After reaching $93 billion in 2019, the Americas commercial AV market is set to drop 8 percent to $86 billion in 2020 due to the COVID-19 pandemic, according to the new 2020 AV Industry Outlook and Trends Analysis (IOTA) Americas Summary produced by AVIXA. However, a strong recovery is expected, with growth resuming in 2021. In 2022, revenue will rise to $95 billion and reach $108 billion in 2025.
“AVIXA’s latest forecast was formulated in the first half of 2020 and is based on the assumption that market growth would return in the second half of the year as businesses reopened and resumed purchases of pro AV products,” Sean Wargo, Senior Director of Market Intelligence, AVIXA, said. “Our forecasts show that a lot of the pro AV products and services that were already trending upward—servers, digital signage, security, conferencing, and collaboration—will pick up more steam because of the pandemic’s impact.”
The 8 percent COVID-19-related drop in Americas AV revenue in 2020 closely aligns with the global decline of 7.7 percent in 2020. However, the Americas will perform better than the Europe, Middle East and Africa (EMEA) region, which is set for an 8.9 percent decline. In contrast, the Americas will underperform Asia-Pacific, which will decline by 6.4 percent.
North America accounts for a dominating 87 percent of Americas regional revenue in 2020—a share that will largely hold steady through 2025. Although much smaller compared to North America, the South America market will undergo stronger growth, with a compound annual growth rate (CAGR) of 5.6 percent from 2020 through 2025—compared to 4.5 percent for North America. Central America & the Caribbean will attain region-leading growth with a 5.8 percent CAGR.
Not only is the energy and utility market the fastest growing in North America, it’s also the fastest across the entire Americas region with an 8.5 percent CAGR for 2020-2025. Due to the pandemic’s impact on decreasing travel, demand for oil has dropped, however, the market is expected to rise rapidly as economic conditions improve. This will drive investments in smart-city, smart-grid, with heavy digital signage and control room solutions, translating into considerable demand for LED video displays, which will enjoy a 25.6 percent CAGR.
The fastest-growing industry in Central America and the Caribbean is transportation, with revenue rising at a CAGR of 10.4 percent to reach $331 million in 2025, up from $201.7 million in 2020. Transportation also drives the pro AV industry in South America; the market will grow at an 11 percent CAGR from 2020-2025, growing from $511.1 million to $863.1 million.
In the Americas, education will suffer limited fallout from COVID-19 in 2020, with pro AV revenue declining by 2.7 percent, and a 4-percent rebound expected for 2021. Given the unknown nature of COVID-19 and the uncertainty around the timing of a vaccine, schools and colleges will continue to invest in remote-learning solutions. This will not only drive software as a service (SaaS)-based distance-learning solutions but investment in remote teaching aid software, connectivity, and cloud and managed services as well.
Although it will generate only a mild CAGR of 2.3 percent from 2020 to 2025, conferencing and collaboration will remain the top solution bundle in the Americas. Increased remote working in 2020, along with limited access for installation, will depress the need for on-premise conferencing in the very near term. However, as employees return to work in a limited capacity, AVIXA predicts that there will be even more need for collaboration among on-premise and remote workers. This is expected to push the installations in the second half of 2020.
To learn more about the 2020 AV Industry Outlook and Trends Analysis (IOTA) Americas Summary, visit avixa.org/IOTA.
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