Anaheim, CA (June 21, 2007)–A new study by Acclaro Growth Partners, released at InfoComm07, has determined audiovisual products and services comprise a $25 billion industry in North America. The AV Industry Market Definition and Strategy Study, conducted on behalf of InfoComm International, forecasts 11 percent growth in the audiovisual industry over the next two years.
The growth of digital signage, videoconferencing, and command and control facilities has resulted in a 30 percent growth in demand for AV services over the past three years. The boom in construction and building renovations is the leading driver of demand for audiovisual products and services, as AV is now considered an integral part of designing and outfitting buildings. Sixty percent of AV goods and services are purchased as part of a new construction or major renovation projects.
Interest in large screens and high-definition televisions is creating increased growth in the display market. HDTVs are growing more than twice as quickly as the overall display market. Improvements in picture quality have also increased interest and sales in high definition videoconferencing products and services.
The demand for videoconference equipment and services is expected to increase by an additional 20 percent between 2007 and 2009.
Digital signage has grown explosively over the past few years, with industry experts estimating a growth rate of 10 percent per month. More than one million digital signs are expected to be found in North America by 2009. Over the next three years, corporate officials estimate that 45 percent of corporate AV budgets will be spent on digital signage and videoconferencing goods and services.
Contracts for service and maintenance of audiovisual systems are also growing. Three years ago most AV integrators did not offer these services, or they offered basic maintenance contracts that would be considered extended warranties.
The government, corporate and education markets are the three largest consumers of audiovisual products and services. The growing need for communication and collaboration in these environments is fueling a reliance on AV. Corporations are hosting more events and they have become larger in scale, with very high production values. Approximately $2.75 billion was spent on rental and staging services in 2006, representing nearly one quarter of all funds spent on AV services.
The only market that appears to be approaching its saturation point is the house of worship market, due to reduced construction in this sector. Most existing mega-churches have already invested in high-end audiovisual equipment.