Skip to main content

Videoconference and Telepresence Market Update

Why travel to meet with employees and vendor partners when you can just as easily interact with them via online video communication? Whatever motivates people to endure airline departure delays and airport security lines, just so they can attend internal business meetings, it clearly isn't their increased productivity.

Enterprise videoconferencing and telepresence systems market showed mixed results in the first quarter of 2016 (1Q16), with overall videoconferencing equipment revenue decreasing 21.1 percent quarter over quarter, but increasing 2.3 percent year over year, according to the latest study by International Data Corporation (IDC).

The total worldwide enterprise video equipment revenue in 1Q16 was over $495 million -- that's down from about $628 million in 4Q15. The total number of videoconferencing units sold in 1Q16 (101,391) decreased 8.0 percent quarter over quarter, but increased 9.9 percent compared to 1Q15.

"Some mixed news for the worldwide enterprise videoconferencing equipment market in 1Q16 as it saw mostly negative quarter-over-quarter results but also some positive year-over-year numbers -- including overall revenue and unit shipments growing 2.3 percent and 9.9 percent year over year respectively," said Rich Costello, senior analyst at IDC.

Video Communication Market Development 
  • Multi-codec telepresence equipment revenue ($23.9 million) was down 44.4 percent quarter over quarter, but increased 27.4 percent year over year in 1Q16. Unit shipments were down 47.1 percent quarter over quarter, but increased 48.8 percent year over year.
  • Room-based videoconferencing system revenue ($359.6 million) decreased 15.4 percent quarter over quarter, but increased 9.8 percent year over year. Unit shipments decreased 8.8 percent quarter over quarter, but increased 10.4 percent year over year.
  • Personal videoconferencing systems revenue ($41.8 million) – including executive desktop systems - decreased both 7.9 percent compared to 4Q15 and 5.7 percent year over year. Unit shipments were down 4.3 percent quarter over quarter, but increased 8.2 percent compared to 1Q15.
  • Video infrastructure equipment revenue ($69.9 million) – including MCUs and other video-related infrastructure – decreased both 38.8 percent quarter over quarter and 25.3 percent year over year.

Regional Results for First Quarter of 2016
  • North America revenue decreased 17.4 percent quarter over quarter, but increased 17.8 percent year over year.
  • Latin America revenue decreased both 30.6 percent quarter over quarter and 26.4 percent year over year.
  • Europe, Middle East & Africa (EMEA) revenue decreased both 26.3 percent quarter over quarter and 12.6 percent year over year.
  • Asia-Pacific revenue decreased 19.2 percent quarter-over-quarter, but increased 6.3 percent year-over-year.

IDC believes that the quarterly declines are mainly due to the usual seasonality in this market, with the first quarter pretty much always the weakest of the year, and the fourth quarter usually the strongest. So the video communication market seems to be status-quo, for the time being.

Popular posts from this blog

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic