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IDC: Declines for Videoconferencing Hardware Market

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IDC reports the global enterprise videoconferencing and telepresence market shows further declines during Q1 2014, with equipment revenues dropping by -20% Q-o-Q and -15.9% Y-o-Y to reach $473.5 million.

VideoconferencingGlobal unit sales also show declines of -13.3% Q-o-Q and -6.2% Y-o-Y. When it comes to our side of the globe EMEA sees Q1 2014 declines of -19.8% Y-o-Y.

On a market segment basis multi-codec immersive telepresence revenues are down by -25.2% Q-o-Q and -33.5% Y-o-Y, with unit sales dropping by -34.7% Q-o-Q and -25.9% Y-o-Y. Room-based video system revenues are down -13.9% Q-o-Q and -10.1% Y-o-Y, with units sales down by -13.7% Q-o-Q and just -1% Y-o-Y.

Video infrastructure equipment (including MCUs and other video-related infrastructure products) drop by -29.2% Q-o-Q and -13% Y-o-Y.

"We continue to see the impact of delayed customer buying decisions, lower-cost systems, more software-centric products, and competitive cloud-based video service offerings on the worldwide enterprise video equipment market," IDC says. "The weak vendor results are also indicative of the ongoing transition from a primarily hardware-based reporting model to one impacted by the interest in and growth of video subscription services. On the bright side, most or all of these vendors are now offering cloud-based video alternatives to customers too-– in addition to their own lower cost, premises-based systems."

When it comes to vendors market leader Cisco shows video equipment revenue declines of -27.8% Q-o-Q and -22.4% Y-o-Y even as it controls 40.1% share of the global market. Polycom follows with 28.9% share and revenue declines reaching -7.3% Q-o-Q and -8.4% Y-o-Y, while Huawei ranks third with 7.8% share and revenues dropping by -42% Q-o-Q/-1.9% Y-o-Y.

"As dismal as these quarterly numbers are, video as a key component of collaboration continues to place high on the list of priorities for many organizations," the analyst concludes. "IDC believes that among the challenges customers are currently trying to work through are a market transition and determining exactly what, 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."

Go IDC WW Enterprise Videoconferencing and Telepresence Equipment QView