Sluggish Pro AV Market Growth Reported in AVIXA Analysis Against a Soft Economic Backdrop
Pro AV Market Projected for Robust Growth, According to AVIXA's 2024 IOTA
The Pro AV market is set for continued robust growth, with AVIXA's 2024 Industry Outlook and Trends Analysis (IOTA) predicting a value of approximately $422 billion by 2029. This growth trajectory, which includes 2025, is driven by key trends such as AI integration, cloud computing, and expanding market demands across various sectors.
In the current year, data suggests a steady but cautious growth for the Pro AV industry. The AV Sales Index (AVI-S) has accelerated from 56.6 to 58.7 in July, indicating a positive trend. However, this growth is moderated by economic uncertainties, tariffs, pricing increases, and supply chain challenges, particularly in North America.
The AV Employment Index (AVI-E) stands at 57.7, 57.1, and 57.5 in the last three months, respectively. This index, while showing growth, is roughly in line with what was normal pre-pandemic but on the low side. The current level of the AVI-E and AVI-S can be seen as a signal of moderate expansion.
Economically, the second quarter of 2023 saw a 0.1% GDP decline in Germany, indicating contraction. On the other hand, the EU expanded by 0.3% in the second quarter, with an annualized rate of 1.2%. The U.S. economy, however, experienced Q2 GDP growth at an annualized rate of 2.8%, up from 1.4% in the first quarter and beyond the forecast of 2.1%.
The U.S. July jobs report was disappointing, with unemployment moving up to 4.3% and the economy adding 114,000 jobs. This suggests that the U.S. economy is softening and not currently expanding at a strong rate. The expected payroll expansion was 175,000 jobs, and the economy is currently averaging less in normal times.
In contrast, China's GDP grew 0.7% in the second quarter, which is below both the 1.5% growth for Q1 and the forecast of 1.1%. This indicates a slowdown in China's economic growth.
Despite these economic challenges, the AVIXA IOTA shows 2024 as a lower growth year before reacceleration in 2025. The current economic conditions are described as tepid, indicating expansion below what would be expected in a healthy economy.
The AVIXA Insights Community, a research community of industry members, tracks business trends in commercial AV. This community's research and analysis provide valuable insights into the Pro AV market's growth and trends.
In light of the tepid economic conditions, the $422 billion value of the Pro AV market by 2029, as projected by AVIXA's IOTA, may depend significantly on the finance sector's ability to support the business growth in the Pro AV industry. Despite the economic challenges, the AVIXA Insights Community, a research community of industry members, continues to track business trends in commercial AV, providing valuable insights into the Pro AV market's growth and trends.
