Pro AV buyers are optimistic going into 2025 despite macroeconomic headwinds such as lower growth in large markets, political uncertainty, and looming tariffs, according to AVIXA’s first quarter Market Opportunity Analysis Report (MOAR). The positive outlook belies a market evolution that saw the abrupt end of the post pandemic spending surge in 2024, which resulted in a lower floor for growth in the industry. Growth expectations should be moderated by the realization that we are in a new phase of industry evolution. It is important to keep a close eye on overall buyer sentiment as we are still learning what this evolution will mean for the pace of spending.

Supporting the outlook are the fundamentals of the industry, which are still strong. For example, innovations continue in immersive entertainment experiences. In addition, conferencing and collaboration continue to evolve driven by the return- to-office trend.

Buyer budget expectations for the first quarter mirror comparable results to what we saw at the start of 2024. As before, the upswing is led by corporate, although this time major geographic markets are showing slower growth. Diversifying projects across smaller geos, verticals, and solutions will be key. For example, GDP growth in the US is expected to be 1.8% for 2025, while India is expected to be up 6.5% and China 4.6%. Western Europe is expected to see a 1.3% GDP increase.

The spotlight will likely continue to shift from the US and Western Europe to India, the Middle East and Southeast Asia. Verticals such as hospitality, retail, energy and transportation will play a stronger role in driving growth.

Moving from geographic outlook to vertical industries, corporate Pro AV buyer expectations remain strong while education is still challenging, likely due to a shift in the equipment replacement cycle. It's likely that there was some stockpiling of pro AV equipment when government grants were available, mitigating the need for upgrades in 2024 and 2025. Venues and entertainment are also down, reflecting their lowest point in growth expectations since the pandemic. This market is another example of life after the post pandemic surge. Buyers are returning to budget efficiency and traditional replacement cycles, dampening growth.

Other verticals, such as hospitality, may take up the slack, with interest in new pro AV solutions to attract guests and meeting and event sponsors. That said, the largest opportunity remains in corporate where buyers are showing increased interest in control rooms and AV production while still emphasizing security and conferencing systems. This reflects a still evolving landscape. Software platforms and immersive audio products are also top priorities. A wide-ranging shifting market, corporate is not only oscillating between remote and on-site installations, but also between software based and traditional hardware platforms.

With corporate as the mainstay, we will continue to look for the strengthening and evolution of events and entertainment, led by new categories such as Broadcast AV.