Demand for Video Conferencing Hardware & Software

Demand for videoconferencing equipment increased significantly, with worldwide sales up 15.8 per cent in 2014. Researchers from IDC reported that year-on-year sales in the fourth quarter increased 4 per cent although market value for the full year was down 6.8 per cent. While room-based video conferencing system revenue increased 11.8 per cent in Q4 and 12.6 per cent year-on-year, multi-coded telepresence equipment revenue declined 6.9 per cent quarter-over-quarter and was down 19.4 per cent year-on-year. An especially significant increase, 64.8 per cent in Q4 and 25.4 per cent year-on-year, was registered for personal videoconferencing systems revenue (including executive desktop systems). Video infrastructure equipment revenue ($136 million) – including MCUs and other video-related infrastructure – increased 19.9 per cent in Q4 but declined 14.9 per cent year-on-year. Still, Rich Costello, senior analyst within IDC’s Enterprise Communications Infrastructure service underlines that “Although the worldwide videoconferencing equipment market enjoyed positive quarter-over-quarter and year-over-year revenue growth in some market segments in Q4, overall the market experienced its third consecutive year of declining revenue in the full-year 2014”. According to Rich Costello, this is the result of the on-going market transition from a primarily hardware-based technology to one impacted by the growing interest in software-based solutions and video subscription services.

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