Video Conferencing Equipment Market Up, But Down

Video conferencing equipment revenue was up 8.2 percent in the third quarter compared to the previous three months, but was still down 9.7 percent year-over-year.

So says International Data Corporation (IDC) in its latest Worldwide Enterprise Videoconferencing and Telepresence QView report. Total worldwide enterprise video equipment market revenue in the third quarter was approximately $576 million.

By segment, multi-codec immersive telepresence equipment revenue was up 13.1 percent sequentially but was still down 16.3 percent year-over-year. Video infrastructure equipment was similar, increasing 13.7 sequentially but falling 16.7 percent year-over-year.

By region, Latin America, EMEA and North America all showed positive quarterly growth with increases of 41.8, 22.6, and 3.9 percent, respectively. Meanwhile, Asia/Pacific had a quarterly drop of 3.9 percent. Asia/Pacific and North America both showed the largest year-over-year declines in the third quarter with drops of 13.7 percent and 18.2 percent, respectively. On the flip side, EMEA and Latin America showed year-over-year growth.

“Interest in video and collaboration technology and applications helped the quarterly revenue numbers. But the lingering macroeconomic situation including some 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 has impacted year-over-year video equipment revenue growth so far in 2013,” 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-centric products and offerings on the enterprise video market.”

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