Worldwide Enterprise Videoconferencing and Telepresence Market Disappoints on Continued Weakness in North America and EMEA, According to IDC

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29 Nov 2012

Worldwide Enterprise Videoconferencing and Telepresence Market Declined 4.8% Year Over Year in Third Quarter of 2012

FRAMINGHAM, Mass., November 29, 2012 – Results from the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview showed continued challenging market conditions in the third quarter of 2012 (3Q12), with videoconferencing revenue declining 4.8% year over year even though it increased 7.1% quarter over quarter. The enterprise videoconferencing and telepresence market is also showing significant differences in the performance of major geographies. The continued strong market results in Latin America and Asia/Pacific, which grew 13.7% and 9.7% year over year respectively, were not enough to fully offset the 11.5% year-over-year decline in North America and the 10.8% year-over-year decrease in Europe, Middle East, and Africa (EMEA) in 3Q12.

From a market segment perspective, multi-codec immersive telepresence continues to decline rapidly with a 35.8% year-over-year drop. Other videoconferencing components (gateways, firewalls, etc.) declined 26.8% year over year. On the other hand, the single-codec videoconferencing segment increased 0.4%, personal videoconferencing grew 8,7%, and video MCUs were up 5.0% year over year in 3Q12.

"As expected, a down year for the overall enterprise videoconferencing and telepresence market continued in 3Q12. This is mostly due to uncertainty stemming from macroeconomic concerns, and a continuing decline in high-end immersive systems," said Rich Costello , Senior Analyst, Enterprise Communications Infrastructure. "We also feel that customers are considering more strategic approaches to deploying video technology and applications, leading to longer decision cycles."

Key Vendor Updates

Cisco's 3Q12 enterprise videoconferencing and telepresence revenue increased 17.9% sequentially over the relatively weak 2Q12, but was still down 14.7% on an annual basis. Cisco market share now stands at 43.3%, up from 39.3% in 2Q12 but down from 48.3% in 3Q11.
Polycom's revenue declined 11.8% quarter over quarter and 15.2% year over year in 3Q12, but it remains the clear number two vendor in the market with a 25.0% share.
"Despite the overall weak 3Q12 performance in the worldwide enterprise videoconferencing and telepresence market, we still see adoption being driven by video integrations with vendors' UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users," said Petr Jirovsky, Senior Research Analyst, Worldwide Networking Trackers Research. "Video as a key component of collaboration continues to place high on the list of priorities for many organizations and we anticipate a return to positive market growth in 2013."

The IDC Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview provides total market size and vendor 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 (knagamine@idc.com).

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 48 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.