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Global Commercial AV Industry Will Reach $325 Billion In 2024, According To AVIXA

AVIXA

The global commercial AV industry will grow to more than $325 billion in 2024, from $247 billion in 2019, according to updated forecasts in the 2019 AV Industry Outlook and Trends Analysis (IOTA) Global Summary produced by AVIXA. Overall, the demand for commercial AV products and services is driven by rising GDP across much of the globe because the AV industry provides solutions to nearly all facets of the economy.

For the first time, the new IOTA report includes additional data from distributors and integrators to track the amount of markup over the manufacturer price that is applied by the commercial AV channel. In 2019, markups are projected to represent an additional $22 billion in revenues globally, before accounting for services revenue.

“The story of pro AV is ultimately one of the value-add offered by the distributor and providers in the creation of exceptional experiences from the raw materials of AV products,” Sean Wargo, Senior Director of Market Intelligence, AVIXA, said. “This story isn’t complete without accounting for this value through the markups applied by the channel, as they source and optimize hardware and services together. AVIXA now more accurately accounts for this in its channel revenue estimates.”

Until the latest report, the Americas had consistently represented the largest commercial AV revenue-producing region. The new forecast shows the Asia-Pacific region overtaking the Americas this year. The Americas represent $89 billion in revenue for 2019, compared with $90.6 billion for APAC. The gap swells to more than $15 billion by 2024.

The commercial AV market in the Americas is projected to continue its growth, although at a slower pace than APAC. With a CAGR of 4.7 percent, the Americas will reach $112 billion in revenue in 2024. The corporate segment will be a major driver of commercial AV market growth for the region, with revenue rising at a CAGR of 4.2 percent from 2019 through 2024.

Meanwhile, Europe, the Middle East and Africa (EMEA) will experience moderate growth of 4.5 percent CAGR through 2024, despite near-term economic challenges. The region will capture the largest percentage of revenue for audio equipment among the three regions and is expected to overtake the Americas in this segment with $6.7 billion in 2024. Revenue from video displays, particularly direct-view LED, will see considerable growth in EMEA. This product segment is forecasted to grow at 8.4 percent in the region over the next five years.

The IOTA report was produced by AVIXA in conjunction with IHS Markit, a noted insights and intelligence firm. To learn more about the IOTA report, visit www.avixa.org/IOTA

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