Global Video Conferencing Endpoint market witnesses 2% revenue growth and 13% volume growth in 2017

MZA (www.mzaconsultants.com) has released its latest Video Conferencing Endpoints market analysis, showing that the overall value of the market in 2017 grew by 2% in US dollar terms against 2016.  The Video Conferencing Endpoints volume is a component of MZA’s wider UC Applications Competitive Environment 2018 publication which also provides granular analysis on vendor and market performance for Messaging & Clients (voicemail, unified messaging, enterprise instant messaging and desktop/mobile UC clients) and Collaboration Solutions (conferencing services and team collaboration solutions) by region and key Western European country.

The video conferencing endpoints market was driven by the increasingly pervasive nature of video conferencing, with more users accessing video conferences from a wider range of locations through an increasing variety of endpoints.  The revenue derived from sales of video conferencing endpoints globally reached US$ 2.14 billion in 2017, with revenue growth inhibited by price pressure in many markets, as well as an on-going shift in the product mix away from larger, more expensive endpoints towards smaller, more affordable solutions.

 

MZA’s analysis of the video conferencing endpoints market is segmented into executive desktop endpoints (all-in-one systems with an integrated camera, microphone and display), room system endpoints (single-codec endpoint that might be all-in-one or modular, often excluding a display) and multi-codec endpoints (large, high-quality immersive endpoints typically with multiple screens and embedded codecs often with custom furniture).

As has been seen in recent years, the volume of endpoints continued to increase in 2017, with double-digit growth in the volume of endpoints registered in 2017.  The market as a whole is being driven by a desire from businesses to democratise video usage, moving away from just the boardroom experience and adding video to smaller meeting rooms, collaborative workspaces and personal spaces.  This shift is happening faster in some regions than others, with cultural and economic factors crucial to a company’s decision of how to deploy or expand their video conferencing strategy.

The shift from premise-based infrastructure towards software-based services continued to put pressure on the endpoints market, with plug-and-play solutions increasingly adding professional features and functions to increasingly compete with codec-based endpoints in a variety of deployment scenarios.  The take up of these cloud-based video conferencing services (which are included in MZA’s Collaboration Solutions volume of this UC Applications Competitive Environment 2018 report) has determined that endpoint vendors have been forced to become more open and interoperable, while the changing set-up of workplaces and working environments has seen an evolution in the form factors that video conferencing endpoints are taking.

While multi-purpose collaboration endpoints which combine video conferencing with digital whiteboards and wireless presentation capabilities from the likes of Cisco, Microsoft and Google have grabbed headlines, more portable camera-and-codec endpoints that can be attached to any display and audio peripherals are another successful evolution of the traditional video conferencing endpoint in recent times.

Competitive Landscape

The three largest vendors of video conferencing endpoints in 2017 continued to be Cisco, Polycom and Huawei, between them accounting for over 70% of market revenues and nearly 70% of market volumes.  Despite the number of competitors in the market increasing rapidly, these established heavy-weights continued to dominate the market, and actually increased their combined share compared to the previous year.

 

Which isn’t to say that the vendors with smaller market share aren’t doing well, as there are a good number that gained market share during 2017, establishing themselves in the last few years both in their channel relationships and with their customers.

Cisco, Lifesize, Highfive, Microsoft, StarLeaf and Google all continued to promote their endpoints as the optimal access point for their respective cloud service eco-systems, while other vendors such as Polycom, Yealink and Grandstream had a much more open interoperability strategy at their core.

 

 

 

 

 

 

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Further Information:  This Post is a summary of MZA’s UC Applications Competitive Environment 2018 – Video Conferencing Endpoints analysis.  The analysis is based on a combination of input from vendors and MZA research analysis. Whilst all reasonable efforts have been made to ensure accuracy and completeness of the information provided, MZA Ltd accepts no liability for consequential loss.  The complete analysis provides granular insight at a regional, country and segment level of all leading players active.  Additional MZA UC Applications volumes include Messaging and Clients (covering voicemail, unified messaging, enterprise instant messaging and desktop/mobile UC clients) and Collaboration Solutions (covering conferencing services and team collaboration solutions).  Further MZA analysis services are available covering the Call Control, Hosted/Cloud Business Telephony, Contact Centre, Terminals and the On-Site Business Mobility markets.

For more information: Please contact Author: Tim Gelardi (tgelardi@mzaconsultants.com) or General Manager: Stephanie Watson (swatson@mzaconsultants.com) on +44 1672 516 144