Results from IDC’s latest Worldwide Enterprise Videoconferencing and Telepresence Qview showed continuing market challenges in the second quarter of 2013, with overall videoconferencing equipment revenue declining -10,7% year-over-year and -5,5% quarter-over-quarter.
The total market revenue of just over $532-million represents the second consecutive quarterly drop and is 34,3% below the market record established in the fourth quarter of 2011.
From a market segment perspective, multi-codec immersive telepresence continued its decline with a -32% year-over-year decrease. Video infrastructure equipment, including hardware MCUs, declined -20,4% year-over-year, and room-based video systems decreased -5% year-over-year. On a brighter note, desktop video systems showed positive 7,7% revenue growth year-over-year in 2Q13.
Regionally, Asia/Pacific (-14,1%) and Latin America (-11,3%) showed the largest year-over-year declines in 2Q13, with both EMEA and North America down -8,8% year-over-year. While North America (5,5%) and Asia/Pacific (1,9%) both had positive quarter-over-quarter revenue growth, EMEA and Latin America revenue declined more than 20% quarter-over-quarter in 2Q13.
“The macroeconomic situation, including the recession in Europe and sequestration (i.e. budget cuts) in the US., 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,” says 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.”
Key vendor highlights include:
* Cisco’s 2Q13 results showed a -7,5% year-over-year decline and a -10,6% quarter-over-quarter decline in video equipment revenue. Cisco remains the leader in enterprise videoconferencing equipment with a 41% share of the worldwide market.
* Polycom’s revenue increased 4,2% quarter-over-quarter in 2Q13, but was down -14,8% year-over-year. Polycom ranks second in enterprise videoconferencing equipment with a 29,2% share of the worldwide market.
* Huawei’s 7,1% quarter-over-quarter revenue increase in 2Q13 was good for a 7,6% share of the worldwide enterprise videoconferencing market.
“Despite the overall weak 2Q13 results in the worldwide enterprise videoconferencing equipment market, we are still seeing interest in videoconferencing being driven by integrations with vendors’ unified communications and collaboration portfolios, and the proliferation of video among desktop and mobile users,” says Petr Jirovsky, senior research analyst, Worldwide Networking Trackers Research at IDC.
“Video as a key component of collaboration continues to place high on the list of priorities for many organisations.”