Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Showed Mixed Results in the Second Quarter, According to IDC
29 Aug 2014
Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Increased 1.8% Quarter Over Quarter, But Declined -9.0% Year Over Year in the Second Quarter of 2014
FRAMINGHAM, Mass., Aug 29, 2014 – The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed mixed results in the second quarter of 2014 (2Q14) with overall videoconferencing equipment revenue increasing 1.8% quarter over quarter but decreasing -9.0% year over year. Total worldwide enterprise video equipment market revenue in 2Q14 was $482 million. The total number of video units sold in 2Q14 increased 7.2% quarter over quarter and 5.5% year over year.
From a market segment perspective, multi-codec immersive telepresence equipment revenue was up slightly (0.6%) quarter over quarter, but down -17.3% year over year. Immersive telepresence units were up 2.3% quarter over quarter, but down -12.9% year over year. Room-based video system revenue increased 4.5% quarter over quarter, but decreased -4.5% year over year. Room-based units sold were up 10.8% quarter over quarter and 7.7% year over year. Video infrastructure equipment, including MCUs and other video-related infrastructure products, declined -5.7% quarter over quarter and 14.1% year over year.
Regionally, North America (U.S. and Canada) revenue increased 6.8% quarter over quarter, but decreased 12.2% year over year in 2Q14. Latin America had negative quarter-over-quarter revenue growth (-12.6%), but its year-over-year revenue increased 9.1% in 2Q14. In Europe Middle East & Africa (EMEA), revenue decreased -5.4% quarter over quarter and -4.1% year over year in 2Q14. In Asia/Pacific, revenue increased 6.5% quarter over quarter, but decreased -12.1% year over year in 2Q14.
"We continue to see the impact of delayed customer buying decisions, lower-cost systems, more software-centric products, and competitive cloud-based video service offerings on the worldwide enterprise video equipment market," said Rich Costello, Senior Analyst, Enterprise Communications Infrastructure at IDC. "The mixed video equipment results are also indicative of the ongoing transition from a primarily hardware-based reporting model to one impacted by the interest in and growth of video subscription services. On the bright side for the video equipment vendors, most or all of these vendors now offer, or are ramping-up to offer, cloud-based video alternatives to customers – in addition to their own lower cost, premises-based systems."
Key Vendor Highlights:
- Cisco's 2Q14 results showed declines of -2.4% quarter over quarter and -15.2% year over year in video equipment revenue. But Cisco remains the leader in enterprise videoconferencing equipment with a 38.4% share of the worldwide market.
- Polycom's revenue grew 6.7% quarter over quarter but declined -6.2% year over year in 2Q14. Polycom ranks second in enterprise videoconferencing equipment with a 30.3% share of the worldwide market.
- Huawei's revenue increased 18.6% quarter over quarter and 8.6% year over year in 2Q14. Huawei ranks third with a 9.1% share of the worldwide enterprise videoconferencing market.
"Despite the mixed results, recent IDC survey data indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organizations," said Petr Jirovsky, Research Manager, Worldwide Networking Trackers. "IDC believes that among the challenges customers are currently working through is determining exactly when and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape."
The IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence QView provides total market size and vendor share data in an easy-to-use Excel Pivot Table format. The overall market is further segmented by product type [Immersive Telepresence, Telepresence (Room-based), Personal Videoconferencing, Video MCU and Other]; form factor (Endpoint, Infrastructure); and screen definition (High Definition, Standard Definition). Measurement for the enterprise videoconferencing and telepresence market is provided in factory revenue and unit shipments.
For more information about IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview, please contact Kathy Nagamine (email@example.com).
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com. Follow IDC on Twitter at @IDC.
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