- Expects to gain market share by reinventing the video space by offering intelligent solutions.
- MEA is a very small market and contributes about 7% to its EMEA business and Jabra has a big role to play in the next three years, a top regional official says.
- Jabra expects a growth of between 20% and 40% in the region this year as the demand is huge.
Jabra aims to become one of the top leaders in the video conferencing space in the next three years and give tough competition to the big giants in the market, a top official said.
Speaking to Tech Channel News, Nicolas Bliaux, Managing Director for Eastern Europe, Russia & CIS, Middle East, Turkey and Africa at Jabra, said that the video conferencing market is growing due to the hybrid work model and video has become part of people’s daily routine.
Many know Jabra as a leader in the TWS space but 80 per cent of its business comes from the B2B space after the acquisition by GN Audio, a division of the Danish company GN Group, in 2000.
In 2019, GN Audio acquired Altia Systems to add video conferencing products to their line-up and the first video product from the acquisition was named Jabra PanaCast.
GN Group has also been responsible for several developments, including laying the first intercontinental telegraph connections in the 19th century, developing 2.4GHz technology in hearing aids for direct connectivity and producing the world’s first made-for-iPhone hearing aid with direct stereo sound streaming.
GN’s current roster includes Jabra, ReSound, a hearing aid brand, and wireless headset-maker BlueParrot.
Expanding its portfolio
“We forayed into the video conferencing solutions to expand and complete our portfolio and to make sure we offer a full collaborative experience. We have poured some big investments into this space as the video conferencing market is growing due to the hybrid work model and would become one of the top leaders in the next three years,” Bliaux said.
The big leaders in the video conferencing space are Microsoft, Cisco, Zoom and Avaya, to name a few.
MarketsandMarkets forecasts the global video conferencing market size is expected to grow from $9.2 billion in 2021 to $22.5 billion by 2026, at an annual growth rate of 19.7 per cent.
Bliaux said that the hybrid work structure is here to stay even after Covid and it has been there for a long time.
Call to invest in right technology
“It is not something new for Jabra when compared to some industries but it has become a reality for many. Many employees want personal technology to take with them wherever they wish to work and prefer companies to select and provide that technology to make the hybrid experience equal,” he said.
Moreover, he said the work structure is going through a significant change and today, there is no one solution fitting for all as each case is different.
“The way we collaborate has changed significantly and most of the people would like to work from home. 68 per cent of the employees prefer a hybrid work structure.
“As companies evolve their hybrid working strategies, organisations can deliver a better working experience for employees by continuing to invest in the right technology and giving employee’s autonomy over the working day. People want more quality and to communicate easily,” he said.
Bliaux said the video conferencing market is huge and like to compete with the giants.
“Video is one of the key pillars of our strategy. Today, our penetration in the market is very small. We know that we can gain market share by reinventing the video space by offering intelligent solutions,” he said.
He added that the Middle East and Africa [MEA] market is growing a lot and there is big growth potential.
Seeks to acquire more brands
“From the enterprise point of view, MEA is a very small market for Jabra and contributes about seven per cent to its EMEA business and we a big role to play in the next three years,” Bliaux said.
Out of 80 per cent of the B2B business, Jabra is present in three main regions – North America, EMEA and the Asia Pacific. North America and CALA (Central America and Latina America) and EMEA contribute about 60 per cent from the 80 per cent.
“2021 will be a fantastic year for Jabra after the slowdown in 2020 despite global chip storage. We expect a growth of between 20 per cent and 40 per cent in the region this year as the demand is huge,” Bliaux said.
When asked about the aim of acquiring gaming peripherals-maker SteelSeries from Axcel for $1.2 billion, he said that it is pretty new for the group but represents a strong growth opportunity.
“The acquisition will bring developments in software, product offerings and a great IP to GN. The DNA of SteelSeries is similar to us and it will benefit from our commercial and operational expertise and SteelSeries will continue its strong growth trajectory in the PC and console gaming market,” he said.
The acquisition will give GN access to SteelSeries’ headsets, keyboards, mice, and other peripherals for PC and console gaming, as well as its sub-brands, like Nahimic.
“We are financially very strong and will be looking to acquire more brands to expand our portfolio,” he said.
GN employs 6,500 people and reported annual revenue of 13.4 billion Danish Krone ($2.08 billion) in 2020 while the Jabra brand accounts for about 8.7 billion Danish Krone ($1.45 billion) and employs 1,900 people.
Jabra will be showcasing its professional headsets, intelligent video conferencing devices and technologies designed to help organisations deliver and overcome challenges that come with the adaptation to a hybrid work environment at Gitex, taking place from October 17-21 in Dubai, UAE.
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