The strong overall revenue trends reflected in the 2019 State of the Industry Report survey translate to almost all AV market trends showing strength during 2018. The most important category, of course, is the corporate market, in which 92 percent of survey respondents say they do business.
It’s good news, therefore, that 65 percent saw the corporate market trending up in 2018.
Corporate Market Strength is a Great Sign
The health of the corporate market, points out AVIXA’s Sean Wargo, is a good indicator of the strength of the overall AV integration industry. The reason, he says, is because so many firms rely on those customers for a significant source of revenue.
“The corporate market has been as hot as can be over the last year or two,” NSCA’s Chuck Wilson says.
Other Most Profitable AV Markets
The second most popular vertical market is education with 81 percent of respondents reporting that they do business with K-12 or higher education customers.
It’s more good news, therefore, that education also shows strong growth with 51 percent reporting a positive trend during 2018.
“Education is where we see a lot of growth right now, and it’s the one people are talking about being up,” Wilson says.
Health care, which has 47 percent of respondents reporting that it was up for them in 2018, is also strong, Wilson adds. “Corporate, education and health care, I think, will be good for the next few years.”
Government AV Market is … Hard to Predict
Government, meanwhile, is an interesting market as 2019 begins. It wasn’t particularly strong in 2018 with 37 percent of respondents reporting it was up but 15 percent citing a down year.
However, NSCA estimates that government customers might prove fruitful for their AV integration partners over the next few years.
“When we look at transit facilities and airports — the infrastructure of the country — and even public schools, we’re seeing a lot of money being appropriated in that direction,” Wilson says.
“I think the shift of political landscape in the House of Representatives will add to that. We see what will result in more technology solutions being implemented with the Democrats shift in the House.
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“More of their bills that were presented had technology spending than what the GOP did, so we’re optimistic that could translate into more spending among the government side.”