Market Shifts Keep Video Conferencing Revenue Growth Slow

The video conferencing and telepresence market was worth $725 million in the second quarter, up 2 percent from a year ago, but up 5 percent over the previous quarter.

That’s according to Infonetics, which found that endpoint shipments grew by 66 percent (4.4 million) compared to the second quarter of last year thanks to growth in software sales.

The dedicated system segment struggled again last quarter due to pricing pressures and a shift to lower-cost endpoints; however, the rate of decline is stabilizing. PBX-based video conferencing continues to drive all market growth, up 29 percent year-over-year in 2Q14.

EMEA and Asia were the top-performing regions for video-conferencing equipment in the quarter.

“Demand for videoconferencing capabilities remains strong as evidenced by the growth in endpoint shipments, but there are several shifts in the market that keep down revenue growth, from high-cost to low-cost hardware endpoints, from hardware to software, and from infrastructure to services,” said Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

Infonetics expects the worldwide enterprise telepresence and video conferencing market to grow to $3.3 billion in 2018.

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