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Enterprise Videoconferencing and Telepresence Equipment Market to Hit $5.4 Billion by 2015

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October 20, 2011

Enterprise Videoconferencing and Telepresence Equipment Market to Hit $5.4 Billion by 2015

By David Sims
TMCnet Contributing Editor


Hold on to your seats, it’s going to get interesting: Market research firm Infonetics (News - Alert) Research has released its second quarter (2Q11) Enterprise Telepresence (News - Alert) and Video Conferencing report, looking at such factors as market size, vendor market share, and analysis for PBX-based video phones and software.

It also looks at the dedicated videoconference infrastructure and endpoints, including immersive telepresence and software, and finds that things are going well and should stay that way: Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research (News - Alert), said that “growth will stay in double-digit territory through at least 2015.”

Machowinski attributed the optimism to “demographic and communication trends favoring video, increasing acceptance of video among users, and specific use cases like tele-learning and tele-medicine.”

He noted that for the first six months of 2011, enterprise telepresence and videoconferencing equipment revenue “is up 24 percent year-over-year, and we expect strong double-digit growth in 2011 over 2010.”

Champagne all around, please.

Breaking the numbers down further gives more good news. Infonetics found that the global enterprise videoconferencing and telepresence equipment market jumped 21 percent to $683 million between the first and second quarters of 2011, which represents a record high for quarterly revenue year-over-year (2Q10 to 2Q11).

And the top vendor in the market, Cisco (News - Alert), sequentially increased its videoconferencing and telepresence system revenue 33 percent, and now holds over half the global market share.

Where is the growth coming from, exactly? According to the report, dedicated multi-purpose room video systems make up over half the enterprise video equipment market now, and “will continue to be the biggest revenue-generator among enterprise video.”

But do watch out for videophones, the fastest-growing segment of the market, albeit the smallest. Odds are it’ll drop the “smallest” designation pretty soon.

David Sims is a contributing editor for TMCnet. To read more of David’s articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Jennifer Russell

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