Featured Article from Conferencing

Enterprise Videoconferencing and Telepresence Market Continues to Decline: Report

June 04, 2012

The global market for enterprise videoconferencing and telepresence is shrinking gradually, as advancing technology has given customers a range of new video deployment options, according to latest reports from IDC.


Enterprise videoconferencing revenue grew 14.4 percent year-over-year, but it is well below the 23-25 percent year-over-year growth witnessed in the last three consecutive quarters.

Compared to the fourth quarter of 2011, the enterprise videoconferencing market declined 21 percent.

For the immersive telepresence segment, this is the fifth consecutive quarter of year-over-year decline.

"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 at IDC.

Given its report, it seems the expensive conference-room systems are losing traction in the face of cost-effective software offerings from smaller vendors that allow users to collaborate via different devices such as laptops and smartphones.

That’s why IDC says it expects the video market to grow in the years ahead by unified communications and collaboration portfolios, and with increasing strength among small workgroup, desktop and mobile collaboration users.

From a market segment perspective, the relative strength in the single-codec telepresence and the personal videoconferencing segments – which grew 28.5 percent and 52.6 percent 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 percent and 2.8 percent, respectively.

Among the market players, Cisco is the clear leader in the enterprise video market, with well over 50 percent of the market share. Cisco had held just over 44 percent share in first quarter of last year.

Polycom is close second with 26 percent market share. Polycom’s revenue, however, declined 8.9 percent year-over-year and 20.0 percent quarter-over-quarter in Q1 2012.

“Lifesize (Logitech) revenue increased 2.3 percent year-over-year and 2.6-percent quarter-over-quarter in Q1 2012, and remains the third largest player in the market,” IDC stated. “Vidyo outperformed in Q1 2012 with a market leading 82 percent year-over-year, and 6.6 percent quarter-over-quarter growth.”

Despite the decline, the enterprise videoconferencing and telepresence market remains one of the fastest growing networking technologies, according to Petr Jirovsky, senior research analyst at Worldwide Networking Trackers Research.

"The enterprise videoconferencing and telepresence market continues to place high on the list priorities for many CIOs," Petr added.




Edited by Braden Becker

Article comments powered by Disqus
Newsletter Sign Up
Become a Reseller Partner

Featured White Paper

7 Tips for Great Conferencing Spaces

If you're faced with choosing and implementing your organization's tele- or video-conferencing solution you'll find the seven crucial conferencing tips contained in this paper invaluable.

Featured Webinar

Product Update

Revolabs has released two new products! Get the full scoop on the Yamaha YVC-300 USB & Bluetooth® Portable Conference Phone and Revolabs Executive Elite™ 2-Channel Wireless Microphone System along with other exciting news by joining the upcoming webinar.

Conferencing Products


The Sound Choice for Conferencing