New Revenue Forecasts From AVIXA Reveal 5-Year Positive Outlook
In a time when the future prospects of any sector appear to change daily, AVIXA is out with real actionable intelligence for the AV industry and the news is good. The new 2021 AV Industry Outlook and Trends Analysis (IOTA) forecasts revenue will reach $232 billion in 2021 and grow to $329 billion in 2026, representing a 7.2% compound annual growth rate (CAGR).
According to the report, industry revenue peaked at $259 billion in 2019 but dropped to $214 billion globally in 2020 due to the pandemic. Sean Wargo, Senior Director of Market Intelligence for AVIXA, admits the worldwide lockdown's effect on AV was more detrimental than anticipated but the industry has adjusted as conditions have improved.
“Back in the early part of 2020, there was a lot of optimism that initial lockdowns and other measures would help get most regions through the worst of the pandemic, thereby allowing economies to rebound and pro AV to benefit," said Wargo. "While true in parts of Asia, this was not the case in much of the world and so pro AV fared even worse than our initial forecasts would indicate."
As vaccines roll out across the globe and their efficacy became apparent even against COVID variants, businesses are rapidly reopening to the public. Revenues have already noticeably rebounded in regions across the globe after experiencing declines ranging from 16 to nearly 20% last year.
“The good news is we are now seeing meaningful recovery, and so strong growth dominates our revised estimates going forward,” Wargo stated.
- With the updated IOTA report, AV professional decision makers seeking to understand the size, direction, and composition of the larger pro-AV industry have a lot to dig into, including intel like:
- Total projected size of the pro-AV industry from 2021 to 2026, as measured by estimated solutions revenues, or what end-user clients have paid for the AV-related products and services they receive.
- An analysis of the relative current health of AV markets in the Americas, Europe, Middle East, and Africa
- An examination of which technologies and industries will be driving AV over the next five years, including digital signage, conferencing and collaboration, content management hardware, and live events/performance/entertainment solutions.
- Industry estimates are built off of raw data submissions and guidance from a diverse set of manufacturers, distributors, integrators, and end-users across each of the major product areas.
- Segmentation of the data by geography, product segments, solutions areas, and vertical market, with extensive cross-tabulation possible. For example, users can find out which products are selling best within the various vertical markets expected to see the highest growth in China or the U.K.
- Geographic granularity is available all the way to the country level for larger GDP areas, such as the U.S., China, England, or Brazil.
- An analysis of the trends driving the growth, including outside industry factors like GDP growth, or broad technology drivers, such as commoditization and product evolution.
For a more in-depth analysis of AV product trends, solution categories, and vertical markets, explore AVIXA's IOTA report here.