Skip to main content

Videoconference and Telepresence Market Volatility

Applications for a variety of video-based communication and collaboration use-cases have grown significantly over the last decade. Overall market adoption has been fueled by free services -- such as Microsoft Skype and Google Hangouts -- which enables more people to become familiar with the process of impromptu or scheduled online face-to-face meetings.

That being said, there are still issues with market shifts that increase the volatility for vendors of enterprise products and services. According to the latest worldwide market study by International Data Corporation (IDC ), there were mixed results in the third quarter of 2015 (3Q15) with overall videoconferencing equipment revenue increasing 0.8 percent quarter over quarter but declining -3.3 percent year over year.

The total worldwide enterprise video equipment market revenue in 3Q15 was over $511 million -- that's up from $507 million in 2Q15.

The total number of videoconferencing units sold in 3Q15 decreased both quarter over quarter (-4.4%) and year over year (-0.7%).

Videoconference and Telepresence Market Segmentation:
  • Multi-codec telepresence equipment revenue ($33 million) was up 4.2 percent quarter over quarter, but declined -2.3 percent year over year.
  • Room-based videoconferencing system revenue ($348 million) increased 2.5 percent quarter over quarter and 0.3 percent year over year.
  • Personal videoconferencing systems revenue ($42 million), including executive desktop systems, decreased -29.9 percent quarter over quarter, but increased 21.9 percent year over year.
  • Video infrastructure equipment revenue ($88 million), including MCUs and other video-related infrastructure, increased 16.2 percent quarter over quarter, but was down -22.3 percent year over year, continuing a declining annual trend.

Videoconference and Telepresence Regional Results:
  • The Americas (U.S., Canada and Latin America markets) revenue ($202 million) increased 1.4 percent quarter over quarter, but declined -6.5 percent year over year.
  • Europe, Middle East & Africa (EMEA) revenue ($141 million) decreased both -9.2 percent quarter over quarter and -5.3 percent year over year.
  • Asia-Pacific revenue ($168 million) increased both 10.1 percent quarter over quarter and 2.8 percent year over year.

"Overall, worldwide enterprise videoconferencing equipment revenue was mostly flat in 3Q 2015, with some low single-digit growth in room-based and telepresence systems quarter-over-quarter," said Rich Costello, senior analyst at IDC. "The Asia-Pacific region enjoyed stronger video equipment revenue growth on both a quarter-over-quarter and year-over-year basis in the quarter."

IDC reports that they continue to see the effect of lower-cost video systems and products, new software- and cloud-based video offerings, and Web browser usage for real-time video collaboration combining to fundamentally impact how videoconferencing solutions are bought and deployed by all organizations today.

Popular posts from this blog

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Top 10 CFO Priorities Require Rethinking Finance

The Chief Financial Officer (CFO) role is essential to digital business growth. While CFOs do not get closely involved in the tactical details of the digital transformation of their functions, they still recognize its strategic importance. According to the latest survey by Gartner, CFOs are faced with the challenge of balancing the need for substantive digital business innovation with financial cost control and risk management. "CFOs will be stretched thinly across many activities in 2023. The survey revealed a wide range of actions CFOs plan to either lead or be significantly involved with," said Marko Horvat, vice president at Gartner. Survey Findings: The Top Ten Priorities Cost Optimization - Cost reduction remains the top priority for CFOs as they look for ways to cut costs and improve efficiency in their operations. This includes identifying cost-saving opportunities through automation, outsourcing, and business process improvement. Business Continuity - The global C