Video conferencing market records growth in revenue

Video conferencing market records growth in revenue

Overall revenue in the video conferencing equipment market has recorded growth for the second quarter of 2015, figures from the International Data Corporation (IDC) have shown.

Figures have shown a 4.8 per cent quarter-over-quarter and 5.1 per cent year-over-year increase for video conferencing hardware revenue, although the enterprise video infrastructure equipment once again recorded a decline due to the increasing availability of video cloud service offerings.

However, the total worldwide enterprise video equipment market revenue during the second quarter surpassed $507 million (£324.32 million), up from $484 million recorded in the previous quarter.

That was mainly drive by the total number of video conferencing units sold in the second quarter by 7.4 per cent quarter-over-quarter and 21 per cent year-over-year.   

When broken up, the findings showed a quarter-on-quarter increase of 70.3 per cent and a year-over-year increase of 8.0 per cent, while unit shipments were also up 67.7 per cent sequentially and 14.8 per cent year over year.

There was a quarter-over-quarter increase of 36 per cent for personal video conferencing systems revenue. Year-over-year gains were 80.8 per cent while unit shipments were up by  up 26.0 per cent sequentially and 58.8 per cent on an annual basis.

Rich Costello, Senior Analyst, Enterprise Communications Infrastructure, at IDC said that despite weakness in the Latin American market, there was plenty of room for positivity in the latest results.

He said: "Some much-needed good news for the enterprise videoconferencing market – revenue and video endpoint shipments were up in all major regions in the second quarter, except Latin America.

"A surprising 2Q15 highlight had multi-codec telepresence systems up in both revenue and unit shipments, as the availability of some new high-end systems positively impacted the market. This interrupted a downward trend for these high-end video solutions."