Global Video Conferencing Endpoints Market Grows to US$3.9 billion in 2018
Global Video Conferencing Endpoints Market Growths to US$3.9 billion in 2018
MZA has published (April 2019) its latest update to its Video Conferencing Endpoints market analysis which shows that the market for codec-based video conferencing endpoints increased by 8% in 2018 to reach US$ 3.9 billion at end user levels as 590 thousand endpoints were sold globally.
Video conferencing has continued to increase in both availability and usage in recent years, with the rise of “video first” strategies from many of the leading conferencing service providers helping to provide video capabilities to an ever-wider number of users. The endpoints that are being used to consume these video calls and meetings have typically been connected to premises-based infrastructure but are increasingly being used in conjunction with cloud-based video services.
The market for these endpoints has been boosted by greater interoperability and flexibility, with solutions able to be deployed into proprietary, mixed or third-party environments, with the openness of the architecture allowing for a more flexible and predictable investment. Huddle rooms and collaborative spaces have enabled smaller, lower cost endpoints to find a place in the market, although non-codec endpoints (not included in this analysis) have continued to be a competitive challenge for traditional endpoints in these spaces.
With end user revenue growing at a high single-digit rate in 2018, the volume of video conferencing endpoints registered double-digit growth as the expansion of available collaborative spaces allowed for a much faster rise in the range of endpoints available in the market with collaboration whiteboards, all-in-one huddle solutions and smaller, wide-angle solutions gaining traction in the smaller rooms and spaces.
Changing workstyles have also contributed to the growth in video endpoints, with more flexible working practices meaning that people are more mobile and often working remotely. In these scenarios video collaboration is seen as a positive way to remain connected to colleagues and increase productivity so is actively encouraged, thus driving the implementation of more video-enabled rooms in locations where remote workers are no longer present. This cultural 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.
Representing around 70% of total video conferencing endpoints sold in 2018 in volume terms, the global market continued to be dominated by Cisco, Poly and Huawei, further increasing their collective market share despite the rise of several new entrants. With very different strategies to address the market, these three vendors also had significant regional variations in their performances.
The market is segmenting into vendors espousing their own cloud-based video infrastructure, such as Cisco, Huawei, Lifesize, Highfive and StarLeaf, and those for whom openness and interoperability with a number of service providers are key tenants to their strategy, led by Poly, Yealink, Grandstream and Dolby.
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Further Information: This press release is a summary of MZA’s UC Applications Competitive Environment 2019 – Video Conferencing Endpoints analysis. This analysis focuses on purpose-built video conferencing endpoints with embedded codecs and excludes peripheral devices such as USB cameras used in conjunction with a personal laptop/computer, software-based solutions deployed on standard hardware such as an Intel NUC mini-PC or Microsoft Surface Pro with connected webcams, speakers etc, and videophones. This analysis also excludes any revenues derived from infrastructure deployed in conjunction with the endpoints. 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 and team collaboration solutions). Further MZA analysis services are available covering the Call Control, Hosted/Cloud Business Telephony, Contact Centre, Business Phones and the On-Site Business Mobility markets.
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.
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