The combined Arris/Motorola gained market share at the expense of rival Cisco in the final quarter of 2012.
Synergy Research Group said video infrastructure revenues reached $8.8 billion (€6.81 billion) in the quarter, 3% up over the final quarter of 2011 and also 3% up on the previous quarter. However, the final quarter of the year that would normally see a seasonal uplift from vendors saw Cisco’s video infrastructure revenues fall away from the all-time high it had achieved in the third quarter.
Arris, which has a growing set-top and video infrastructure video business is in the process of acquiring Motorola Home, a deal that is expected to formally complete in the second quarter.
“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”.
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.
