International. The professional audiovisual industry will grow from US$186 billion in 2018 to US$230 billion by 2023, according to forecasts updated in the 2018 version of the industry report and Trend Analysis, IOTA, conducted by AVIXA.
This report examines the forces driving growth, from macroeconomic factors to technology trends and vertical market demands, on a global scale.
"There are many changing parts within the AV industry, it is important to pause and take the temperature of the market. Based on our research, we expect compound annual growth of 4.3% from 2018 to 2023, which is in line with our previous estimates. Regions around the globe are growing, with Asia poised to take the lead as the largest market, capturing 36% of the pro-AV market by 2023."
The IOTA report was produced for AVIXA by IHS Markit, an intelligence and knowledge firm. The research methodology was based on the combination of supply-side market size with demand-side market requirements, which were then aligned with macroeconomic factors and inputs.
Highlights of the 2018 report include:
Macroeconomic factors: While industries and economies in general are flourishing, trade policies and protectionist views are acting in some way as obstacles. Uncertainties related to Brexit, as well as the outcome of Brazil's upcoming elections, low oil revenues and the fiscal deficit lead to the decline of the pro-AV industry. Factors leading to growth include Europe's real GDP rising from 1.9% in 2016 to 4% in 2017, new emerging manufacturing hubs in Southeast Asia and South Asia, and the improvement of the U.S. economy from fiscal stimulus and strengthening trade investment.
Technology trends: The five tech trends at the top of the list as growth drivers are audio advancements, future displays, IoT for smart buildings, IT and the cloud, and artificial intelligence. Asia-Pacific and the Americas lead technological advances, but face similar commoditization challenges, while Europe is less affected by both trends.
Solution Packages: The integration of technologies is what differentiates the pro-AV industry from others because many of the technologies, products and services for capturing, processing, storing and viewing audio and video are similar in different applications. The best solutions include conferencing and collaboration, learning, live events, digital signage, security and surveillance, and entertainment.
Vertical market demands: Although the corporate market represents the soul of professional AV, smaller markets, many of which focus on the consumer experience, have the greatest potential for growth. For example, from 2018 to 2023, the healthcare market will grow by 10%, from US$2.4 billion to US$3.9 billion; hospitality will grow by 7%, from US$7 billion to US$9.4 billion.
The IOTA Analysis 2018 is published as a series of reports, including a global report and three regional reports, in addition to a series of reports highlighting specific segments of the audiovisual industry. Global, Americas, Asia-Pacific and Europe reports are now available for purchase, with discounts for AVIXA members. For more information, visit https://avixa.org/IOTA
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