Report: One million digital signs in North America by 2009

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. 60 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 percent 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 business, AV has been elevated from technology that is nice to have to technology that is mission-critical," said Lemke.