Worldwide Enterprise Videoconferencing Equipment Market Shows Positive Results

International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Equipment Qview showed positive results in the fourth quarter of 2015 (4Q15), with overall videoconferencing equipment revenue increasing 22.7% quarter over quarter and 2.4% year over year.

Market highlights include:
Total worldwide enterprise video equipment market revenue in 4Q15 was $627.5 million, up from $612 million in 4Q14.

Total number of videoconferencing units sold in 4Q15 increased 16.3% quarter over quarter, but was basically flat (-0.2%) year over year.

For the full year 2015, revenue increased slightly – up 1.5% versus 2014 – breaking a streak of three consecutive annual revenue declines for this market.

From a market segment perspective in 4Q15:
Multi-codec telepresence equipment revenue ($42.9 million) increased 29.2% quarter over quarter and 20.6% year over year.

Room-based video system revenue ($424.8 million) increased 22% quarter over quarter and 10.5% year over year.

Personal videoconferencing systems revenue ($45.4 million), including executive desktop systems, increased 7.5% quarter over quarter, but declined -20.6% year overyear.

Video infrastructure equipment revenue ($114.3 million), including MCUs and other video-related infrastructure, increased 30.3% quarter over quarter, but declined -15.6% year over year.

Regionally in 4Q15, North America (U.S. and Canada) revenue increased 21.5% quarter over quarter and 4.8% year over year; Latin America revenue increased 38.2% quarter over quarter, but declined -32.2% year over year. In Europe, the Middle East and Africa (EMEA), revenue increased 28.2% quarter over quarter and 2.0% year over year; while in Asia/Pacific revenue increased 17.6% quarter over quarter and 7.8% year over year.

"Some good news for the worldwide enterprise videoconferencing equipment market. It enjoyed positive growth in both quarter-over-quarter and year-over-year revenue numbers in 4Q15. In addition, revenue was slightly positive for 2015, stemming the tide of three consecutive years of annual revenue declines," said Rich Costello, Senior Analyst, Enterprise Communications Infrastructure, at IDC.

Key Vendor Updates:
Cisco's 4Q15 results showed 21.1% quarter over quarter and 12.3% year over year revenue increases. Cisco remained the leader in worldwide enterprise videoconferencing equipment with a 45.3% share of the worldwide market, on par with its 45.9% share in 3Q15.

Polycom's revenue increased 3.4% quarter over quarter, but decreased -17.3% year over year in 4Q15. Polycom ranked second in enterprise videoconferencing equipment with a 19.2% share of the worldwide market, down from 22.8% in 3Q15.

Huawei's revenue increased 64.9% quarter over quarter and 6.6% year over year in 4Q15. Huawei ranked third with a 16.6% share of the worldwide enterprise videoconferencing market, up from 12.3% in 3Q15.

"IDC survey adoption data indicates that video continues to be a key component of collaboration and places high on the list of priorities for many organizations," said Petr Jirovsky, Research Manager, Worldwide Networking Trackers. "IDC believes that among the challenges customers are currently working through are determining exactly when and how to provision their video deployments as more software-centric and cloud-based service offerings become part of the enterprise video market landscape."

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, Videoconferencing (Room-based), Personal Videoconferencing, Video MCU and Other]; form factor (Endpoint, Infrastructure); and screen definition (High Definition, Standard Definition). Measurement for the enterprise videoconferencing and telepresence market is provided in factory revenue, and unit shipments.