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Worldwide enterprise videoconferencing equipment market shows positive signs of growth

Worldwide enterprise videoconferencing equipment market shows positive signs of growth

“Some much needed good news for the enterprise videoconferencing market."

Overall videoconferencing equipment revenue increased 4.8 percent quarter over quarter and 5.1 percent year over year, according to recent IDC findings.

However, the enterprise video infrastructure equipment continued its decline due to the increasing availability of video cloud service offerings.

Total worldwide enterprise video equipment market revenue in 2Q15 was over US$507 million, up from US$484 million in 1Q15.

Meanwhile, the total number of videoconferencing units sold in 2Q15 increased 7.4 percent quarter over quarter and 21.0 percent year over year in 2Q15.

“Some much needed good news for the enterprise videoconferencing market - revenue and video endpoint shipments were up in all major regions in the second quarter, except Latin America,” says Rich Costello, Senior Analyst, Enterprise Communications Infrastructure, IDC.

“A surprising 2Q15 highlight had multi-codec telepresence systems up in both revenue and unit shipments, as the availability of some new high-end systems positively impacted the market. This interrupted a downward trend for these high-end video solutions.”

From a market segment perspective, multi-codec telepresence equipment revenue increased 70.3 percent quarter over quarter and 8.0 percent year over year while unit shipments were also up 67.7 percent sequentially and 14.8 percent year over year.

Room-based videoconferencing system revenue increased 3.7 percent over the first quarter and 8.8 percent compared to one year ago -unit shipments increased 1.6 percent quarter over quarter and 11.1 percent year over year.

Personal videoconferencing systems revenue - including executive desktop systems - increased 36 percent quarter over quarter and 80.8 percent year over year - unit shipments were up 26.0 percent sequentially and 58.8 percent on an annual basis.

Video infrastructure equipment revenue - including MCUs and other video-related infrastructure - continued its declining trend, decreasing -19.4 percent quarter over quarter and -30.0 percent year over year.

Regional results in 2Q15 showed that in Asia/Pacific, revenue increased 1.7 percent sequentially and 3.8 percent on an annual basis.

“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," adds 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.”

Cisco's 2Q15 results showed a 12.0 percent revenue increase quarter over quarter and 24.9 percent year over year.

Cisco remained the leader in enterprise videoconferencing equipment with a 45.6 percent share of the worldwide market, up from 42.6 percent in 1Q15.

Polycom's revenue increased 2.0 percent quarter over quarter, but declined -14.1 percent year over year in 2Q15.

Polycom ranked second in enterprise videoconferencing equipment with a 24.7 percent share of the worldwide market, down from 25.4 percent in 1Q15.

Huawei's quarter-over-quarter revenue decreased -4.8 percent, but increased 15.0 percent year over year in 2Q15.

Huawei ranked third with a 10 percent share of the worldwide enterprise videoconferencing market, down from 11.0 percent in the first quarter of 2015.


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