How's the AV Market?

$258 billion and growing ...
How's the AV Market?

According to AVIXA's market intelligence, opportunities in the AV market are looking pretty good: Pro AV represents a $258 billion industry in 2022 and is expected to grow at a compound annual rate of 7.2% from 2021 to 2026, outpacing the broader economy.

Here' are some highlights from @Sean Wargo @Peter Hansen:

Conferencing and Collaboration
Conferencing and collaboration is the single largest solution area for pro AV and the one that weathered the pandemic storm the best thanks to global emphasis on solutions to support remote activities. It represents $46 billion in Pro AV spending in 2022 after maintaining growth over the past two years while almost all other solutions declined.

Content Production/ Streaming
Another adaptive to the pandemic when reaching customers and audiences in-person became unsafe was the effort by enterprises of many kinds to stand up increased capacity for the production and streaming of content. This solution area also maintained steady growth during the height of the pandemic and is estimated at $32B for 2022. Growth is forecast to be a modest 6% over the 2021-2026 timeframe, below industry average but helping it maintain prominence of one of the largest solution areas.

Digital Signage
While other areas realize larger growth rates as they recover from deeper pandemic impacts, digital signage is second only to conferencing and collaboration in terms of annual associated revenue for pro AV. The IOTA reports forecast 2022 to generate $35 billion in revenues for the industry and realize a 7% CAGR from 2021 to 2026 as its core markets of retail, venues, and hospitality return to more normal levels of activity.

Learning
Not to be confused with the education market itself, learning solutions include any and all technologies to support learning across all vertical markets, including corporate, hospitality, or government. In ways, these solutions represent the core of the traditional AV profession as it hearkens back to the days of projectors and other classroom technology. It has grown to include dedicated online and distance learning technology, keeping it in the top 3 solution areas and generating $35B in global pro AV revenues. Investments in classrooms themselves are returning, even as the solution blurs with conferencing and collaboration in a virtual learning world. Growth here is also expected to be modest at nearly 5% over 5 years.

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 What are you seeing in your local markets? Noticing these trends or seeing other challenges and opportunities? 

Comments

Go to the profile of Amanda Boyer
4 months ago

In the Live Events space, we are highly susceptible to government mandates, comfort of people and the current varient. We are seeing short turn around times, out of control labor prices with a lower supply of qualified labor resources and confusion by clients on what they need to put on their event in the new climate. I am very interested in any data you might have to show any trends or insights on where events are going.

Go to the profile of Nicole Verardi
4 months ago

@Amanda Boyer , good question. Makes sense that live events would be most impacted by the pandemic. Anyone else in live events seeing the same trends? 

Let's see what the experts, @Sean Wargo and @Peter Hansen think of how that market is going. 

Go to the profile of Sean Wargo
4 months ago

Hey Amanda -- overall our AV business index data from just the live events segment of pro AV does show a shift back towards growth. It is very slight though and likely has a great deal of local variance, with some of the more cautious cities and states still struggling a bit to find clientele who are fully ready to resume in-person events. Others are back to more business as usual. As federal guidance relaxes in response to improvements in the pandemic metrics (witness the recent adjustments by the CDC) and individuals become more comfortable with those changes, we expect the pattern of resumed growth to be more widespread and so push our index up further in the process. In this environment that's all great but it doesn't help the individual company who faces ongoing challenges, other than to provide reassurance the current situation is still likely to change for the better. I know we are optimistic as we continue watching the data we have!