Telepresence market hits $2bn in 2017
Cisco and Polycom are leaders in the telepresence market as the sector grows by 21% in the second half of 2017
Cisco and Polycom both lead the way as the telepresence market gone back into growth mode with both Q3 and Q4 of 2017 showing increased vendor revenues.
New data from the Synergy Research Group shows vendor revenues in the second half of 2017 grew by 21% up from the first half the year and up 4% compared to 2016.
Geographically all four global regions (North America, Latin America, Europe, Middle East and Africa, and Asia-Pacific) saw growth in the latter part of the year. Asia-Pacific and Latin America did particularly well.
From a market perspective, the industry has been consolidating around Cisco and Polycom, and this is their sixth consecutive quarter where their combined share of the worldwide market was over 75%. In relation to that, vendors the remaining vendors have been losing about a percentage point of share per year combined.
“The telepresence market has been on a bumpy ride for a while driven by a mix of aggressive price competition, technology disruption and the introduction of newer, lower priced systems,” said Jeremy Duke, founder and chief analyst at Synergy Research Group. “Our research over the last 12 months is showing a strong indication of price stabilization and we anticipate positive revenue growth in much of the telepresence market in 2018.”
The total telepresence vendor revenues for 2017 came in just short of $2 billion, down marginally from 2016. With pricing now more stable and demand staying reasonably robust, Synergy forecasts that the market will grow over the next five years.