State and Future of the AV Industry


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Scottsdale Roundtable Presentation “State & Future of the AV Industry”

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  • I think there are two messages here: The impact of external economic conditions vary around the world. Overall the US, Europe and the Middle East were more impacted by the economic crisis than Asia-Pacific and Latin America but the impact was extreme in some areas. For example Dubai had been growing at a CAGR of 12% and dropped to 0 in less than a year. The UK market was closely tied to the financial sector which dramatically slowed in late 2008 and 2009. What makes up the ProAV market. I’ve sited several examples above. In the US Services drive the market, while also important in Europe they are most important in Western Europe and did not grow very much from 2006 to 2009 as a percentage of revenue. In Eastern Europe and much of Asia-Pacific and Latin America the focus is on products and their prices. In the US 82% of the sales came from system sales rather than individual products. Karaoke is a major market in Northern Asia and Residential is a disproportionate part of the ProAV market in Central America relative to the rest of the world.
  • 7 th Snapshot in a series, data from 700+ AV providers and nearly 200 end users in 40 countries, broadest global sample to date, slightly surpassed expectations in Oct 10 and projected IPI sets a new high
  • Feb 2011 IDI slightly surpasses forecast in Oct 2010. IDI has climbed significantly from its low mark of 45.3 in October 2009.
  • State and Future of the AV Industry

