-- Vendors will have to adapt products and market strategies to regional and cultural needs
BUENOS AIRES, Argentina, Sept. 17, 2014 /PRNewswire/ -- Hosted conferencing services are gaining traction in Latin America, a region otherwise dominated by on-premises solutions. Greater awareness on the benefits of advanced collaboration tools, including cost reduction and productivity enhancements, is igniting this demand for hosted conferencing services.
New analysis from Frost & Sullivan, Latin American Conferencing Services Market, finds that the market earned revenues of $71.8 million in 2013 and projects this to grow at a compound annual growth rate of 21.9 percent in the next seven years.
"Improved economic conditions in countries such as Mexico, Colombia and Peru are attracting foreign capital investment to Latin America," noted Frost & Sullivan Information and Communication Technologies Industry Manager Alaa Saayed. "As global companies expand into Latin America and local firms widen their presence, both find themselves in need of cost-effective yet high-impact collaboration tools."
However, the enduring popularity of on-premises communication and collaboration solutions and the emergence of all-in-one unified communication systems are limiting the scope for hosted conferencing services in Latin America. The more commonly deployed audio conferencing bridges and video conferencing infrastructure continue to eat into the share of conferencing service vendors.
The lack of significant interest from some regional carriers and service providers to resell or offer their own enterprise conferencing services further curbs market development. While many regional carriers have launched basic audio conferencing services, few deliver a comprehensive stack of audio, web and video hosted conferencing services. Some carriers believe that the addressable market is too small to justify the increase in focus. Others simply do not want to venture into a space where incremental network and infrastructure investments are required and customer price sensitivity is high.
"In order to penetrate the market, conferencing service vendors must adapt their products and market strategies to address specific regional and cultural needs," suggested Saayed. "With customers expecting more for less, vendors need to furnish innovative, bundled solutions at compelling prices."
Establishing strategic partnerships with regional carriers, providing mobility as part of the solution, and enabling integration with on-premises equipment will also be crucial for conferencing service providers to strengthen their base in the Latin American market.
If you are interested in more information on this study, please send an e-mail to Francesca Valente, Corporate Communications, at firstname.lastname@example.org.
Latin American Conferencing Services Market is part of the Conferencing & Collaboration Growth Partnership Service program. Frost & Sullivan's related studies include: Latin America Unified Communications and Collaboration Solutions Market, Videoconferencing Use in Tertiary Education in Latin America, European Conferencing Services Market, and North American Conferencing Services Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
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Latin American Conferencing Services Market
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SOURCE Frost & Sullivan