Fairfax, VA (July 15, 2020)—The global Pro AV industry reached a peak of $259 billion in 2019, according to a new report released by AVIXA, the Audiovisual and Integrated Experience Association. That feat will not be repeated in 2020, but the organization predicts an explosive rebound in the coming years.
Nonetheless, 2020 will still be a bitter pill for the industry to swallow, as it continues to grapple with the global pandemic. The organization expects the global industry to decline roughly $20 billion dollars to $239 billion this year. As outlined in its new 2020 AV Industry Outlook and Trends Analysis (IOTA) report, which explores global trends within the Pro AV industry as well as five-year forecasts for product- and service revenues, we can expect to see the industry recover to pre-COVID levels by 2022, and grow to an anticipated $315 billion by 2025.
While 2019 will momentarily stand as a peak for pro AV, the expected numbers for 2025 will represent a 5.8% five-year compound annual growth rate (CAGR), driving industry revenue $56 billion beyond its 2019 level.
“The COVID-19 pandemic has broadly impacted the near and longer-term outlooks for economic growth and business activity. Those who have followed AVIXA’s previous forecasts will note the new estimates represent a significant downward revision,” said Sean Wargo, senior director of Market Intelligence, AVIXA. “Regions and industries are being impacted at different degrees and are on different timetables for recovery. For example, Asia-Pacific will weather 2020 better than others, because it was the first to be impacted by COVID-19 and the first to re-open its economies.”
Indeed, the IOTA report finds that APAC will have the strongest growth of all regions, with a 7.4 percent CAGR through 2025 as compared to 4.7 percent for the Americas and 4.5 percent for EMEA. In 2025, APAC pro AV revenue will amount to $126 billion, compared to $108 billion for the Americas and $81 billion for EMEA.
The corporate market continues to be the single largest application area for pro AV products and services, capturing $52 billion in revenues globally in 2020. Conferencing and collaboration solutions, key to meeting spaces in corporate or other markets, remain the largest solution area, generating $38 billion globally in 2020, with AVIXA predicting an impact from work-from-home corporate models fostering increased need for remote collaboration solutions.
However, according to AVIXA, the fastest-growing solution of all is security/surveillance/life safety, with an 11.4 percent CAGR, powered by government and military, education, and corporate demand, due in part to pandemic response.
Among product segments, streaming media, storage and distribution (SMSD) is projected to be the single largest component of pro AV revenues, generating $68.5 billion in 2020. SMSD includes all the generic and specialty servers and storage used to manage AV content in the back end.
The IOTA report is produced by AVIXA in conjunction with Omdia (formerly IHS Markit), a global research firm.
AVIXA • www.avixa.org