Videoconferencing growth revealed by IHS

video conferencing market in Q1 2016
Matthias Machowinski, senior research director, enterprise networks and video at IHS Technology, said the shift to the Cloud is displacing videoconferencing infrastructure sales.

Only Cisco and Huawei achieved year-on-year growth in the first quarter of 2016. For Polycom, ZTE and Avaya, Q1 2016 posed challenges.

Video conferencing revenue declined 22 percent quarter-over-quarter to $701 million due to lower seasonal demand.

Videoconferencing revenue is also trending down slightly on a year-over-year basis, primarily due to decreases in infrastructure sales.

Demand for video conferencing endpoints is still growing, but the shift to cloud services is displacing a significant amount of infrastructure equipment revenue.

The dedicated system segment, the backbone of the video conferencing market, declined 6 percent in Q1 2016. Though endpoint demand remains steady, infrastructure sales are plunging as alternative approaches such as embedded, virtual and cloud-based multipoint control units (MCUs) gain acceptance.

PBX-based video offers a cost-effective way to enjoy multimedia communication using infrastructure they already have. PBX-based video is returning to year-over-year growth—primarily due to a pickup in software demand.

Immersive telepresence grew 19 percent year-over-year.

Video conferencing market will have revenue of $3.2 billion by 2020 and a five-year (2015–2020) compound annual growth rate (CAGR) of 0 percent.