Market Insight

REPORT HIGHLIGHTS - Videoconferencing Market Dragged Down by PBX-Based and Dedicated Systems; Immersive Telepresence Shines

March 18, 2016

Matthias Machowinski Matthias Machowinski Directing Analyst, Enterprise Networks and Video
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The IHS Technology Enterprise Telepresence and Video Conferencing Equipment Quarterly Market Tracker tracks dedicated and PBX-based video conferencing and telepresence infrastructure and endpoints, including immersive telepresence, desktops, multipurpose rooms, videophones and software.

Following are highlights from the first quarter (Q1) 2016 edition of the report, which includes data for the fourth quarter (Q4) and full-year 2015.

Analyst Notes

“Demand for video conferencing is stronger than 2015 equipment revenue would suggest. A significant drag on the equipment market last year was the redirection of investments from in-house infrastructure to cloud services, which allows organizations to better balance capacity to video usage.”

- Matthias Machowinski
Senior Research Director, Enterprise Networks and Video

“While IHS anticipates relatively flat equipment revenue over the next five years, there are a number of opportunities for vendors and customers alike. Demand for video endpoints is growing, hardware leasing and cloud services become a viable option for select customers, and improvements in voice and audio quality and advanced collaboration tools continue as powerful differentiators for vendors.”

- Todd Hanson
Senior Analyst, Enterprise Video

Enterprise Video Conferencing Market Highlights

  • The global enterprise video market was down 4 percent in 2015 from 2014, to $3.2 billion, dragged by PBX-based and dedicated systems
  • In the fourth quarter of 2015 (Q4 2015), video conferencing revenue rose 9 percent sequentially due to an upswing in multi-purpose room and immersive telepresence sales, but was down 14 percent on a year-over-year basis
  • Immersive telepresence was the bright spot in 2015, with revenue growing 19 percent from 2014
  • Though multi-purpose room endpoint revenue rose by just over 1 percent in 2015 from the previous year, shipments increased less than 1 percent, suggesting price stabilization
  • In 2015, dedicated endpoint sales were up 3 percent from 2014 as vendors introduced lower-cost offerings
  • All major geographical regions—North America, EMEA and Asia Pacific—were in negative territory for enterprise video revenue on a year-over-year basis in 2015

Enterprise Telepresence Report Synopsis

The IHS quarterly enterprise videoconferencing and telepresence report provides worldwide and regional market size, vendor market share, forecasts through 2020, analysis and trends for telepresence and video conferencing equipment. Vendors tracked include Avaya, Cisco, Huawei, Lifesize, Microsoft, Polycom, ZTE, others.

Geography
Global
Research by Market
Enterprise & IT Mobile & Telecom
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