Video hardware infrastructure revenues to reach $3.8 billion by 2017

ENGLAND: The overall infrastructure video equipment market will grow to reach $3.8 billion dollars in 2017, up from $2.8 billion in 2012. Video encoders represent the fastest growing sub-segment of the market, growing over 10 percent annually, compared to the market as a whole which grows at a 6 percent pace.

Classic video servers, which are experiencing a high rate of integration as well as replacement with more modern IP-based architectures, increase at about 3 percent annually.

“Significant consolidation is taking place within the video infrastructure hardware space,” according to Adarsh Krishnan, senior analyst at ABI Research.

“In addition to the well-publicized acquisition by smaller Arris of larger Motorola – creating a more healthy and diverse company – Harmonic recently spun off a small and low-margin business to Aurora Networks. Mature hardware companies, including Cisco, Ericsson, and even Huawei are all turning their focus to higher margin services business as new entrants compete in well understood sections of the equipment space.”