Videoconferencing and Telepresence Equipment Market Grows in 3Q16

Videoconferencing and Telepresence Equipment Market Grows in 3Q16

Foto: Fotolia

IDC Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed positive results in the third quarter of 2016 (3Q16) with overall videoconferencing equipment revenue increasing both 7.4% quarter over quarter and 6.1% year over year. Total worldwide enterprise video equipment market revenue in 3Q16 was over $542 million, up from just over $505 million in 2Q16. The total number of videoconferencing units sold in 3Q16 also increased 0.8% quarter over quarter and 10.9% year over year.

From a market segment perspective in 3Q16:

  • Multi-codec telepresence equipment revenue ($24.6 million) was down both quarter over quarter (-20.8%) and year-over-year (-26.1%). Telepresence unit shipments also decreased quarter over quarter (-15.0%) and year over year (-26.4%).
  • Room-based videoconferencing system revenue ($372.6 million) increased 5.7% quarter over quarter and 7.0% year over year. Unit shipments also increased 1.0% quarter over quarter and 14.8% year over year.
  • Personal videoconferencing systems revenue ($37.8 million) – including executive desktop systems – decreased quarter over quarter (-2.4%) and year over year (-10.5%). Unit shipments were relatively flat (0.4%) quarter over quarter, but down year over year (-0.7%).
  • Video infrastructure equipment revenue ($107.5 million) – including MCUs and other video-related infrastructure – increased 29.6% quarter over quarter and 22.5% year over year.

Regional results in 3Q16 were as follows:

  • North America (U.S. and Canada) revenue increased 16.0% quarter over quarter and 10.8% year over year.
  • Europe, Middle East & Africa (EMEA) revenue increased 8.8% quarter over quarter and 1.6% year over year.
  • Asia/Pacific revenue decreased quarter over quarter (-1.1%), but increased 7.3% year over year.
  • Latin America revenue was flat (0.1%) quarter over quarter, but saw a year-over-year decline of 15.6%.

"Some good news for the worldwide enterprise videoconferencing equipment market – revenue and video endpoint shipments (units) saw both sequential and annual growth in 3Q16, although some regions showed declines," said Rich Costello, senior analyst, Enterprise Communications Infra structure. "A surprising 3Q16 highlight had video infrastructure equipment experiencing double-digit revenue growth both quarter over quarter and year over year, halting a quarterly downward trend in that category of the global enterprise videoconferencing equipment market."

Concerning top vendors, Cisco's 3Q16 results showed 11.6% quarter-over-quarter revenue growth and 6.4% growth year over year. Cisco remained the leader in enterprise videoconferencing equipment with a 46.0% share of the worldwide market in 3Q16. Polycom's revenue increased 14.7% quarter over quarter, but declined 2.3% year over year in 3Q16. Polycom ranked second in enterprise videoconferencing equipment with a 21.0% share of the worldwide market in 3Q16. Huawei's revenue declined 8.3% quarter over quarter, but increased 4.6% year over year in 3Q16. Huawei ranked third with a 12.2% share of the worldwide enterprise videoconferencing market in 3Q16.

More from category

Digital Transformation and IoT Will Drive Investment in ITOM Through 2020

Digital Transformation and IoT Will Drive Investment in ITOM Through 2020

22 Aug 2017 comment

The growth of digital business and the Internet of Things (IoT) is expected to drive large investment in IT operations management (ITOM) through 2020, according to Gartner. A primary driver for organizations moving to ITOM open-source software (OSS) is lower cost of ownership.

New eMarketer Forecast Sees Mobile Driving Retail Ecommerce in China

New eMarketer Forecast Sees Mobile Driving Retail Ecommerce in China

21 Aug 2017 comment

China, the world’s largest ecommerce market, is set for continued growth in 2017, according to eMarketer’s latest worldwide retail forecast. Retail ecommerce sales in the country are expected to reach $1.13 trillion this year, a figure equal to 23.1% of total retail sales.

Worldwide Semiconductor Capital Spending Will Grow 10.2% in 2017

Worldwide Semiconductor Capital Spending Will Grow 10.2% in 2017

21 Aug 2017 comment

Worldwide semiconductor capital spending is projected to increase 10.2 percent in 2017, to $77.7 billion, according to Gartner. This growth rate is up from the previous quarter's forecast of 1.4 percent, due to continued aggressive investment in memory and leading-edge logic which is driving spending in wafer-level equipment.