Avixa: Global Pro-AV Industry to Grow to $230 Billion by 2023

The professional AV industry will grow from $186 billion in 2018 to $230 billion by 2023, according to Avixa. The new report examines the forces driving this growth on a global scale, from macroeconomic factors, to technology trends and vertical market demands.

Senior Director of Market Intelligence, Sean Wargo, commented:

Sean Wargo 300x300 copyThere are many shifting pieces within the AV industry. It’s important to pause and take the market’s temperature. Based on our research, we’re expecting compound annual growth to be 4.3% from 2018 to 2023, which is in-line with our previous estimates. Regions around the world are growing, with Asia poised to take the lead as the largest market, capturing 36% of the pro-AV market by 2023”.

Macroeconomic Factors: While industries and economies are generally flourishing, trade policies and protectionist views are acting somewhat as headwinds. Uncertainties related to Brexit, as well as the outcome of Brazil’s upcoming election, low oil revenues and fiscal deficit lead to declines for the pro-AV industry. Factors leading to growth include Europe’s real GDP increasing from 1.9% in 2016 to 4% in 2017, new manufacturing hubs emerging in Southeast Asia and South Asia and improvement in the US economy from fiscal stimulus and strengthening business investments.

Technology Trends: The five technology trends rising to the top of the list as drivers of the growth are audio advances, future displays, IoT for smart buildings, IT and the cloud, and artificial intelligence. Asia/Pacific and the Americas lead in technology advancements but face similar challenges of commoditisation, while Europe is less impacted by both trends.

Solution Bundles: The integration of technologies is what differentiates the pro-AV industry from others because many of the technologies, products and services for audio and video capture, processing, storage and displays are similar across different applications. The top solutions include conferencing and collaboration, learning, live events, digital signage, security and surveillance, and performance and entertainment.

Vertical Market Demands: Although the corporate market represents the lifeblood of professional AV, smaller markets, many of which focus on the consumer experience, have the greatest growth potential. For example, from 2018 to 2023, the healthcare market will grow 10% CAGR, from $2.4 billion to $3.9 billion, while hospitality will grow 7%, from $7 billion to $9.4 billion.