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Videoconference and Telepresence Market Upside


Results from the latest market study by International Data Corporation (IDC) showed a strong fourth quarter of 2011 (4Q11), with videoconferencing revenue growing 19.0 percent quarter over quarter and 24.6 percent year over year to reach $807.9 million.

Specifically, the single-codec telepresence segment of the market grew 38.7 percent year over year to $444.1 million and now accounts for 55.0 percent of the total market.

For the full year 2011, total enterprise videoconferencing market revenue reached $2.7 billion -- that's an increase of 20.5 percent over the full year 2010.

This compares favorably versus the 16.6 percent growth we saw in 2010 over 2009, further pointing to an accelerated adoption of video in the enterprise.

"Growth has been spurred on by more well-defined video use cases among organizations across a range of vertical market segments, including healthcare, higher education, financial services, legal, law enforcement, manufacturing, and retail," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC.

IDC also expects growth over the next several years to be bolstered by the impact of video integrated with vendor unified communications and collaboration portfolios, and increasing video usage among small work groups, desktop users, and mobile device users.

Highlights from the IDC market study include:
  • Video infrastructure equipment (MCUs, gateways, video network servers and appliances, etc.) grew to $215.1 million in 4Q11, up 18.4 percent quarter over quarter and 18.8 percent year over year, to finish the full year 2011 at $716.3 million, a 22.5 percent improvement over 2010.
  • Immersive telepresence revenue for the full year 2011 reached over $314.8 million in 2011, a 21.6 percent decrease over 2010 -- evidence of the continuing trend of video pushing down market.

There is little doubt about the success videoconferencing and telepresence have had over the past few years, fueled by strong revenue and shipment growth rates and the increasing popularity of video among enterprises.

According to IDC's assessment, the videoconferencing and telepresence market will continue to be one of the fastest growing networking markets for the foreseeable future.

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