InfoComm International Audiovisual (AV) Audiovisual Industry Experiences Record Growth

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Audiovisual Industry Experiences Record Growth

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By InfoComm International� - June 20, 2007

Networked applications drive demand; transition from box sales to full system installation doubles market size

ANAHEIM, Calif. -- A new study by Acclaro Growth Partners has determined audiovisual products and services comprise a $25 billion industry in North America. The AV Industry Market Definition and Strategy Study, conducted on behalf of InfoComm International, forecasts 11 percent growth in the audiovisual industry over the next two years. 

The growth of digital signage, videoconferencing, and command and control facilities has resulted in a 30 percent growth in demand for AV services over the past three years. The boom in construction and building renovations is the leading driver of demand for audiovisual products and services, as AV is now considered an integral part of designing and outfitting buildings. Sixty percent of AV goods and services are purchased as part of a new construction or major renovation projects. 

"The past several years has marked a period of unprecedented growth for the audiovisual industry," said Randal A. Lemke, Ph.D., Executive Director, InfoComm International, the trade association representing the audiovisual industry. "This decade has seen an insatiable demand for control systems, projectors, displays, videoconferencing systems, digital signage, sound reinforcement and more. As AV products started operating over IP networks, the industry has changed focus from box sales to integration of complete interoperating systems. Even as the price of AV technology dropped, revenues have increased due to the critical importance of collaboration and communication in business and beyond." 

Interest in large screens and high-definition televisions is creating increased growth in the display market. HDTVs are growing more than twice as quickly as the overall display market.  Improvements in picture quality have also increased interest and sales in high definition videoconferencing products and services. The demand for videoconference equipment and services is expected to increase by an additional 20 percent between 2007 and 2009.

Digital signage has grown explosively over the past few years, with industry experts estimating a growth rate of 10 percent per month. More than one million digital signs are expected to be found in North America by 2009. The financial services, government, education, retail, healthcare and transportation sectors are implementing digital signage to deliver information, live and on-demand video and more to key audiences. Over the next three years, corporate officials estimate that 45% of corporate AV budgets will be spent on digital signage and videoconferencing goods and services.

Contracts for service and maintenance of audiovisual systems are also growing. Three years ago most AV integrators did not offer these services, or they offered basic maintenance contracts that would be considered extended warranties. But as the complexity of AV systems has grown, end-users have expressed a growing need for service contracts. "Interest in ongoing maintenance of audiovisual systems reflects that in government, education and the business, AV has been elevated from technology that is nice to have to technology that is mission-critical," said Lemke.

The government, corporate and education markets are the three largest consumers of audiovisual products and services. The growing need for communication and collaboration in these environments is fueling a reliance on AV. Growth in demand for rental and staging activities over the last three years has been a direct result of a positive economy. Corporations are hosting more events and they have become larger in scale, with very high production values. Approximately $2.75 billion was spent on rental and staging services in 2006, representing nearly one quarter of all funds spent on AV services.

The only market that appears to be approaching its saturation point is the house of worship market, due to reduced construction in this sector. Most existing mega-churches have already invested in high-end audiovisual equipment.

The findings of The AV Industry Market Definition and Strategy Study were released at InfoComm 07, the world's largest professional audiovisual exposition and tradeshow. The study can be purchased at www.infocomm.org.

About InfoComm International

InfoComm International is the international trade association of the professional audiovisual and information communications industries. Established in 1939, InfoComm has 4,200 members, including manufacturers, systems integrators, dealers and distributors, independent consultants, programmers, rental and staging companies, end-users and multimedia professionals from more than 70 countries. InfoComm International is the leading resource for AV market research and news. Its training and education programs, along with its separately administered Certified Technology Specialist (CTS) and corporately administered Certified Audiovisual Solutions Provider (CAVSP) company credentials, set a standard of excellence for AV professionals. InfoComm International is the founder of InfoComm, the largest annual conference and exhibition for AV buyers and sellers worldwide. InfoComm also co-sponsors the Integrated Systems shows in Europe and Russia and the InfoComm Asia shows incorporating Integrated Systems China and Asia. Additional information is available at www.infocomm.org.

About Acclaro Growth Partners

Acclaro Growth Partners is a premier strategic research and business consulting firm that assists proAV manufacturers and service providers with primary research-based market intelligence, market growth and profitability strategies, as well as short and long range strategic and implementation planning. Acclaro provides ground truth, actionable market intelligence and strategy reports that help businesses and industries plan their sales and marketing efforts.           

Contact:
Betsy Jaffe
Public Relations Director
703-279-6385
bjaffe@infocomm.org