AV over IP (AVoIP) continues to attract attention in the low-latency pro AV market, with global shipments of encoders and decoders growing significantly, according to an industry report from Futuresource Consulting. Despite positive market developments and unrivaled growth, the technology has thus far failed to displace existing extension technologies en masse in low-latency pro AV segments.
“We’re seeing a lot of developments around AVoIP solutions,” said Anthony Brennan, analyst, Futuresource Consulting. “Shipments have increased more than 60 percent year-on-year and vendors are reporting significant volume growth, but there continue to be a number of challenges plaguing vendors in the market.
“Yes, volume growth has been significant this year, there’s no doubt about it. Interest and demand are moving in the right direction, but AVoIP has fallen behind the high expectations of many in 2018, with solutions facing significant obstacles to mass adoption," Brennan continued. "The market is still in its early stages, with significant volume growth on the horizon.”
The 1G vs 10G Dilemma
1G and 10G solutions continue to battle it out, with 1G taking the lion’s share of the market. Extron’s market entrance with an offering that supports both 1G and 10G installations means that competition in this segment is expected to escalate.
“Our forecasts show both 1G and 10G solutions growing rapidly during the next five years,” continued Brennan, “but the 1G market is significantly further along than the 10G space, with major vendors continuing to focus solely on the 1G segment and price point, bandwidth requirements, and the widespread availability of 1G networks helping grow shipments here.”
Developments in the Corporate Meeting Room
Corporate and higher education verticals are key growth opportunities for AVoIP, as businesses adopt innovative video distribution techniques across meeting rooms, and universities ramp up demand for AVoIP solutions. Despite substantial growth forecasted in these segments, wider developments in the meeting room are set to have a significant impact here, with the uptake in UC platforms and demographic shifts in the size of meeting rooms having the potential to dampen demand for video distribution.
These could impact demand in two key areas. First, the corporate vertical is seeing growing interest and demand for UC to handle content sharing and communication between meeting rooms, thus lowering the desire for video distribution across companies. Second, meeting room design is trending toward simplistic huddle rooms and small meeting rooms, which require less extension and simpler AV setups. While this has yet to make a real impact on demand in this market, it is certainly a trend that vendors should be aware of.
U.S. Leads the Way, China on the Rise
Looking at a geographical perspective, the U.S. maintains its position as a key player in the AVoIP space,” added Brennan. “China is also making headway, with volumes in this market already noteworthy and growing rapidly. Moving forward, China’s position as both a manufacturing hub and burgeoning marketplace will reap rewards. Western Europe is also witnessing high demand, with the widespread availability of existing 1G networks helping to increase interest in countries such as the UK, Benelux, France, and the Nordics.
“Despite significant growth, it has been a mixed year for the AVoIP market. Some vendors have enjoyed rapid sales growth, but many believe that the market has much more to offer in the coming months and years,” Brennan noted.