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IDC Reports Strong Growth of Videoconferencing Market in 2011

March 07, 2012

International Data Corporation or IDC (News - Alert) has released the Worldwide Enterprise Videoconferencing and Telepresence (News - Alert) Qview report for the fourth quarter of 2011(4Q11). During the fourth quarter of 2011, the videoconferencing market income has reported strong growth, touching $807.9 million. As compared to the revenue in the fourth quarter of 2010, this represents an increase of 19 percent. Similarly, the year over year revenue for videoconferencing market has increased by 24.6 percent.

The revenue of the single-codec telepresence sector of the market, which has a market share of 55 percent, has reached $444.1 million, a 38.7 percent increase as compared to the last year. The full year 2010 had reported a 16.6 percent increase in revenue as compared to the full year 2009. As compared to the full year 2010, the whole enterprise videoconferencing market revenue has now risen by 20.5 percent, and reached $2.7 billion, thereby indicating the rapid acceptance of video in the enterprise.

In a release, Rich Costello, senior analyst for Enterprise Communications (News - Alert) Infrastructure at IDC said, “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. 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.”

The fourth quarter of 2011 reported an overall increase of 22.5 percent for video infrastructure equipment, as compared to 2010, by reaching $215.1 million. The full year 2011 however reported a drop in revenue for immersive telepresence, when it reached $314.8 million, representing a 21.6 percent slash over 2010.

Petr Jirovsky, senior research analyst at Worldwide Networking Trackers Research said, “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. The enterprise videoconferencing and telepresence market will continue to be one of the fastest growing networking markets for the foreseeable future.”

Edited by Jennifer Russell

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