AV Industry and Trends Analysis (IOTA) report predicts the global pro AV industry is set to decline from US$259 billion in 2019 to US$239 billion in 2020 due to the Covid-19 pandemic. However, the 2020 IOTA also shows the industry regaining its pre-Covid levels in 2022 before growing to US$315 billion in 2025, a 5.8% five-year compound annual growth rate (CAGR), driving revenue of US$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,” said Sean Wargo, senior director of market intelligence, AVIXA. “Those who have followed AVIXA’s previous forecasts will note the new estimates represent a significant downward revision. 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.”
A 7.4% CAGR is forecast for APAC for the five-year period, compared to 4.7% for the Americas and 4.5% for EMEA. In 2025, APAC pro AV revenue will amount to US$126 billion, compared to US$108 billion for the Americas and US$81 billion for EMEA.
The corporate market – capturing US$52 billion in global revenues in 2020 – remains the largest for pro AV products and services. Although a much smaller revenue opportunity at US$7.3 billion, the energy and utility business will generate much higher growth, with revenue rising at a CAGR of 10.4% due to investments in smart grid and sustainable energy sources.
Conferencing and collaboration remain the largest solutions area, generating US$38 billion globally in 2020. As employees return to work in a limited capacity, AVIXA analysts anticipate more need for collaboration among on-premise and remote working. The fastest-growing solution with an 11.4% CAGR is security/surveillance/life safety, with government and military, education and corporate generating the most demand due in part to pandemic response, and city surveillance a significant market for security cameras.
Among product segments, streaming media, storage and distribution (SMSD) is projected to be the single largest component of pro AV revenues, generating US$68.5 billion in 2020, at 9.6% growth, one of the highest of the categories.
The 2020 IOTA report, produced by AVIXA in conjunction with global research firm Omdia, can be found at avixa.org/IOTA. Regional IOTA reports for the Americas, APAC and EMEA will be released in the coming months. Pro AVL Asia