Business

Research Shows Plenty Of ‘Treasure’ In Commercial AV

AVIXA’s 2019 Industry Outlook and Trends Analysis report reveals what lies ahead for the industry.

If AVIXA’s Industry Outlook and Trends Analysis (IOTA) report were a treasure map, it would have “X” inked all over it. In business, revenue growth is treasure, and the headline number is a 5.7-percent compound annual growth rate (CAGR) for commercial AV revenue over the next five years. That means the industry will grow from a projected $247 billion in global revenue this year to $325 billion in 2024. Sometimes, one dynamic technology or market is the primary instigator of such positive movement, but that’s not the case here. Although some solutions and verticals are more dynamic than others are, commercial AV stands out because of how many different high-growth niches it has to offer.

The IOTA report divides the commercial AV world in three main ways: by geographic region, by vertical market and by solution area. In the full IOTA report series, three main geographic regions (Asia-Pacific; Europe, the Middle East and Africa (EMEA); and the Americas) are broken down into smaller regions and, in many cases, even countries. Vertical markets—application areas for technology, such as retail and hospitality—are subdivided into segments like audio equipment and video displays, and then further broken down into products like digital signal processors, media players and AV servers. Solution areas—bundles of hardware, software and services—are also broken down into these project components. Between the combined crosscuts of region, solution, product, market and year, there are literally thousands of different ways to slice and dice the data. Decision-makers can explore fine-tuned growth projections to help them target their investments and maximize their returns.

If you analyze by geography, the fastest-growing region is Asia-Pacific, forecasted at a 7.1-percent CAGR over the next five years. At a forecasted 4.7-percent CAGR, the Americas are the slowest-growing region, although, in truth, 4.7-percent growth should never be described as slow.

Of the 11 main vertical markets (excluding the catch-all “others” category), only the residential vertical is growing on the slow slide; its projected five-year CAGR is a little shy of one percent. However, the remaining 10 verticals are projected to grow at a minimum of 5.2-percent CAGR, accentuating, once again, how broad-based the strong commercial AV revenue gains are.

Divided by solution area, commercial AV revenue growth is widely shared, too. Across the nine main solution areas (again, excluding “others”), CAGRs range from 3.1 percent for conferencing and collaboration to 8.9 percent for performance and entertainment. Naturally, you want your business to be involved in the solutions that are nearing the double-digit end of the spectrum, but even a 3.1-percent CAGR is certainly nothing to sneeze at!

Numbers without context can sometimes be unhelpful—almost, at times, even dangerous. Explanation and analysis of data can offer crucial context to help business owners understand the main driving factors, both push and pull. That’s why the IOTA report series offers pages and pages of figures, description and notes in addition to its myriad data points. This information explains areas of uncertainty, areas of friction and transformations that are happening within the industry.

A top trend that transcends the numbers is the rise of services. Between declining hardware prices and the rise of the experience economy, opportunities centered on design, installation and managed services are expanding. Businesses that can offer solutions that consistently feel fresh and up to date will see strong revenue. In addition, the customized nature of these solutions often allows providers to differentiate themselves better and, thus, to command a larger share of revenues.

The rise of AV-over-IP shines brightly in this year’s IOTA. IP networks are more important than ever for carrying AV content and command signals; that fact has facilitated an explosion of products and investment. Proliferation of digital signage requires the backend support of servers and storage, along with connectivity for content distribution. This revenue stream is substantial already, and it’s growing at a blistering pace. That makes it both an opportunity for and a threat to businesses: It’s an opportunity for those who can capitalize on the expanding income stream, and it’s a threat to those who can’t keep up.

Overall, the news is good for commercial AV, with global revenue rising quickly in just about every major slice of the market. Arming yourself with research like what AVIXA’s IOTA offers is vital to staying ahead of the trends that matter. But make sure you’re plugged into the latest, regardless of source! Visit  www.avixa.org/iota to learn more.

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