Arris/Motorola Narrows the Gap on Cisco in Q4 Video Infrastructure Market

RENO, NV, March 25, 2013

New data from Synergy Research Group shows that a combined Arris/Motorola gained market share at Cisco’s expense in the final quarter of 2012. Video infrastructure revenues reached $8.8 billion in the quarter, 3% up over the final quarter of 2011 and also 3% up on the previous quarter. But in a final quarter which usually sees a seasonal uplift for most vendors, Cisco’s video infrastructure revenues dropped off a little from the all-time high it achieved in Q3. Meanwhile, in aggregate Arris/Motorola market share increased to 12%. (Arris is in the process of acquiring Motorola Home, a deal which is expected to formally close during the second quarter).

Full-year 2012 video infrastructure revenues passed the $34 billion mark, 7% up on 2011. Among the larger segments, some of the standout growth performers were media data centers (up 15% over 2011), residential gateways (up 17%), IPTV set-top boxes (up 10%) and content delivery networks (up 7%). Revenues from software and middleware grew by 7% in the year.

“While Cisco’s acquisition of NDS saw it firmly cement its position as leader in the video infrastructure market, the bold acquisition of Motorola Home by Arris will see it leapfrog into a clear number two ranking position, well ahead of the chasing pack” says John Dinsdale, Synergy Research Group’s Managing Director. “If Arris can effectively manage the acquisition and the merger of activities, it will be in a good position to further consolidate its status in a market which remains highly fragmented. Going forward I expect to see more M&A activity and a drive to broaden video portfolios and geographic footprint".