Worldwide Enterprise Videoconferencing and Telepresence Market Reaches $2.7 Billion in 2011, According to IDC

Results from the International Data Corporation (IDC) Worldwide Enterprise Videoconferencing and Telepresence Qview showed a strong fourth quarter of 2011 (4Q11), with videoconferencing revenue growing 19.0% quarter over quarter and 24.6% year over year to reach $807.9 million. Specifically, the single-codec telepresence segment of the market grew 38.7% year over year to $444.1 million and now accounts for 55.0% of the total market.

For the full year 2011, total enterprise videoconferencing market revenue reached $2.7 billion, an increase of 20.5% over the full year 2010. This compares favorably versus the 16.6% growth we saw in 2010 over 2009, further pointing to an accelerated adoption of video in the enterprise.

"Growth has been spurred on by more well-defined video use cases among organizations across a range of vertical market segments, including healthcare, higher education, financial services, legal, law enforcement, manufacturing, and retail," said Rich Costello, senior analyst, Enterprise Communications Infrastructure, at IDC. "We also expect growth over the next several years to be bolstered by the impact of video integrated with vendors' unified communications and collaboration portfolios, and increasing video usage among small workgroups, desktop users, and mobile device users."

Segment Highlights:

• Video infrastructure equipment (MCUs, gateways, video network servers and appliances, etc.) grew to $215.1 million in 4Q11, up 18.4% quarter over quarter and 18.8% year over year, to finish the full year 2011 at $716.3 million, a 22.5% improvement over 2010.
• Immersive telepresence revenue for the full year 2011 reached over $314.8 million in 2011, a 21.6% decrease over 2010, evidence, we believe, of the continuing trend of video pushing down market in the enterprise.

In addition to the segment highlights above, a pie chart showing the 4Q11 market shares of the worldwide enterprise videoconferencing and telepresence market by product type is available at IDC.com. The chart is designed to be easily embedded into online news articles and social media. Instructions on how to embed the graphic can be found by viewing this press release on IDC.com.

"There is little doubt about the success videoconferencing and telepresence have had over the past few years, fueled by strong revenue and shipment growth rates and the increasing popularity of video among enterprises," said Petr Jirovsky, senior research analyst, Worldwide Networking Trackers Research. "The enterprise videoconferencing and telepresence market will continue to be one of the fastest growing networking markets for the foreseeable future."

Key Vendor Highlights:

• Cisco 4Q11 results beat the overall market with its 35.0% year-over-year growth. Cisco remains the clear market leader and now holds 54.3% of the market, which is an improvement over the 51.7% in 3Q11 and 50.2% in 4Q10. Cisco's full year 2011 revenue increased 48.7% over the same period in 2010.
• Polycom's revenue increased 15.2% year over year in 4Q11, which meant that Polycom recorded 20.8% annual growth for the full year 2011.

IDC's Worldwide Quarterly Enterprise Videoconferencing and Telepresence Qview provides total market size and vendor 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 (knagamine@idc.com).

About IDC

International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community to make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. For more than 47 years, IDC has provided strategic insights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com.

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