How big is AVoIP?

How big is AVoIP?
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AVIXA's annual forecasts (IOTA), estimate that $262.9B worth of AV products and services will be purchased globally in 2022. But how much of that is attributable to the distribution of AV over IP based networks (AVoIP)? It's a common question we are asked, and one to which there isn't a clear answer since AVoIP is more of a feature of products or an approach to a solution rather than necessarily a specific product or solution itself. For example, a display could have ethernet ports for receiving AV content from a control system that also serves content both in analog or digital form. Similarly, digital signage as a solution could in theory be done via IP or not. This makes the concept hard to isolate in an industry forecast without inputs about the portion of industry offerings that are attributable; something that have not been easy to obtain.

As with any similar thing though, it is possible to make an educated guess by slicing down to relevant sections. A starting point is the large volume of content management hardware deployed as part of any given AV related solution, which mostly handles content in a digital form for storage and distribution.  This is about 26% of spending volume currently. Other related categories include signal routing and switching and cloud-based services, which combined add another 11% or so. Many control systems too make heavy use of IP, adding 5 points. Things get difficult from there since much of the remainder are end-point devices like speakers or displays which are likely behind a digital-to-analog converter of some kind, even though not always so. Allowing for IP-based features in some would perhaps add another 5 points. So in total we are already nearing 50% of pro AV revenues coming from AVoIP related products and services, resulting in over $131B this year. Whether higher or lower will depend on filters someone might want to apply for a specific market analysis but this provides a start.

What other considerations would you bring into the analysis? Comment below with your thoughts.

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