"Those who have followed AVIXA's previous projections will notice that the new estimates represent an upward revision," commented Sean Wargo, Senior Director of Market Intelligence at AVIXA. "The increase in the new projections reflects strong economies and demand for new products and services. The increase in revenue from professional audiovisual services is actually exceeding expectations for gross domestic product growth.".
For the first time, the new IOTA report includes additional data from distributors and integrators to track the amount of markup applied by the professional AV channel over the manufacturer's price. In 2019, markups were projected to represent an additional $22 billion in revenue globally, before accounting for service revenue.
“The story of professional audiovisual services is ultimately one of the added values that distributors and providers offer in creating exceptional experiences from the raw materials of AV products,” Wargo notes. “This story isn’t complete without considering this value in the profit margins applied by the channel, since they supply and optimize the hardware along with the services. Now, AVIXA takes this into account more accurately in its channel revenue estimates.”.
Until the last report, the Americas region had been positioned as the region generating the most revenue from audiovisual services. The new projection shows that in 2019, the Asia-Pacific region surpassed the Americas. The Americas accounted for $89 billion in revenue in 2019, compared to $90.6 billion for Asia-Pacific. This difference could reach $15 billion by 2024. APAC's growth is driven in part by demand for security, surveillance, and life-protection solutions in the region, which in turn is fueling growth in the streaming media storage, distribution, and delivery (SMSD) segment. The SMSD segment is projected to expand and achieve a compound annual growth rate (CAGR) of 10.5% in the Asia-Pacific region between 2019 and 2024.
The professional audiovisual market in the Americas is expected to continue growing, albeit at a slower pace than in Asia-Pacific (APAC). With a compound annual growth rate (CAGR) of 4.7%, the Americas are projected to reach $112 billion in revenue by 2024. The corporate segment will be a significant driver of audiovisual market growth in the region, with revenue increasing at a CAGR of 4.2% between 2019 and 2024. The shift to private, public, and hybrid cloud deployments from exclusively on-premises solutions is fueling much of this growth. Research also indicates growth in markets for environmental systems and performance and entertainment solutions.
Meanwhile, Europe, the Middle East, and Africa (EMEA) will experience moderate growth of 4.5% by 2024, despite short-term economic challenges. The region will generate the largest share of audio equipment revenue among the three regions and is expected to surpass the Americas in this segment, reaching $6.7 billion in 2024. Revenue from video display media, particularly LED direct-view systems, will experience considerable growth in EMEA. This product segment is projected to grow by 8.4% in the region over the next five years. The largest source of revenue for professional AV services in the region is the corporate market. Although corporate market revenue in EMEA is lower than in other regions, this $18 billion market represents a very significant portion of the professional AV segment in EMEA.
The IOTA report was produced by AVIXA in conjunction with IHS Markit, an insights and intelligence firm. The research methodology includes input from manufacturers, in the form of both qualitative and quantitative guidelines on size and growth within various product categories. Interviews and additional data collection from distributors, integrators, and end users help determine product segmentation into solutions and markets. The research methodology also helps verify product flow, the proportional profit margin applied by vendors, and value-added services sold.
