Video infrastructure revenues top $8 billion for fourth consecutive quarter

RENO, NV, December 5, 2012

New data from Synergy Research Group shows that for the fourth consecutive quarter the public video infrastructure market generated revenues in excess of $8 billion for technology vendors. Third quarter revenues dropped 2% from the previous quarter, but grew 6% year-on-year. On a rolling annualized basis the market grew by a healthy 8%, with some of the standout segments being media data centers (up 19%), conditional access software/DRM (up 14%), residential gateways (up 14%), and content management middleware (up 12%).

 

Cisco remains the clear market leader, with the acquisition of NDS helping to push its market share to 24% in the quarter, while Motorola, the second ranked vendor, saw its market share drop off a little to 9%. They were followed by Pace (5%), Technicolor (5%), Alcatel-Lucent (4%) and Echostar (3%). There is a long tail of vendors with a small market share, due in large part to the fragmented nature of the end-user equipment market. It is noteworthy that the market share ranking in Asia-Pac is very different from other regions; Cisco is still the leader but it is followed by a group consisting mainly of Chinese and South Korean vendors.

“I expect to see further shake-up in the market driven by the gradual transition to cloud-oriented technology and the continued high growth of digital video subscribers and users in the APAC region” says Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “Over the next five years media centers will account for an ever larger portion of the market, while the increasingly commoditized nature of the end-user equipment segment will see larger volumes but at much lower price points”.