14.01.15

Hardware hit as growth slows in VC market

Videoconferencing and telepresence revenue showed flat year on year growth in 2014, according to technology market research firm Infonetics Research.

The report, which looked at the market for dedicated and PBX-based videoconferencing and telepresence infrastructure and endpoints, showed that sales picked up in the third quarter to deliver 11% growth and hit $838 million (over €700 million).

Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, said: “Flat sales of videoconferencing equipment are masking several underlying market trends.

“For room-based systems, preferences continue to shift away from high-priced telepresence systems to multipurpose room systems. For personal videoconferencing, hardware sales are peaking, and we’re witnessing a move from hardware to software.

“Overlaying all of this is the decline in infrastructure sales, which are taking a hit due to the rise of cloud multipoint conferencing unit services adoption.”

Revenue for dedicated systems is declining and growth in PBX-based systems is decelerating. Videophones have been the fastest-growing segment of the hardware endpoint market, but even here growth is slowing down, with unit shipments flat on a year-over-year basis in the third quarter of 2014.

Asia Pacific represents the top-performing region for videoconferencing equipment in 2014, due to demand from emerging economies.