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Worldwide Enterprise Videoconferencing and Telepresence Equipment Market Revenue Decreased -20.0% Quarter Over Quarter and -15.9% Year Over Year in First Quarter of 2014

(PresseBox) (Framingham, Mass., )
The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Equipment QView again showed declining results for the first quarter of 2014 (1Q14), with overall videoconferencing equipment revenue decreasing -20.0% quarter over quarter and -15.9% year over year. Total worldwide enterprise video equipment market revenue in 1Q14 reached $473.5 million. The total number of video units sold in 1Q14 was also down -13.3% quarter over quarter and 6.2% year over year.

From a market segment perspective, multi-codec immersive telepresence equipment revenue was down -25.2% quarter over quarter and -33.5% year over year, with immersive telepresence units down -34.7% quarter over quarter and -25.9% year over year. Room-based video system revenue was down -13.9% quarter over quarter and -10.1% year over year. Room-based units sold were down -13.7% quarter over quarter, but only declined -1% year over year. Video infrastructure equipment - including MCUs and other video-related infrastructure products - declined -29.2% quarter over quarter and -13% year over year.

Regionally, only Latin America (1.8%) showed positive quarter-over-quarter revenue growth in 1Q14. All the other major regions showed quarter-over-quarter revenue declines. And all the major regions showed year-over-year revenue declines in 1Q14 - Europe Middle East & Africa (-19.8%), Asia/Pacific (-16.4%), North America (-13.4%), and Latin America (-5.1%).

"We continue to see the impact of delayed customer buying decisions, lower-cost systems, more software-centric products, and competitive cloud-based video service offerings on the worldwide enterprise video equipment market," said Rich Costello, Senior Analyst, Enterprise Communications Infrastructure, at IDC. "The weak vendor results are also indicative of the ongoing transition from a primarily hardware-based reporting model to one impacted by the interest in and growth of video subscription services. On the bright side, most or all of these vendors are now offering cloud-based video alternatives to customers too - in addition to their own lower cost, premises-based systems."

1Q14 Vendor Highlights

- Cisco's 1Q14 results showed decreases of -27.8% quarter over quarter and -22.4% year over year in video equipment revenue. But Cisco remains the leader in enterprise videoconferencing equipment with a 40.1% share of the worldwide market.

- Polycom's revenue decreased -7.3% quarter over quarter and -8.4% year over year in 1Q14. Polycom ranks second in enterprise videoconferencing equipment with a 28.9% share of the worldwide market.

- Huawei's quarter-over-quarter revenue decreased -42% quarter over quarter and -1.9% year over year in 1Q14. Huawei still ranks third with a 7.8% share of the worldwide enterprise videoconferencing market.

"As dismal as these quarterly numbers are, video as a key component of collaboration continues to place high on the list of priorities for many organizations," said Petr Jirovsky, Research Manager, Worldwide Networking Trackers. "IDC believes that among the challenges customers are currently trying to work through are a market transition and determining exactly what, when, and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape."

The IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview provides total market size and vendor 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.

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IDC Central Europe GmbH

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. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help 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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