Opinion
Research EMEA supply side for professional
systems drops to $65 bn in 2020 According to AVIXA, the professional market for AV / IT systems in EMEA which includes workplace and collaborative solutions, digital signage and monitoring sys- tems will decline to $65 million this year – not surprising but nonetheless disap- pointing following growth in previous years.
Following a rise to $71 billion in 2019, the Europe, Middle East, and Africa (EMEA) pro AV market is set to fall by 9% in 2020 to $65 billion as COVID-19 impacts regional econo- mies, according to the new 2020 AV Industry Outlook and Trends Analysis (IOTA) EMEA Summary produced by AVIXA, the Audiovisual and Integrated Experience Association. However, the region will mount an extended recov- ery starting in 2021, with revenue set to return to its 2019 level in 2022, hitting $71.5 billion. The industry will continue to swell, reaching $81 billion in 2025.
“Reeling
“The pro AV industry and economies at large are reeling from the effects of COVID-19. The pandemic has broad- ly impacted the near-term and lon- ger-term outlooks for economic growth and business activity in the EMEA re- gion, spurring reductions in our fore- cast,” said Sean Wargo, Senior Direc- tor of Market Intelligence, AVIXA. “But recovery is in sight. Growth for pro AV in EMEA will far exceed the expansion of the regional economy, with the in- dustry growing in the range of 5.1% to 4.8% in the coming years.” Western Europe leads pro AV revenue for EMEA, with 39% of the regional revenue - a share that will largely hold steady through 2025. Western Europe is forecast to hit $25.3 billion in 2020 and reach $30.6 in 2025. The smaller sub-Saharan Africa market will gener- ate the strongest growth in the region, with a 6% CAGR from 2020-2025, growing from $1.7 billion to $2.2 bil- lion during that time. The Central Eu- ropean pro AV market is set to expand to $12.5 billion in 2025, rising at a CAGR of 5.8% from $9.4 billion in 2020. In EMEA, the media and entertain- ment market stands out among the pro AV industries for its relatively strong
12 performance during the COVID-19
crisis, with revenue declining by only 5.6% in 2020 and rising by 8.5% in 2021. The consumption of digital con- tent from mobile apps to TV and gam- ing has sharply increased during the pandemic. This gives rise to produc- tion, storage, and distribution equip- ment, software, and services.
Growth markets
In the era of increased cyberthreats and nationalistic outlooks, the mili- tary and defence industry is expected to invest heavily in pro AV technolo- gy in the mid-to-long-term, driving growth from $3.6 billion in 2020 to $4.4 billion in 2025. Government and military, education, and corporate will generate the most demand for secu- rity, surveillance, and life safety solu- tions during the short and long terms as they seek to update their infrastruc- ture to handle the needs of monitoring and responding to the pandemic. Digital signage growth will be driven by an increased need for on-premises and out-of-home (OOH) communica- tions, especially for security and new health protocols. The functionalities of digital signage merge with those of surveillance and security. This is ap- plicable to both employee-facing and customer-facing situations. For exam- ple, surveillance cameras already in place will be augmented by AI, soft- ware, and displays and used for busi- ness analytics for assessing customer journey, tracking, and heat-mapping. Looking at the ranking of pro AV solu- tions in EMEA from 2020 to 2025, conferencing and collaboration leads the region thanks to the prevalence of work from home. Revenue will increase at a CAGR of 2.6% during this time. Spending will continue to increase in this area as legacy infrastructure gives way to the cloud. Cloud traits such as flexibility, scalability, ease of use, and cost effectiveness will help drive
Government and military, education, and corporate will generate the most demand for security, surveillance, and life safety solutions during the short and long terms
collaboration in the short- and long- terms.
Methodology
The IOTA report is produced by AVIXA in conjunction with Omdia (formerly IHS Markit), a global research firm with expertise across a number of un- derlying supply chain markets, many of which overlap with the principal components of the pro AV industry. This specialization provides connec- tions with manufacturers, distributors, integrators, and larger end user firms that provide and consume pro AV prod- ucts and solutions. This translates into sources of data that are modelled in conjunction with key macroeconomic data to generate the forecasts shown. To learn more about the 2020 AV In- dustry Outlook and Trends Analysis (IOTA) EMEA Summary, visit www.
avixa.org/IOTA. The IOTA Industry Overview, which explores the global trends within the pro AV industry, and the IOTA Americas Summary and IOTA Asia Pacific Summary are available now for purchase.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24
