Avixa IOTA study 2021: AV industry revenues rebound after falling 17%

Professional AV industry revenues fell by 17% in 2020, as collected Avixa in the studio IOTA 2021, but the five-year outlook is positive.

After reaching a maximum number of 259.000 millions of dollars in 2019, the income of the industria AV profesional were reduced to 214.000 million worldwide in 2020 due to the effects of the pandemic, according to data from the new study 2021 AV Industry Outlook and Trends Analysis (IOTA) that just presented Avixa (Audiovisual and Integrated Experience Association).

In this study of trends and perspectives of the audiovisual industry, the beginning of recovery is predicted in the present 2021, with income of 232.000 million and a sustained level of income that will reach 329.000 millions in 2026, which represents a compound annual growth rate (CAGR) of the 7,2%.

The IOTA study 2021 analyzes global trends within the professional AV industry, while providing an overview of Avixa's five-year revenue estimate for products and services, as well as the prevailing trends driving these forecasts.

As pointed out Sean Wargo, senior director of market intelligence at Avixa, “at the beginning of 2020 there was much optimism that initial lockdowns and other measures would help most regions overcome the worst of the pandemic, which would allow economies to recover and AV professionals to benefit. While this was true in some areas of Asia, but in much of the world AV professionals had a worse year than our initial forecasts indicated”.

Despite this, Wargo explains that “The good news is that we are now seeing a significant recovery, Therefore, our estimates for the immediate future are surrounded by the perception of solid growth.”.

Revenue by markets

In general, the income of AV professionals in the Asia Pacific region (APAC) were the least affected in 2020. After taking preventive measures for COVID-19 early and effectively, China recovered significantly during the first half of 2020.

The overall annual growth of investment in AV solutions in the APAC region registered a -16,1% compared to the previous year, with an income of 78.000 million dollars and a contribution from 37% of total global spending in the AV industry.

On the American continent, The professional AV market suffered a drop of 16,7%, with income of 77.000 million dollars in 2020, figure that was strengthened with the results of a solid first quarter in 2020, when the pandemic had not yet fully impacted the region.

However, for the present 2021 a strong recovery is expected, with an increase in income that will reach 83.000 billion dollars.

The Europe region, Middle East and Africa (EMEA) was the hardest hit due to the effects of the pandemic on some of the most unstable economies and other factors that created a variety of effects on the recovery rate. in this region, the expense of 2020 in professional AV products and solutions decreased by 19,7%, with income of 57.000 million dollars.

Conference and collaboration on the rise

Among all areas of the audiovisual industry, conferencing and collaboration solutions and products generated the highest revenue of the year, as most people became remote workers, students entered distance learning mode and events moved to the virtual environment.

The report predicts that these solutions will maintain this increasing pace and generate revenue 43.500 millions of dollars in 2021 and reach the 49.900 millions in 2026.

Digital signage

According to the IOTA report 2021 digital signage solutions segment poised for strong revenue growth, with a forecast of 32.000 millions of dollars in 2021, which will increase to 44.700 millions in 2026.

The digital signage market gained strength with the arrival of the pandemic, since the prices of screens encouraged their proliferation. According to the report, pent-up demand is observed, what will drive the solutions area in the immediate future.

For your part, Media servers are the leading product category for digital signage, con 6.900 million dollars in revenue today 2021.

In general, content management hardware, formerly referred to as Avixa streaming media, storage and distribution (SMSD: streaming media, storage, and distribution), will generate significant revenue and growth over the next five years: 62.300 millions of dollars in 2021, with a compound annual rate of 10,4%.

Live events and entertainment

For your part, The area of live events and solutions for the entertainment and presentation industry have been the most affected in 2020, with a combined annual decline of 49,7% of the income.

The report estimates that these solutions will have the slowest recovery to pre-pandemic levels, regarding the rest, due to continued restrictions and individual resistance to participating in events and joining crowds.

However, to 2026, live event solutions will generate 33.900 million dollars in revenue, while presentations and entertainment will reach 30.600 million.

The IOTA report has been prepared by Avixa in collaboration with Omdia (before IHS Markit), a global research firm specializing in supply chain markets, many of which overlap with major components of the professional AV industry.