Worldwide Enterprise Videoconferencing and Telepresence Market Disappoints on Weakness in North America and EMEA, According to IDC

FRAMINGHAM, Mass., August 24, 2012 – Results from the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview showed challenging market conditions in the second quarter of 2012 (2Q12), with videoconferencing revenue declining 10.0% year over year and 6.9% quarter over quarter. The total market revenue of $564 million was the lowest since the seasonally weak first quarter of 2011 and more than 27% below the market record we saw just two quarters ago in 4Q11.

From a market segment perspective, multi-codec immersive telepresence continues to decline rapidly with a 38.4% year-over-year drop, but all other segments were also down in the mid-single-digit range on an annual basis. Regionally, Asia/Pacific significantly outperformed the other regions and grew 11.3% year over year in 2Q12. Europe, Middle East, and Africa (EMEA) decreased 20.7% year over year and North America decreased by 16.4% year over year in 2Q12.

"Several of the video vendors pointed to the currently difficult macro-economic situation, as well as a cutback in spending in key areas such as the public sector, including government and education, as reasons for the weak quarterly results," said Rich Costello , senior analyst, Enterprise Communications Infrastructure, at IDC. "Although these factors are expected to persist and influence results somewhat in the second-half of 2012, interest in video continues to grow among organizations, especially those with good use-case requirements."

Key Vendor Updates:

Cisco's 2Q12 results – a 23.7% year-over-year decline – were worse than the overall market. Cisco remains the market leader but now holds 41.9% of the market, which is noticeably below the 48.7% in 1Q12 and 49.3% in 2Q11.

Polycom's revenue increased a healthy 8.9% over the first quarter, but was still down 4.3% year over year. Polycom's market share now stands at 32.5%, up from the 27.7% in 1Q12 and from the 30.5% in 2Q11.

"Despite the overall weak 2Q12 performance in the worldwide enterprise videoconferencing market, we still see adoption being driven by video integrations with vendors' UC and collaboration portfolios, and with the increasing use of video among small workgroup, desktop, and mobile users," said Petr Jirovsky, senior research analyst, Worldwide Networking Trackers. "Video as a key component of collaboration continues to place high on the list of priorities for many organizations."

The IDC Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview provides total market size and vendors share data in an easy-to-use Excel Pivot Table format. The overall market is further segmented by product type (Immersive Telepresence, Telepresence, Personal Videoconferencing, Video MCU, Other), form factor (End-point, Infrastructure), and screen definition (High Definition, Standard Definition). Measurement for the enterprise videoconferencing and telepresence market is provided in factory revenue, and unit shipments.

For more information about IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview, please contact Kathy Nagamine (

About IDC

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