AV's Greatest Opportunities Lie in the Eye of the Storm

The AV industry faces a paradox: while overall growth projections have been revised down to 3.9%, four key technologies are creating explosive opportunities beneath the surface. Smart players are fishing where the innovation fish are biting.
AV's Greatest Opportunities Lie in the Eye of the Storm
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AVIXA’s latest Industry Outlook and Trends Analysis (IOTA) shows that professional AV revenue is projected to grow from $332 billion in 2025 to $402 billion by 2030. The five-year projection is revised downward from 5.3% to 3.9% due to macroeconomic pressures, including tariff uncertainty, geopolitics, and high interest rates. The emerging narrative is predictably cautious, focused on challenges and slowdowns.  

While it’s easy to focus on the challenges embedded in AVIXA's revised forecasts, the numbers hide that certain technologies, regions, and business models are experiencing spectacular growth while others decline. There’s a fundamental transformation happening beneath AVIXA’s numbers. While legacy AV markets are struggling, four technological shifts are creating explosive growth opportunities: AV over IP, software and cloud solutions, artificial intelligence (AI), and extended/augmented reality (XR/AR) 

From these four, AV-over-IP is a distant and undisputed leading growth engine. We believe, based on numerous sources, that currently 38% of signal routing & switching are AV-over-IP capable, growing from ~20% five to ten years ago to over 60% in the next five years. Average selling prices in this space are increasing due to added value, improved performance, enhanced applications, and remote manageability - a perfect storm. 

The Dutch have a saying that translates to something like “you should fish where the fish are”. Today in AV, that means looking beyond traditional hardware sales to where true innovation is creating value. There's a persistent misconception that innovation means entirely new products or technologies. Real innovation lies in incremental improvements that add value and enhance ease of use.  

Consider the meeting room experience transformation. Real-life industry observations show that setup time has dropped from seven minutes a few years ago to under 20 seconds today; basically, the time it takes to put down your laptop and your cup of coffee and to take a seat. This means that our industry has removed friction that was actively damaging business productivity. 

However, change is always intimidating, and the AV industry's resistance to change parallels what we have observed in other sectors undergoing digital transformation. Initial adoption is slow, but once the tipping point is reached, it accelerates exponentially. Companies investing in these transitions now are positioning themselves for market share gains when the broader market inevitably follows. 

The Experience Economy Imperative 

The shift from post-pandemic recovery to more stabilized, experience-driven markets such as live events, retail, signage, venues, and hospitality represents a fundamental change in how organizations view AV investment. Organizations are no longer asking "What AV equipment do we need?" They're asking, "How can we create experiences that drive business results?" This consultative shift requires integrators to evolve from technology vendors to business outcome partners. 

Industry discussions often frame new technologies as existential threats to established models. They’ll cover for example the question "Will streaming kill cinema?" This question is moot, as cinema shouldn’t try to compete with streaming. It should evolve into an immersive experience, something that streaming can't replicate. Similarly, traditional AV isn't competing with cloud-based solutions; it's evolving into integrated experience platforms that create value beyond what point solutions can deliver. 

Where We Go From Here 

The opportunities are clear. Geographic arbitrage presents significant potential, as markets that embrace innovation more quickly will capture disproportionate value. Technology transition profits await companies leading AV over IP, cloud, AI, and XR adoption, allowing them to expand market share. Organizations that solve business problems, rather than simply selling equipment, will command premium pricing. Integration capabilities offer substantial rewards for companies that can bridge legacy systems with next-generation platforms, enabling them to capture transition revenues during this period of technological transformation. 

The fish are biting. The question is: are you fishing where they are? 

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