$22bn spend for VC and TP by 2016, Cisco retains number one spot

The video communications market will go from strength to strength as analysts predict that $22 billion will be spent on videoconferencing and telepresence worldwide over the next five years.

Market research firm, Infonetics Research revealed, in excerpts from its 2011 fourth quarter Enterprise Telepresence and Video Conferencing Equipment report, that Cisco was still leading the market with a revenue jump of 25% in the final quarter of 2011, giving the networks giant a 52.5% market share.

The report analyses markets and vendors by region for dedicated and PBX-based video conferencing and telepresence infrastructure and endpoints, including videophones, software and video rooms.

"Sales of telepresence and videoconferencing equipment surged in the past two years, with growth accelerating in 2011 as video took off on enterprise IP PBX systems," said says Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research. "The video conferencing market is being fuelled by a confluence of factors, including the proliferation of video-capable equipment, demographic and communication trends that favour video, industry use cases like tele-learning and tele-medicine, and most importantly, customer demand."

Infonetics reported that global enterprise video conferencing and telepresence market jumped 15% to $882 million between the third and fourth quarters of 2011, setting a record high for quarterly revenue.

It added that sales of videoconferencing and telepresence equipment were up 34% to $2.99 billion in 2011. PBX-based systems were pinpointed as enjoying the strongest performance for the year, growing 80%.

Dedicated multi-purpose room video systems made up over half the enterprise videoconferencing equipment market in the 2011 report. It also noted that the Caribbean and Latin America (CALA) saw sales nearly double in 2011.

Vendors tracked within the report included Aastra, Avaya, Cisco (Tandberg), Grandstream, Huawei, Kedacom, LifeSize, Magor, Microsoft, Mitel, Polycom, Radvision, ShoreTel, Sony, Teliris, Vidyo and ZTE.