The global videoconferencing and telepresence equipment market showed mixed results in the first quarter of 2015 (1Q15), with overall videoconferencing equipment revenue decreasing 21 per cent quarter over quarter, but increasing 2.2 per cent year over year.
According to IDC findings, total worldwide enterprise video equipment market revenue in 1Q15 was just over $US484 million, down from about $US613 million in 1Q14.
Meanwhile, the total number of videoconferencing units sold in 1Q15 decreased -16.4 per cent quarter over quarter, but increased 20.5 per cent year over year.
“The video equipment market results continue to reflect the on-going market transition from a primarily hardware-based reporting model to one impacted by lower-cost endpoints and growing interest in more software-based solutions and cloud services,” says Rich Costello, senior analyst, Enterprise Communications Infrastructure, IDC.
“A first quarter highlight had room-based and personal videoconferencing systems showing year-over-year growth in both revenue and unit shipments.”
From a market segment perspective, multi-codec telepresence equipment revenue ($US18.7 million) was down 47.4 per cent quarter over quarter and 36.2 per cent year over year in 1Q15.
In addition, unit shipments were also down 46.3 per cent sequentially and 30 per cent year over year.
Room-based videoconferencing system revenue ($US327 million) decreased 14.8 per cent quarter over quarter, but increased 9.9 percent year over year while unit shipments decreased 15.2 per cent compared to the fourth quarter of 2014, but increased 21 per cent compared to 1Q14.
Personal videoconferencing systems revenue ($US44 million), including executive desktop systems, decreased 22.6 per cent quarter over quarter, but increased 37.8 per cent year over year - unit shipments were down 19.9 per cent sequentially, but increased 19.3 per cent compared to one year ago.
Also, video infrastructure equipment revenue ($US93.7 million), including MCUs and other video-related infrastructure, decreased 30.8 per cent quarter over quarter and 17.9 per cent year over year.
Regionally speaking, Asia/Pacific revenue decreased 18.1 per cent quarter over quarter, but increased 9.0 per cent year over year.
Cisco's 1Q15 results showed a revenue decline of 18.5 per cent quarter over quarter, but an 8.8 per cent year-over-year revenue increase.
Cisco remained the leader in enterprise videoconferencing equipment with a 42.6 per cent share of the worldwide market.
Polycom's revenue decreased 15.7 per cent quarter over quarter and 10.1 per cent year over year in 1Q15 - Polycom ranked second in enterprise videoconferencing equipment with a 25.4 per cent share of the worldwide market.
Huawei's quarter-over-quarter revenue decreased 45.3 per cent, but increased 43.2 per cent year over year in 1Q15. Huawei ranked third with an 11 per cent share of the worldwide enterprise videoconferencing market.
“IDC survey adoption data indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organisations,” says Petr Jirovsky, Research Manager, Worldwide Networking Trackers, IDC.
“And customers continue to work through determining how best to provision their video deployments, as more software-centric and cloud-based service offerings become part of the enterprise video market landscape.”