The telepresence market hits $2bn in 2017

05 March 2018 | Natalie Bannerman


Cisco and Polycom both lead the way as the telepresence market goes back into growth mode with both Q3 and Q4 of 2017 showing increased vendor revenues.

Jeremy Duke 250 x 250New 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.”

Telepresence market graph

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.

Synergy Research Group recently published the results of a number of its research. Earlier this month the company found that the capital expenditure (capex) of hyperscale operators totalled $22 billion in Q4 of 2017. Figures show that capex reached a total of almost $75 billion for the full year indicating a 19% growth in comparison to 2016.

Back in February Synergy Research Group found that cloud infrastructure services jumped 46% to over $13 billion in the final quarter of 2017 when compared to the previous year. Synergy attributes this increased growth rate partly to the aggressive growth of the leading cloud providers, all of whom posted strong quarterly results.