Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Showed Mixed Results in the Third Quarter, According to IDC

08 Dec 2015

Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Increased 0 .8 % Quarter Over Quarter but Declined - 3.3 % Year Over Year in Third Quarter of 2015

FRAMINGHAM, Mass., Dec ember 8 , 2015 – The International Data Corporation (IDC ) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed mixed results in the third quarter of 2015 (3Q15) with overall videoconferencing equipment revenue increasing 0.8% quarter over quarter but declining -3.3% year over year. Total worldwide enterprise video equipment market revenue in 3Q15 was over $511 million, up from $507 million in 2Q15. The total number of videoconferencing units sold in 3Q15 decreased both quarter over quarter (-4.4%) and year over year (-0.7).

From a market segment perspective:

• Multi-codec telepresence equipment revenue ($33 million) was up 4.2% quarter over quarter, but declined -2.3% year over year.

• Room-based videoconferencing system revenue ($348 million) increased 2.5% quarter over quarter and 0.3% year over year.

• Personal videoconferencing systems revenue ($42 million), including executive desktop systems, decreased -29.9% quarter over quarter, but increased 21.9% year over year.

• Video infrastructure equipment revenue ($88 million), including MCUs and other video-related infrastructure, increased 16.2% quarter over quarter, but was down -22.3% year over year, continuing a declining annual trend.

Regional results in 3Q15 were as follows:

• The Americas (U.S., Canada and Latin America) revenue ($202 million) increased 1.4% quarter over quarter, but declined -6.5% year over year.

• Europe, Middle East & Africa (EMEA) revenue ($141 million) decreased both -9.2% quarter over quarter and -5.3% year over year.

• Asia/Pacific revenue ($168 million) increased both 10.1% quarter over quarter and 2.8% year over year.

"Overall, worldwide enterprise videoconferencing equipment revenue was mostly flat in 3Q 2015, with some low single-digit growth in room-based and telepresence systems quarter-over-quarter," said Rich Costello , Senior Analyst, Enterprise Communications Infra structure at IDC. "The Asia/Pacific region enjoyed stronger video equipment revenue growth on both a quarter-over-quarter and year-over-year basis in the quarter."

Vendor Highlights

• Cisco's 3Q15 video results showed a 1.5% quarter-over-quarter revenue increase and a 7.1% year-over-year increase. Cisco remained the leader in worldwide enterprise videoconferencing equipment with a 45.9% share of the worldwide market, up from 45.6% in 2Q 2015.

• Polycom's video revenue decreased -7.0% quarter over quarter and -18.1% year over year in 3Q15. Polycom ranked second in worldwide enterprise videoconferencing equipment with a 22.8% share of the worldwide market, down from 24.7% in 2Q15.

• Huawei's 3Q15 revenue increased 24.1% quarter over quarter and 10.1% year over year in 3Q15. Huawei ranked third with a 12.3% share of the worldwide enterprise videoconferencing market, up from 10.0% in 2Q 2015.

"We continue to see the effect of lower-cost video systems and products, new software- and cloud-based video offerings, and Web browser usage for real-time video collaboration combining to fundamentally impact how videoconferencing solutions are bought and deployed by organizations today," said Petr Jirovsky , Research Manager, Worldwide Networking Trackers.

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.