Worldwide Enterprise Videoconferencing and Telepresence Market Sees Mixed Third Quarter Equipment Revenue Results, According to IDC
The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence QView showed mixed results for the third quarter of 2013 (3Q13), with overall videoconferencing equipment revenue increasing 8.2% quarter over quarter, but declining -9.7% year over year. Total worldwide enterprise video equipment market revenue in 3Q13 was approximately $576 million.
From a market segment perspective, the quarterly revenue growth was positive across all segments, while the yearly revenue growth was just the opposite. Multi-codec immersive telepresence equipment revenue was up 13.1% quarter over quarter, but still declined -16.3% year over year. Similarly, video infrastructure equipment, including hardware MCUs and other video-related products, increased 13.7% quarter over quarter, but declined -16.7% year over year. Room-based video systems increased 6% quarter over quarter in 3Q13, but decreased 5% year over year. And desktop video systems showed 4.7% revenue growth quarter over quarter, but declined -13.6% year over year in 3Q13.
Regionally, Latin America (41.8%), Europe, Middle East and Africa (EMEA) (22.6%), and North America (3.9%) all showed positive quarter-over-quarter revenue growth in 3Q13, while revenue in Asia/Pacific (-3.7%) declined quarter over quarter. In addition, Asia/Pacific (-13.7%) and North America (-18.2%) showed the largest year-over-year declines in 3Q13, while both EMEA (3.4%) and Latin America (10.7%) experienced year-over-year revenue growth.
"Interest in video and collaboration technology and applications helped the quarterly revenue numbers. But the lingering macroeconomic situation – including some softness in emerging markets, the recession in Europe, and the sequestration in the U.S. (i.e. budget cuts) – produced some cautionary IT spending that has impacted year-over-year video equipment revenue growth so far in 2013," said Rich Costello, Senior Analyst, Enterprise Communications Infrastructure at IDC. "In addition and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-centric products and offerings on the enterprise video equipment market."
Key Vendor Updates:
- Cisco's 3Q13 results showed a 17.9% quarter-over-quarter revenue increase, but a -7.6% year-over-year decline in video equipment revenue. Cisco remains the leader in enterprise videoconferencing equipment with a 44.7% share of the worldwide market.
- Polycom's revenue decreased -11.4% quarter over quarter in 3Q13 and was down -14.5% year over year in the quarter. Polycom ranks second in enterprise videoconferencing equipment with a 23.9% share of the worldwide market.
- Huawei's 43.2% quarter-over-quarter revenue increase and 2.5% year-over-year revenue increase in 3Q13 were good for a third-ranked 10.1% share of the worldwide enterprise videoconferencing market.
"Video as a key component of collaboration continues to place high on the list of priorities for many organizations," said Petr Jirovský, Research Manager, Worldwide Networking Trackers. "IDC believes that among the challenges customers are currently trying to work through are exactly when and how to provision their video deployments, as more software-centric solutions and video cloud service offerings become part of the enterprise video market landscape."
The IDC Worldwide Quarterly Enterprise Videoconferencing and Telepresence QView provides total market size and vendors 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 (firstname.lastname@example.org).
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. For more than 49 years, IDC has provided strategic insights to help our 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.
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