02 Jun 2016

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FRAMINGHAM, Mass., June 2, 2016 – The International Data Corporation ( IDC ) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView showed mixed results in the first quarter of 2016 (1Q16), with overall videoconferencing equipment revenue decreasing 21.1% quarter over quarter, but increasing 2.3% year over year. Total worldwide enterprise video equipment revenue in 1Q16 was over $495 million, down from about $628 million in 4Q15. The total number of videoconferencing units sold in 1Q16 (101,391) decreased 8.0% quarter over quarter, but increased 9.9% compared to 1Q15.

From a market segment perspective:

• Multi-codec telepresence equipment revenue ($23.9 million) was down 44.4% quarter over quarter, but increased 27.4% year over year in 1Q16. Unit shipments were down 47.1% quarter over quarter, but increased 48.8% year over year.
• Room-based videoconferencing system revenue ($359.6 million) decreased 15.4% quarter over quarter, but increased 9.8% year over year. Unit shipments decreased 8.8% quarter over quarter, but increased 10.4% year over year.
• Personal videoconferencing systems revenue ($41.8 million) – including executive desktop systems - decreased both 7.9% compared to 4Q15 and 5.7% year over year. Unit shipments were down 4.3% quarter over quarter, but increased 8.2% compared to 1Q15.
• Video infrastructure equipment revenue ($69.9 million) – including MCUs and other video-related infrastructure – decreased both 38.8% quarter over quarter and 25.3% year over year.

Regional results in 1Q16 were as follows:

• North America revenue decreased 17.4% quarter over quarter, but increased 17.8% year over year.
• Latin America revenue decreased both 30.6% quarter over quarter and 26.4% year over year.
• Europe, Middle East & Africa (EMEA) revenue decreased both 26.3% quarter over quarter and 12.6% year over year.
• Asia/Pacific revenue decreased 19.2% quarter-over-quarter, but increased 6.3% year-over-year.

"Some mixed news for the worldwide enterprise videoconferencing equipment market in 1Q16 as it saw mostly negative quarter-over-quarter results but also some positive year-over-year numbers, including overall revenue and unit shipments growing 2.3% and 9.9% year over year respectively," said Rich Costello , senior analyst, Enterprise Communications Infrastructure , at IDC. "The quarterly declines are mainly due to the usual seasonality, with the first quarter pretty much always the weakest of the year, and the fourth quarter usually the strongest. So the market is not doing as bad as the quarterly numbers might indicate."

Key Vendor Updates:

• Cisco's 1Q16 results showed a 20.9% revenue decrease quarter over quarter, but a 9.0% year-over-year revenue increase. Cisco remained the leader in enterprise videoconferencing equipment with a 45.4% share of the worldwide market.
• Polycom's revenue decreased both quarter over quarter (down 14.6%) and year over year (declining 16.2%) in 1Q16. Polycom ranked second in enterprise videoconferencing equipment with a 20.8% share of the worldwide market.
• Huawei's quarter-over-quarter revenue decreased 46.8%, but increased 3.7% year over year in 1Q16. Huawei ranked third with an 11.2% share of the worldwide enterprise videoconferencing market.

"IDC survey data on adoption indicates that video is still a key component of collaboration and continues to place high on the list of priorities for many organizations," said Petr Jirovsky , Research Manager, Worldwide Networking Trackers. "The 2016 IDC Enterprise Communications Survey data showed more than 85% of respondents either use videoconferencing presently or plan to use it within the next two years. This is a slight percentage increase over our last survey in 2014."

IDC's 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, Room-based Videoconferencing, 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 (knagamine@idc.com).