Businesses around the globe will spend $3.8 billion (2.3 billion) on video conferencing by 2016, according to analyst firm Ovum.
Revenues from corporate use of video conferencing will see a compound annual growth rate of 5.79 per cent from 2011 to 2016.
Ovum's report attributed the extensive interest in video conferencing to an increasing business focus on "cost-cutting and productivity."
The company indicated that the market for 'immersive' video conferencing, sometimes called telepresence' would grow to around $1.1 billion (667 million) by 2016, thanks to a growth rate of 19.49 per cent. The figures involved are partially attributed to the increased investment from businesses in purpose-built video conferencing rooms where participants see life-size images of each other. Organisations taking advantage of such technology include GlaxoSmithKline, HSBC and News Corporation.
"Enterprises are seizing the huge opportunity that video conferencing offers them to cut costs and improve productivity by reducing business travel," said Richard Thurston, Ovum analyst and author of the report.
"The next five years will see solid increases in expenditure from businesses in every region around the globe.The improved quality of telepresence in terms of both visual and audio quality is resonating strongly with many large businesses."
Thurston also suggested larger firms may turn to third-party management specialists when it comes to their use of video conferencing. This could help fuel a speculated growth in managed services of 11.5 per cent by 2016.
