There are multiple elements in the Unified Communications (UC) market segment of networking, with video conferencing technology representing a significant share. According to the new research report from Infonetics, however, the global enterprise video conferencing and telepresence market isn't growing at the same rate it once was.
Infonetics' third quarter 2014 (3Q14) Enterprise Telepresence and Video Conferencing Equipment report shows flat year-over-year revenue growth for the market segment. Infonetics reported that global enterprise video conferencing and telepresence revenue came in at $838 million for the third quarter of 2014.
While year-over-year growth was flat, the 3Q14 figure represents an 11 percent gain over the second quarter of 2014. Infonetics notes that there usually is a pickup in enterprise telepresence and video conferencing equipment during the third quarter over the second quarter in any given year.
"Flat sales of videoconferencing equipment are masking several underlying market trends,” Matthias Machowinski, directing analyst for enterprise networks and video at Infonetics Research, said in a statement.
Among the trends noticed by Infonetics is the fact that revenue growth is slowing for PBX-based systems as well as dedicated system installations. On the other hand, there is room for optimism in the videophone endpoint segment, the fastest-growing segment of the hardware endpoint market, but even there, Infonetics noted that growth is slowing down, with slower unit shipments in 3Q14.
"For room-based systems, preferences continue to shift away from high-priced telepresence systems to multipurpose room systems," Machowinski said. "For personal videoconferencing, hardware sales are peaking, and we’re witnessing a move from hardware to software."
Machowinski added that there has been a rise in cloud multipoint conferencing unit services adoption, which has led to a decline in infrastructure sales.
In terms of vendors, Cisco continues to lead the market in terms of revenue, followed by Polycom in the number two spot. Rounding out the top five vendors are ZTE, Huawei and Avaya.
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist.