Worldwide enterprise videoconferencing and telepresence market declines in 2Q 2013

Worldwide enterprise videoconferencing equipment revenue in 2Q13 declined 10.7 percent year over year and 5.5 percent quarter over quarter, according to IDC Worldwide Enterprise Videoconferencing and Telepresence Qview.

Total market revenue was just over $532 million, which represents the second consecutive quarterly drop and is 34.3 percent below the market record established in the fourth quarter of 2011.

Asia Pacific had the largest year-over-year decline in 2Q13 (14.1 percent) while Latin America recorded 11.3 percent fall. Both EMEA and North America showed a decline of 8.8 percent year over year.

While North America (5.5 percent) and Asia/Pacific (1.9 percent) both had positive quarter-over-quarter revenue growth, EMEA and Latin America revenue declined more than 20 percent quarter over quarter in 2Q13.

Among the different segments in the market, multi-codec immersive telepresence continued its decline with a 32 percent year-over-year decrease.

Video infrastructure equipment, including hardware MCUs, declined 20.4 percent year over year, and room-based video systems decreased 5 percent year over year. On a brighter note, desktop video systems showed positive 7.7 percent revenue growth year over year in 2Q13.

video conference

Among key vendors that reported decline in relevant market revenues, Cisco’s 2Q13 results showed a 7.5 percent year-over-year decline and a 10.6 percent quarter-over-quarter decline in video equipment revenue.

Cisco continues to lead enterprise videoconferencing equipment with a 41 percent share of the worldwide market.

Polycom’s revenue increased 4.2 percent quarter over quarter in 2Q13, but was down 14.8 percent year over year. Polycom ranks second in enterprise videoconferencing equipment with a 29.2 percent share of the worldwide market.

Huawei’s 7.1 percent quarter-over-quarter revenue increase in 2Q13 was good for a 7.6 percent share of the worldwide enterprise videoconferencing market.

The macroeconomic situation, including the recession in Europe and sequestration (budget cuts) in the U.S., produced a cautionary IT spending environment that carried over into the first half of 2013 with the spending outlook for the second half of the year not much more promising, said Rich Costello, senior analyst, Enterprise Communications Infrastructure at IDC.

“In addition, and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-based products and offerings on the enterprise video equipment market.”

Also read: Hosted conferencing services in Asia Pacific to reach $1.4 billion in 2018: Frost & Sullivan

Despite the weak 2Q13 results, there is growing interest in videoconferencing being driven by integrations with vendors’ unified communications and collaboration portfolios, and the proliferation of video among desktop and mobile users.

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