Over the years, video conferencing has evolved into a cutting-edge technology facilitating real-time, in-person, and face-to-face conversation.  In the present scenario, the technology has successfully entered the lexicon of modern communication mix.  With technological advancements, video conferencing has reached 3G mobile applications arena including streaming, instant messaging, scheduling, and others.
Video conferencing is offered on two underlying networks - Integrated Services Digital Network (ISDN) and Internet Protocol (IP).  Improved flexibility, seamless integration with other applications, enhanced reliability, and lower cost of networks are propelling the industry to adopt video conferencing based on IP networks.  Key factors influencing growth include lower costs, high picture quality, clarity in audio, uninterrupted connections, and reduced transmission delays.  Use of 3G networks for mobile video conferencing is also a key driver of market growth.
United States is the largest market worldwide, worth an estimated US$4 billion in 2007. Europe is the second largest regional market followed by Asia at third position.  Europe and the US together account for close to 75 percent of the global video conferencing market.  The global and regional markets are expected to grow at CAGRs ranging between 6% and 14%.  Video conferencing services represent the largest market segment with revenues estimated at US$6.7 billion in 2007. IP video conferencing systems is expected to be worth US$1.2 billion by 2010 while IP Services, one of the fastest growing market segments, is projected to reach US$8.3 billion by 2010.
The global marketplace is characterized by the presence of major telecom companies as well as systems and service providers.  The three-tier market structure includes participants such as AT&T, Avaya, Emblaze-VCON, Genesys Conferencing Inc, Global Crossing Limited, Alcatel-Lucent, Polycom, Inc, Sony Electronics, Inc, Sprint Nextel Corporation, TANDBERG ASA, Verizon Business, VTEL Corp, Wire One Communications, Inc and others.  Several regional players operate in the US and European services market.