Avixa IOTA studio 2021: the AV industry picks up its revenue after falling a 17%

The revenue of the professional AV industry was reduced by a 17% in 2020, as collected Avixa in the studio iota 2021, but the five-year outlook is positive.

After reaching a maximum figure of 259.000 millions of dollars in 2019, the income of the professional AV industry were reduced to 214.000 millions 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) you just filed Avixto (Audiovisual and Integrated Experience Association).

This study of trends and prospects of the audiovisual industry predicts the beginning of the recovery in the present 2021, with revenue of 232.000 millions and a sustained level of income that will reach the 329.000 millions in 2026, representing 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 estimate of five-year revenue for products and services, as well as on the prevailing trends driving these forecasts.

As he points out Sean Wargo, senior director of market intelligence at Avixa, “at the beginning of 2020 there was a lot of optimism because 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 now see a significant recovery., so our estimates for the immediate future are surrounded by the perception of solid growth”.

Revenue by market

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 recorded a -16,1% compared to the previous year, with an income of 78.000 millions of dollars and a contribution from 37% of total global expenditure in the AV industry.

In the Americas, the professional AV market suffered a fall of the 16,7%, with revenue of 77.000 millions of dollars in 2020, figure that 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 strong recovery expected, with an increase in revenue that will reach the 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 expenditure of 2020 in professional AV products and solutions was reduced by a 19,7%, with revenue of 57.000 millions of dollars.

Conference and collaboration on the rise

Among all areas of the audiovisual industry, solutions and products for conferencing and collaboration 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 expects these solutions to maintain this upward 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 Is Ready for Strong Revenue Growth, with a prognosis of 32.000 millions of dollars in 2021, that will increase up to 44.700 millions in 2026.

The digital signage market gained strength in the face of the arrival of the pandemic, as screen prices encouraged their proliferation. According to the report, repressed demand is observed, which will boost the solutions area in the immediate future.

For its part, media servers are the leading product category for digital signage, with 6.900 millions of dollars in revenue at present 2021.

in general, content management hardware, formerly referred to by Avixa means of transmission, storage and distribution (SMSD: streaming media, storage, and distribution), generate revenue and significant growth over the next five years: 62.300 millions of dollars in 2021, with a cagr of 10,4%.

Live & Entertainment Events

For its 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 decrease of 49,7% of income.

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

However, for 2026, live event solutions will generate 33.900 millions of dollars in revenue, while those of presentations and entertainment will reach the 30.600 Million.

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

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