Cisco is half of video

The enterprise video market experienced strong growth in 2010 as video-based communications continues to be a top trend in the enterprise and in telecom. Infonetics Research found that the market for videoconferencing and telepresence systems last year grew 18% to $2.2 billion.

The firm expects the enterprise videoconferencing and telepresence market to more than double by 2015 to $5 billion. Cisco, thanks to the Tandberg acquisition, is the overall market leader in enterprise videoconferencing, with a 50% revenue share in 2010.

Polycom maintains a “solid second” for revenue share, but is the leader in units shipped, Infonetics reports.

Demand for enterprise videoconferencing and telepresence is driven by businesses looking for a richer means of communication with all communities, including customers, employees, partners and suppliers. Indeed, vendors offering systems that are multi-modal, visual and support the collaboration requirements of globally distributed companies will be the “biggest winners” in the enterprise communications market, Infonetics says.

Multi-purpose room systems account for the majority of enterprise videoconferencing equipment, but “immersive” telepresence systems are expected to have the highest growth rates of all videoconferencing equipment. Software-based endpoints out-ship hardware by 10:1 due to low cost and availability on PBXs, Infonetics notes.  

That’s just enterprise. Cisco says video will account for over 90% of global consumer IP traffic in 2014.

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