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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.

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