If you're looking for a weather-related metaphor, the forecast for the Pro AV industry is partly sunny…with a chance of tariffs.
[All the InfoComm News, Products, and Insights for 2025]
On Tuesday, AVIXA presented its annual Market Insights Lunch, a 90-minute primer on the current state of macroeconomic trends impacting the Pro AV industry. This year's program, "The State of the Pro AV Industry: Convergence Realized!" was presented by Sean Wargo, VP of market insight, and Mike Sullivan-Trainor, senior industry analyst.
The luncheon ran the economic gauntlet while exploring highlights from the organization's Industry Outlook and Trends Analysis (IOTA) report, which provides data that builds the story of where the industry is heading over the next five years. Basically, AVIXA offered a conservative forecast that predicts a lower overall growth rate, a result of uncertainty from high interest rates, geopolitics, and poor economic performance. "Tariffs are a factor, there's no doubt," Wargo said.
While the pace is slower, the outlook for 2030 is still a $402 billion Pro AV market that is expected to grow annually at about 3.9%, which means it will continue to exceed GDP growth. Developing markets, such as the Middle East and Africa and Asia-Pacific, will lead industry growth, while mature markets, including North America and Europe, will lag.
Wargo expects to see security and surveillance exhibit the highest growth rate, while live events will continue its comeback. Transformational technologies are increasingly being woven into the fabric of the industry, including AVoIP, AI, extended reality, and software and cloud migration.
What's driving the outlook? Wargo said growth engines are shifting. For example, experiences are driving buyers, with plans to improve AV production rooms for broadcast high on the list of upgrades in corporate, retail, and venue market segments.
The labor market remains tight in the Pro AV industry as well, conditions that have remained elevated since 2022. Staffing and skilled labor remain top concerns, followed by product equipment costs and the macroeconomic environment.
Despite headwinds like tariffs and labor costs, Sullivan-Trainor said Pro AV remains optimistic about future opportunities. He said more than 80% of channel partners expect growth each year, and 2025 is no exception. There may be economic challenges, but there are still projects to be done.
