Worldwide videoconferencing equipment revenue dropped 10.7% year over year to $532m during the second quarter of 2013 compared to the corresponding period last year, according to a report.
International Data Corporation (IDC) research showed revenue dropped 34.3% compared to the fourth quarter of 2011, marking a second consecutive quarterly drop.
Multi-codec immersive telepresence segment revenue experienced 32% year-over-year decrease during the second quarter of 2013.
IDC Worldwide Networking Trackers Research senior research analyst Petr Jirovsky said that the interest in videoconferencing is being driven by integrations with vendors' unified communications and collaboration portfolios, and the proliferation of video among desktop and mobile users.
"Video as a key component of collaboration continues to place high on the list of priorities for many organisations," Jirovsky said.
During the quarter, the video infrastructure equipment including hardware MCUs declined 20.4% year over year and the room-based video systems reported 5% year over year, while desktop video systems revenue increased 7.7% year over year.
Asia-Pacific and Latin America experienced highest year-over-year drop in videoconferencing revenues of 14.1% and 11.3% respectively during the second quarter, while revenues in both EMEA and North America went down by 8.8% year over year.
Senior analyst Rich Costello said that the macroeconomic situation including the recession in Europe and budget cuts in the US produced a cautionary IT spending environment that carried over into the first half of 2013, with the spending outlook for the second half of the year not much more promising.
"In addition, and most significantly, we are definitely starting to see the impact of lower-cost video systems and more software-based products and offerings on the enterprise video equipment market," Costello added.
The enterprise videoconferencing equipment market was led by Cisco with 41% share global market share in spite of 7.5% year-over-year decline in revenue, followed by Polycom with a 29.2% share and 14.8% year over year drop in revenue.
Huawei experienced a 7.1% quarter-over-quarter revenue increase in videoconferencing revenue for the second quarter of 2013 and held 7.6% share in the global market.