2014/09/22 Shift to software and services in enterprise videoconferencing market tamps revenue growth

Boston, MASSACHUSETTS, September 18, 2014—Market research firm Infonetics Research released excerpts from its 2nd quarter 2014 (2Q14) Enterprise Telepresence and Video Conferencing Equipment report, which tracks dedicated and PBX-based videoconferencing and telepresence infrastructure and endpoints.

“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,” notes Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research.

• The global enterprise video conferencing and telepresence market totaled $752 million in 2Q14, up 5% sequentially, and up 2% from the year-ago quarter
• Endpoint shipments increased 66% in 2Q14 from 2Q13, to 4.4 million, owing to growth in software sales
• The dedicated system segment struggled again in 2Q14 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% year-over-year in 2Q14
• EMEA and Asia are the top-performing regions for videoconferencing equipment in 2Q14
• Infonetics expects the worldwide enterprise telepresence and video conferencing market to grow to $3.3 billion in 2018