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Worldwide Enterprise Videoconferencing and Telepresence Market Sees Mixed Fourth Quarter Equipment Revenue Results, According to IDC

The International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview showed mixed results for the fourth quarter of 2013 (4Q13), with overall videoconferencing equipment revenue increasing 2.8% quarter over quarter, but declining -17.9% year over year. Total worldwide enterprise video equipment market revenue in 4Q13 was approximately $592 million. For the full year 2013, the enterprise videoconferencing market revenue declined -13.1% year over year to reach $2.26 billion.

From a market segment perspective, multi-codec immersive telepresence equipment revenue was down --2.8% quarter over quarter and -26% year over year. Video infrastructure equipment – including MCUs and other video-related infrastructure products – increased 12% quarter over quarter, but declined -13.7% year over year. Room-based video systems were relatively flat at -0.2% quarter over quarter and declined -17.8% year over year. And desktop video systems showed slightly positive 1.1% revenue growth quarter over quarter, but declined -25.2% year over year in 4Q13.

Regionally, Asia/Pacific (8.1%), Europe, Middle East and Africa (EMEA_ (2.3%) and North America (1.4%) all showed positive quarter-over-quarter revenue growth in 4Q13, while Central and Latin America (CALA) (-13.6%) revenue declined quarter over quarter. In addition, all the major regions showed year-over-year declines for 4Q13: North America (-22.4%), EMEA (-20.3%), CALA (-11.1%) and Asia/Pacific (-10.1%).

"Interest in video and collaboration technology and applications helped the quarterly revenue numbers in three out of four major regions except CALA. But the lingering macroeconomic situation – including softness in emerging markets, the recession in Europe, and the sequestration in the U.S. (i.e. budget cuts) – produced some cautionary IT spending that impacted year-over-year video equipment revenue growth across all the regions in 4Q 2013," said Rich Costello , Senior Analyst, Enterprise Communications Infrastructure at IDC. "In addition, and most significantly, we are continuing to see the impact of lower-cost systems, software-centric products, and cloud-based service offerings on the enterprise video equipment market."

Key Vendor Highlights

  • Cisco's 4Q13 results showed a 2.1% quarter-over-quarter revenue increase, but a -20.8% year-over-year decline in video equipment revenue. Cisco remains the leader in enterprise videoconferencing equipment with a 44.3% share of the worldwide market.
  • Polycom's revenue increased 7% quarter-over-quarter in 4Q13, but was down -13.4% year-over-year in the fourth quarter. Polycom ranks second in enterprise videoconferencing equipment with a 24.9% share of the worldwide market.
  • Huawei's 10.3% quarter-over-quarter revenue increase and 0.8% year-over-year revenue increase in 4Q13 were good for a third-ranked 10.8% share of the worldwide enterprise videoconferencing market.

"Video as a key component of collaboration continues to place high on the list of priorities for many organizations," said Petr Jirovský, Research Manager, Worldwide Networking Trackers. "IDC believes that among the challenges customers are currently trying to work through are a market transition and 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."

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, Telepresence (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.

For more information about IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview, please contact Kathy Nagamine (knagamine@idc.com).

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. In 2014, IDC celebrates its 50th anniversary of providing strategic insights to help clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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