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Industry Announcements

Tracker

Worldwide enterprise videoconferencing and telepresence equipment market showed overall positive results in third quarter, according to IDC

Via IDC

Dec 15, 2016

Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Increased 7.4% Quarter Over Quarter and 6.1% Year Over Year in Third Quarter 2016

FRAMINGHAM, Mass., December 15, 2016 – The International Data Corporation (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."

Key Vendor Highlights

  • 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.

The IDC's Worldwide Quarterly Enterprise Video conferencing and Telepresence QV iew 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, Videoconferencing (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.

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