Video Infrastructure Market Reaches New Heights in Q2

RENO, NV, September 26, 2012

New data from Synergy Research Group shows that the video infrastructure market generated revenues of $8.6 billion for technology vendors in Q2 2012 – representing 11% growth over Q2 2011 and also a record high for quarterly video revenues. Media data centers were a standout segment, growing by 26% year-on-year, while residential gateways also had a very strong quarter. On a rolling annualized basis, some of the strongest growth was achieved by IPTV set-top boxes, middleware and conditional access software/DRM. Content delivery networks remains the largest single segment, accounting for 20% of all video infrastructure revenues in the quarter.

Market share of the pre-NDS Cisco lost a little ground falling to 21% in the quarter, but the addition of NDS boosts this figure to 24%, still well ahead of its nearest competitor (Motorola with 9%). Companies making sequential gains in market share included Technicolor, Pace, Echostar and Alcatel-Lucent – although in the last three cases this was helped by rebounds from relatively weak revenues in the first quarter of the year. The Q2 market leaders by revenue in the main segments were:

• • Content acquisition & preparation – Cisco/NDS, Nagra/Kudelski, Motorola
  • Content distribution networks – Cisco, Alcatel-Lucent, Juniper
  • Media data center – IBM, HP, Cisco
  • Content management – Cisco, Motorola, Arris
  • Video client hardware & software – Motorola, Cisco, Technicolor

 “Looking to the next five years when we are forecasting average annual growth in the video infrastructure market of over 7%, one of the biggest drivers in technology and market spend will be a move to cloud-based architectures and service delivery.” says Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “It’s interesting to see that in Q2 cloud-oriented technology spend already accounted for 18% of quarterly revenues, a percentage that will grow strongly quarter by quarter.”