-User Prices (£m and %), 2006
OVERSEAS TRADE

3. Industry Background
Recent History
Number of Companies
EmployMent
DISTRIBUTION
HOW ROBUST IS THE MARKET?
LEGISLATION
Standards
Environmental Legislation
The WEEE Directive
The RoHS Directive
KEY TRADE ASSOCIATIONS
Communications & Information Technology Association
InfoComm
Intellect
Interactive Multimedia and Collaborative Communications Alliance
International Multimedia Teleconferencing Consortium

4. Competitor Analysis
THE MARKETPLACE
MARKET LEADERS
Aethra SpA
Company Structure
Current and Future Developments
Financial Results
Codian Ltd
Company Structure
Current and Future Developments
Financial Results
Direct Visual Ltd
Company Structure
Current and Future Developments
Financial Results
Emblaze-VCON
Company Structure
Current and Future Developments
Financial Results
LifeSize Communications Inc
Company Structure
Current and Future Developments
Financial Results
Martin Dawes Solutions Ltd
Company Structure
Current and Future Developments
Financial Results
Polycom (UK) Ltd
Company Structure
Current and Future Developments
Financial Results
Radvision Ltd
Company Structure
Current and Future Developments
Financial Results
Review Video LLC
Company Structure
Current and Future Developments
The Saville Group Ltd
Company Structure
Current and Future Developments
Financial Results
Scotty Group PLC
Company Structure
Current and Future Developments
Financial Results
Sony UK Ltd
Company Structure
Current and Future Developments
Financial Results
Tandberg UK Ltd
Company Structure
Current and Future Developments
Financial Results
Other Companies
Avistar Communications Corporation
VC-NET
VTEL Products Corporation
OUTSIDE SUPPLIERS
Outsourcing
Components
Software
MArketing activity
Exhibitions

5. Strengths, Weaknesses, Opportunities and Threats
STRENGTHS
WEAKNESSES
OPPORTUNITIES
THREATS

6. Buying Behaviour
Introduction
MANUFACTURING
HIGH-TECH INDUSTRIES
BANKING AND FINANCIAL SERVICES
RECRUITMENT AGENCIES
MEDICINE
LEGAL
PUBLIC SECTOR
EDUCATION and TRAINING

7. Current Issues
HIGH DEFINITION
TELEPRESENCE
Teliris
Hewlett-Packard
Cisco Systems Inc
CROSSING FIREWALLS
SELLING THE ENVIRONMENTAL CASE FOR TELECONFERENCING
MOBILE SOLUTIONS

8. The Global Market
Introduction
THE US
CHINA
JAPAN
EUROPE
INDIA
ASIA/PACIFIC

9. Forecasts
INTRODUCTION
The Economy
Population
Table 10: Forecast UK Resident Population by Sex (000), Mid-Years 2006-2010
Gross Domestic Product
Table 11: Forecast UK Growth in Gross Domestic Product in Real Terms (%), 2006-2010
Inflation
Table 12: Forecast UK Rate of Inflation (%), 2006-2010
Unemployment
Table 13: Forecast Actual Number of Unemployed Persons in the UK (million), 2006-2010
FORECASTS 2007 to 2011
Table 14: The Forecast Total UK Videoconferencing Market by Sector by Value at Current End-User Prices (£m), 2007-2011
Market Growth
Figure 3: Growth in the Total UK Videoconferencing Market by Value at Current End-User Prices (£m), 2002-2011
FUTURE TRENDS

10. Company Profiles
Codian ltd
Direct Visual LTD
Martin Dawes Solutions LTD
Polycom (uK) Ltd
The Saville Group Ltd
Scotty Group Plc
Tandberg UK Ltd

11. Consumer Confidence
METHODOLOGY
KEY FINDINGS THIS QUARTER
THE WILLINGNESS TO BORROW
Confidence Slips Slightly
Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Significantly More Adults Are Willing to Borrow
Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), November 2005-2006
SPENDING FROM SAVINGS
Little Change in Spending from Savings
Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), November 2005-2006
Saving Grows in Relative Importance
Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), November 2005-2006

12. Further Sources