Worldwide Enterprise Videoconferencing and Telepresence Market Growth Decelerates on Weakness in the Immersive Telepresence Segment, According to IDC
FRAMINGHAM, Mass., May 29, 2012 – Results from the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview showed a noticeable deceleration in market growth in the first quarter of 2012 (1Q12) with videoconferencing revenue growing 14.4% year over year, well below the 23-25% year-over-year growth range witnessed in the last three consecutive quarters. Compared to the fourth quarter of 2011, the enterprise videoconferencing market declined 21.0% due to seasonality.
From a market segment perspective, the relative strength in the single-codec telepresence and the personal videoconferencing segments, which grew 28.5% and 52.6% year over year respectively, were offset by weakness in the multi-codec immersive telepresence and the "other" videoconferencing components segments, both of which saw year-over-year declines of 38.7% and 2.8% respectively. The first quarter of 2012 was the fifth consecutive quarter of year-over-year declines for the immersive telepresence segment, clear evidence of the ongoing trend of video pushing down market into the enterprise.
"The high-end, immersive telepresence market has been taking a hit lately as lower-cost, HD-quality video solutions, along with a range of new video deployment options for customers, have emerged," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC. "We still expect overall positive video market growth for the next several years though, driven by the impact of video integrated with vendors' unified communications and collaboration portfolios, and with increasing strength among small workgroup, desktop, and mobile collaboration users."
Key Vendor Updates
Cisco's 1Q12 results beat the overall market with 30.7% year-over-year growth. Cisco remains the clear market leader and now holds 50.6% of the market, which is an improvement over its 44.3% share in 1Q11 but a decrease from its 54.3% market share in 4Q11.
Polycom's revenue declined 8.9% year over year and 20.0% quarter over quarter in 1Q12. Polycom's market share now stands at 26.3%, down from its 33.1% share in 1Q11 but slightly up from its 26.0% market share in 4Q11.
Lifesize (Logitech) revenue increased 2.3% year over year and 2.6% quarter over quarter in 1Q12 and remains the third largest player in the market.
Vidyo outperformed in 1Q12 with market leading 82% year-over-year and 6.6% quarter-over-quarter growth.
"Despite the 1Q12 performance that was somewhat below expectations, especially in comparison with the results witnessed in the previous three quarters, the enterprise videoconferencing and telepresence market remains one of the fastest growing networking technologies," said Petr Jirovsky, senior research analyst, Worldwide Networking Trackers Research. "The enterprise videoconferencing and telepresence market continues to place high on the list priorities for many CIOs."
The IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview provides total market size and vendors share data in an easy-to-use Excel Pivot Table format. The overall market is further segmented by product type (Immersive Telepresence, Telepresence, Personal Videoconferencing, Video MCU, Other), form factor (End-point, Infrastructure), and screen definition (High Definition, Standard Definition). Measurement for the enterprise videoconferencing and telepresence market is provided in factory revenue, and unit shipments.
For more information about IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview, please contact Kathy Nagamine (firstname.lastname@example.org).
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