Video Conferencing Market Gearing up for Comeback

  • Infonetics Research
BOSTON - Sales of PBX-based video endpoint, which more than doubled in 2012 bolstered the video conferencing in 2012, according to findings from market research firm Infonetics Research from its 4th quarter (4Q12) and year-end Enterprise Telepresence and Video Conferencing Equipment report, which tracks dedicated and PBX-based video conferencing and telepresence infrastructure and endpoints (desktop, immersive telepresence, videophones, multipurpose rooms, and software).

“After a rotten early 2012, the video conferencing market appears to be turning the corner. On the heels of double-digit growth the previous quarter, revenue was up again in the 4th quarter, keeping full year revenue essentially flat,” reports Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. “Helping the market stay afloat were sales of PBX-based video endpoints, which more than doubled in 2012. PBX-based video is proving popular because it offers organizations a cost-effective way to enjoy multimedia communication using infrastructure they already have.”

Machowinski adds, “We view 2012 as an aberration, and see long-term interest by enterprises to deploy video communications, helping the market to sustain a 6 percent CAGR through 2017.”

Telepresence and Video Conference Market Hightlights

  • Globally, the enterprise video conferencing and telepresence market grew 10 percent sequentially in 4Q12, to $822 million

  • In 2012, endpoint shipments rose 47 percent, driven by the growth of PBX-based video

  • Revenue for nearly all dedicated videoconferencing systems declined in 2012, with some segments falling off significantly; only multipoint control units (MCUs) held steady

  • Asia Pacific was the only region to notch positive revenue growth in 2012, up 11 percent over 2011

  • Cisco and Polycom continue to lead the dedicated videoconferencing equipment market

  • On a rollercoaster ride for the past two years, Infonetics expects the immersive telepresence segment to bounce back

  • Factors driving the future growth of enterprise video include advances in and proliferation of technology (e.g., high-definition video, bandwidth); demographic and communication trends; and specific use cases such as telelearning and telemedicine


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