Alice Chambers |
The professional audiovisual (AV) market is set to grow from $306 billion in 2023 to $325 billion in 2024, according to the Industry Outlook and Trends Analysis report by the Audiovisual and Integrated Experience Association (AVIXA). Though growth is slightly slower than the previous year, this increase reflects ongoing adjustments in the market as it stabilises after the Covid-19 pandemic.
“The growth rate of 6.1 per cent was down from 6.9 due to the end of a post-pandemic surge where buyers were making up for delayed buildouts,” explains Mike Sullivan-Trainor, senior industry analyst at AVIXA. “While the pandemic impacted everything, some effects were temporary, and others may be permanent. For example, the hybrid work environment is here to stay, especially in the USA, requiring a new approach to professional AV systems in the workplace. With the broad adoption and expansion of software and cloud-based platforms, the traditional AV equipment industry is experiencing reduced growth, and even flattening revenue for years to come.”
In recent years, AV equipment has become more complex due to the integration of cloud, artificial intelligence, and extended reality technologies, which require higher power, seamless connectivity, and sophisticated software management for real-time data processing and interactive experiences. As these technologies evolve, they bring new demands to various environments, including the hybrid office.
“Within this context, conferencing and collaboration features a new set of priorities – ease of use, openness and bring-your-own-device compatibility to name just a few,” says Sullivan-Trainor. “Organisations need to fulfil these requirements in all forms of the ‘office’, whether a conference room, small meeting room, or concentration zones for one or two people. Beyond that, the complexity of interactions, across projects, time zones, teams and partners, requires significant communications management. These requirements are a significant challenge for technologists. Fortunately, platforms such as Microsoft Team Rooms and Copilot automate much of the complexity and professional AV providers are either partnering to enhance Teams with audio and video fidelity solutions or creating their own adaptable platform and equipment combinations.”
Although incorporating AI and complex services into software and solutions will be challenging for AV providers, it will bring several new opportunities too, according to the AVIXA report.
“If AV providers continue to focus on standard products or services without adapting to new market demands, technological advancements or changing customer needs, they can expect revenue growth for collaboration and conferencing to decline to about one per cent by 2029, according to our most recent analysis,” says Sullivan-Trainor. “However, our findings also forecast better than 10 per cent annual revenue growth for providers who invest in platforms and services, particularly managed services. These solutions, along with key partnerships, can allow firms to evolve with the hybrid office space rather than be limited by it.”
AV providers must balance the need for innovation with the potential risks and costs associated with changes.
“To mitigate risks and costs, providers can partner with firms that have complementary competencies in platforms or services,” says Sullivan-Trainor. “They can also lean into their competencies to adapt solutions for the new requirements. The solutions need to be flexible to accommodate the kind of space in which they will be deployed, and they must be easy to install and use.”
AVIXA aims to continue monitoring market opportunities in growing AV sectors. “Our market intelligence closely tracks and analyses professional AV employment trends, allowing us to forecast the market for 2025 and the future beyond,” says Sullivan-Trainor. “We can also drill into subsegments of solutions and verticals to help guide AV professionals to develop adaptive strategies.”
Discover more insights like this in the Autumn 2024 issue of Technology Record. Don’t miss out – subscribe for free today and get future issues delivered straight to your inbox!