Video market explodes in H1 2010

Synergy Research reports hefty worldwide sales increase with more growth expected in 2011

On the up: The videoconferencing and telepresence market is expected to be worth $2.5bn next year

The worldwide market for telepresence and videoconferencing technologies grew almost a third in 2010's first half, research has found.

Figures from Synergy Research Group reveal the market was worth $1.1bn (£690m) in H1 2010, a 32 per cent increase on last year. The analyst claims video technology has gained increased mainstream acceptance. Next year, the market is forecasted to be worth an annual total of $2.5bn.

The globe's three biggest regions – Asia-Pacific, North America and EMEA – account for 34, 33 and 30 per cent respectively of the market. Asia-Pacific is by far the fastest growing, with H1 2010 sales increasing 55.4 per cent. Video and telepresence revenue was up 20.5 per cent in EMEA and a relatively modest 8.5 per cent in North America.

In the sliver of market that remains, Latin America showed impressive growth, with market worth doubling year on year after strong sales in Brazil and Mexico.

Cisco – including recent acquisition Tandberg – is the world's leading video vendor, and snaffled a 43.4 per cent share of the market in H1. Polycom comes second with a 28.8 per cent slice, way ahead of Huawei in third, which holds a 9.1 per cent share. Radvision and Sony hold 3.4 and two per cent of the market respectively to complete the top five.

Synergy is expecting managed and hosted video services to help fuel further market growth. Principal analyst Jeremy Duke claimed the current dearth of major players in the market could lead to a dynamic vendor landscape.

"This market has seen a radical shift with Cisco acquiring Tandberg," he said. "With only two major players in this large and expanding market, we anticipate the market to remain extremely dynamic with new market entrants, partnerships/alliances and further acquisitions."