The professional audiovisual industry will grow from $186 billion in 2018 to $230 billion by 2023, according to updated forecasts in the new 2018 AV Industry Outlook and Trends Analysis (IOTA) Global Summary produced by AVIXA. This report examines the forces driving growth, from macroeconomic factors to technology trends to vertical market demands, on a global scale.
"There are many shifting pieces within the AV industry; it's important to pause and take the market's temperature," said Sean Wargo, senior director of market intelligence, AVIXA. "Based on our research, we're expecting compound annual growth to be 4.3 percent from 2018 to 2023, which is in-line with our previous estimates. Regions around the world are growing, with Asia poised to take the lead as the largest market, capturing 36 percent of the pro-AV market by 2023."
The IOTA report was produced for AVIXA by IHS Markit, a noted insights and intelligence firm. The research methodology was based on combining supply-side market sizing with demand-side market requirements, which were then aligned with macroeconomic factors and inputs
Among the highlights from the 2018 AV Industry Outlook and Trends Analysis Global Summary:
Macroeconomic Factors: While industries and economies are generally flourishing, trade policies and protectionist views are acting somewhat as headwinds. Uncertainties related to Brexit, as well as the outcome of Brazil's upcoming election, low oil revenues, and fiscal deficit lead to declines for the pro-AV industry. Factors leading to growth include Europe's real GDP increasing from 1.9 percent in 2016 to 4 percent in 2017, new manufacturing hubs emerging in Southeast Asia and South Asia, and improvement in the U.S. economy from fiscal stimulus and strengthening business investments.
Technology Trends: The five technology trends rising to the top of the list as drivers of the growth are audio advances, future displays, IoT for smart buildings, IT and the cloud, and artificial intelligence. Asia-Pacific and the Americas lead in technology advancements, but face similar challenges of commoditization, while Europe is less impacted by both trends.
Solution Bundles: The integration of technologies is what differentiates the pro-AV industry from others because many of the technologies, products, and services for audio and video capture, processing, storage, and displays are similar across different applications. The top solutions include conferencing and collaboration, learning, live events, digital signage, security and surveillance, and performance and entertainment.
Vertical Market Demands: Although the corporate market represents the lifeblood of professional AV, smaller markets, many of which focus on the consumer experience, have the greatest growth potential. For example, from 2018 to 2023, the healthcare market will grow 10 percent CAGR, from $2.4 billion to $3.9 billion; hospitality will grow 7 percent, from $7 billion to $9.4 billion.
The 2018 AV Industry Outlook and Trends Analysis (IOTA) is published as a series of reports—including one global and three regional reports—plus a series of reports highlighting specific segments of the AV industry. The Global, Americas, Asia-Pacific, and Europe reports are available now to purchase, with discounts for AVIXA members. For more information, visit avixa.org/IOTA.