Content
Pro AV revenue down 17% in 2020, but 5-year outlook positive
July 2, 2021
After peaking at $259 billion in 2019, pro AV industry revenue dropped to $214 billion globally in 2020 due to the COVID-19 pandemic, according to the new 2021 AV Industry Outlook and Trends Analysis released by AVIXA, the Audiovisual and Integrated Experience Association.
IOTA forecasts revenue will reach $232 billion in 2021 and grow to $329 billion in 2026, representing a 7.2% compound annual growth rate. Digital signage is poised for strong revenue growth, with a forecast of $32 billion in 2021, increasing to $44.7 billion in 2026. The signage market had strength going into the pandemic, as display prices encouraged proliferation. Media servers are the leading product category for digital signage—with $6.9 billion in revenue in 2021.
"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. 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," Sean Wargo, senior director of market intelligence, AVIXA said in the report. "The good news is we are now seeing meaningful recovery, and so strong growth dominates our revised estimates going forward."
Overall, pro AV revenues were the least impacted in the Asia-Pacific region. Having taken preemptive measures for COVID-19 early and effectively, China significantly recovered during the first half of 2020. Overall annual growth for AV spending in Asia-Pacific registered at -16.1%, resulting in revenues of $78.8 billion and contributing 37% of global spending.
The Americas pro AV market dropped by 16.7%, to $77.6 billion in 2020, somewhat bolstered by a strong first quarter in 2020. A strong recovery is expected, with 2021 revenues rising to $83.6 billion.
The Europe, Middle East, and Africa region was the hardest hit due to more challenged economies going into the pandemic and many factors affecting recovery. 2020 spending on pro AV in the region declined by 19.7% to $57 billion.
Across all product areas, conferencing and collaboration generated the highest revenue as workers went remote, students participated in distance learning and events went virtual. The virtual market is predicted to generate $43.5 billion in 2021 and reach $49.9 billion in 2026, according to the report.
Overall, content management hardware, previously termed by AVIXA as streaming media, storage, and distribution, should generate significant revenue and growth over the next five years – $62.3 billion in 2021 with a CAGR of 10.4%, based on the report.
