Suprising Market Trends in Video

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Suprising Market Trends in Video

 

In a surprise reversal of market trends over the last several quarters, video conferencing revenue showed a deceleration in growth for the first quarter of 2012, according to research firm International Data Corporation (IDC) and its Worldwide Enterprise Videoconferencing and Telepresence Qview.

First quarter revenue growth was 14.4 percent year over year, well below the 23 percent to 25 percent 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 percent 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 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. 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 for 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 vendors saw mixed results over the first quarter:

  • Polycom’s revenue declined 8.9 percent year over year and 20.0 percent quarter over quarter in the first quarter. Polycom’s market share now stands at 26.3 percent, down from its 33.1 percent share in the first quarter of 2011, but slightly up from its 26.0 percent market share in the fourth quarter of last year.
  • LifeSize (Logitech) revenue increased 2.3 percent year over year and 2.6 percent quarter over quarter in the first quarter of 2012, and the company remains the third-largest player in the market.
  • Vidyo outperformed in the first quarter with market-leading 82 percent year-over-year and 6.6 percent 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 for Worldwide Networking Trackers Research. “The enterprise videoconferencing and telepresence market continues to place high on the list priorities for many CIOs.”

2 Comments
  1. business

    Web-based videoconferencing will reach 56.3 percent of total business videoconferencing traffic in 2011. Web-based videoconferencing will grow faster than average business videoconferencing, at a CAGR of 45 percent.

  2. silver account

    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 percent year over year, well below the 23-25 percent 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 percent due to seasonality.

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