The global AV industry will grow from $247 billion this year to more than $325 billion in 2024, according to updated forecasts in AVIXA’s 2019 AV Industry Outlook and Trends Analysis (IOTA) Global Summary.
“The demand for pro AV products and services is driven by rising GDP across much of the globe because the pro AV industry provides solutions to nearly all facets of the economy,” according to the AVIXA announcement.
The 2019 IOTA Global Summary also reveals Asia Pacific has taken over as the largest global market for AV, a shift from the lengthy run the Americas atop that list.
The Americas represent $89 billion in revenue for 2019, compared with $90.6 billion for APAC. The gap swells to more than $15 billion by 2024.
What’s causing growth?
APAC’s growth is spurred in part by the region’s demand for security, surveillance, and life safety solutions, which in turn fuels growth in the streaming media, storage, and distribution (SMSD) product segment.
SMSD is forecast to expand at a compound annual growth rate (CAGR) of 10.5 percent in the Asia-Pacific region from 2019 through 2024.
The pro AV market in the Americas is projected to continue its growth, although at a slower pace than APAC. With a CAGR of 4.7 percent, the Americas will reach $112 billion in revenue in 2024.
The corporate segment will be a major driver of pro-AV market growth for the region, with revenue rising at a CAGR of 4.2 percent from 2019 through 2024. The shift to private, public, and hybrid cloud deployments over purely on-premises solutions is driving much of the growth.
Europe, the Middle East, and Africa (EMEA) will experience moderate growth of 4.5 percent CAGR through 2024, despite near-term economic challenges.
The region will capture the largest percentage of revenue for audio equipment among the three regions and is expected to overtake the Americas in this segment with $6.7 billion in 2024.
Revenue from video displays, particularly direct-view LED, will see considerable growth in EMEA. This product segment is forecasted to grow at 8.4 percent in the region over the next five years. The region’s highest pro AV revenue source is the corporate market.
Although the revenue from the corporate market in EMEA is smaller than the amount captured by other regions, this $18 billion market is a crucial part of EMEA pro AV.
More AV Industry IOTA Global Summary Analysis
The IOTA Global Summary shows growth in markets for environmental systems and performance and entertainment solutions.
The new estimates represent “an upward revision” based on new data collection that includes more data from integrators and distributors that helps to track markup over the manufacturer price, says AVIXA senior director of market intelligence Sean Wargo.
That accounts for $22 billion globally in 2019, before services are considered.
“The hike in the revised forecasts reflects strong economies and demand for new products and services,” he says. “The growth in pro AV revenue is actually outpacing expectations for global GDP growth.”
The projected growth rate in the next five years is higher than expected one year ago, says Wargo.
The IOTA Global Summary projects about $10 billion in cloud services, direct-view LED growing “faster than forecasted” and a rapid increase in servers and storage technology.
Although the projection shows a slight dip into 2021, “the long range is still pretty positive,” says Wargo, in part because the U.S. GDP has exceeded expectations.
“The story of pro AV is ultimately one of the value-add offered by the distributor and providers in the creation of exceptional experiences from the raw materials of AV products,” said Wargo in the announcement.
“This story isn’t complete without accounting for this value through the markups.”