    1. 1. Regional Roundtable Scottsdale January 20, 2011
    2. 2. Agenda State & Future of the AV Industry Marc Bialek, Membership Development Manager, InfoComm International How Fit is Your Sales Force? Best Practices in Sales Force Effectiveness Paul Vinogradov, Vice President, The Alexander Group, Inc. Break Roundtable Discussions What issues are AV pros facing? How can InfoComm help? Reception
    3. 3. Scottsdale Regional Roundtable
    4. 5. Key Findings <ul><li>Global pro-AV market grew from $54 billion in 2006, $68 billion in 2009, projected $91 billion by 2012 </li></ul><ul><li>North America is largest pro-AV market, comprising 45% of the global market in 2009 or $30.3 billion </li></ul><ul><li>North America and Europe are expected to grow 9% between 2009 and 2012 </li></ul>
    5. 6. Global Pro-AV Market
    6. 7. Pro AV Market Growth Rates <ul><li>All markets are expected to show strong growth through 2012 </li></ul><ul><li>Growth of the Asia-Pacific region would be 15% 2009-12 if you exclude the mature Japanese market </li></ul><ul><li>The smaller/younger markets are expected to see the fastest growth, Latin America 14%, Middle East/Africa 13% </li></ul>
    7. 8. Pro-AV Market Growth Rates * Projected
    8. 9.
    9. 10.
    10. 11. Apples and Oranges <ul><li>Regional market drivers make direct comparisons difficult </li></ul><ul><ul><li>U.S., Europe and Middle East more heavily impacted by global economic downturn than Asia-Pacific and Latin America </li></ul></ul><ul><ul><li>North America receives 55% of its revenue from Services compared to 22% in Asia-Pacific </li></ul></ul><ul><ul><li>Residential and Hospitality sectors are very important in Central America and the Caribbean </li></ul></ul><ul><ul><li>Karaoke accounts for nearly 50% of the Asia-Pacific Venues/Events category revenue </li></ul></ul>
    11. 12. Pro AV Market by Product <ul><li>Fastest growing product categories are displays, AV conferencing equipment, streaming media & webcasting and wireless connections & software </li></ul><ul><li>Increasing demand for directional speakers and cone speakers in digital signage applications to create an immersive experience for the consumer </li></ul><ul><li>Digital signage, videoconferencing and digitized high-end audio systems will continue to drive growth for the 2009-12 </li></ul><ul><li>Control systems have the potential to expand the reach of the AV industry </li></ul>
    12. 13.
    13. 14. Pro-AV Market by Services <ul><li>Services represent 38% of the global market </li></ul><ul><li>Pro AV services growing faster than products in all regions </li></ul><ul><li>Services represent more than 50% of North American market for the first time, followed by Europe, 35% </li></ul><ul><li>Installation and integration represent over 50% of pro-AV services revenue, fastest growing services are programming, maintenance & training </li></ul>
    14. 15. Pro AV Market by Services The fastest growing services are programming, maintenance and training. *Projected
    15. 16.
    16. 17. Pro AV Market by Customer <ul><li>Two corporate segments together account for 28% of the global pro-AV market </li></ul><ul><li>The fastest growing customer segments are education, government, corporate and hospitality </li></ul><ul><li>The slowest growing segments are rental/staging companies, home/residential and retail/distribution </li></ul>
    17. 20. Economic Snapshot Latest Report Released February 2, 2011 Webinar
    18. 21. InfoComm Performance Index (IPI) <ul><li>Examines company performance of past 6 mos. </li></ul><ul><li>Company expected performance next 6 mos. </li></ul><ul><li>Does not use hard numbers </li></ul><ul><ul><li>Stresses perceptions </li></ul></ul><ul><li>Performance is rated on a scale of 10-100 </li></ul>10 100 Bankruptcy Record Profits & Growth
    19. 22. InfoComm Performance Index (IPI) Past Six Months Next Six Months September 2008 70.4 71.0 January 2009 70.8 64.6 June 2009 59.4 63.1 October 2009 57.1 63.8 February 2010 63.6 69.9 October 2010 64.5 68.9 February 2011 69.9 74.3
    20. 23. InfoComm Demand Index (IDI) Past Six Months Next Six Months <ul><li>100 </li></ul><ul><li>Zero AV Spending Record AV Spending </li></ul>October 2009 45.3 47.4 February 2010 54.5 53.9 October 2010 62.3 61.5 February 2011 62.8 62.7
    21. 24. Break
    22. 25. 7 Things You Need to Know <ul><li>1. Webinars – 2011 Series </li></ul><ul><li>2. Outreach (Lunch & Tours, AV Week) </li></ul><ul><li>3. InfoComm Community </li></ul><ul><li>4. Member Benefit Programs </li></ul><ul><li>5. Volunteer </li></ul><ul><li>6. Awards </li></ul><ul><li>7. End User Conferences </li></ul>
    23. 26. 1. Webinars <ul><li>February 2: Highlights from InfoComm’s Latest Economic Snapshot Survey </li></ul><ul><li>February 9: Sneak Peak of InfoComm Academy Training at InfoComm 2011 </li></ul><ul><li>February 16: CEO Series – Boxes to Net-Centric AV </li></ul><ul><li>February 23: CEO Series – The Manager as Coach </li></ul><ul><li>March 2: CEO Series – Generations in the Workplace </li></ul><ul><li>March 9: CEO Series – Managing Transitions </li></ul><ul><li>March 16: TBD </li></ul><ul><li>March 23: Digital Signage Business Planning: Content Creation </li></ul><ul><li>March 30: Digital Signage Business Planning: Scheduling </li></ul><ul><li>April 6: Digital Signage Business Planning: Network Management </li></ul><ul><li>April 13: Business Development: Best Practices in Sales Force Effectiveness </li></ul><ul><li>April 20: TBD </li></ul><ul><li>April 27: Business Development: Business Insurance </li></ul><ul><li>May 4: How To Make the Most of InfoComm 2011 for Attendees </li></ul><ul><li>July 13: AV Week Webinar: Ways Your Company Can Celebrate AV Week </li></ul>
    24. 27. 2. Lunch & Tours <ul><li>6 Lunch & Tours a year </li></ul><ul><li>Presentations and Facility Tours to the Architect and Building Community </li></ul><ul><li>Architects receive 2 AIA/CES Learning Units </li></ul>
    25. 28. 3. InfoComm Community <ul><li>AV Week 2011 eGroup </li></ul><ul><li>Building Information Modeling (BIM) eGroup </li></ul><ul><li>Classroom Technology eGroup </li></ul><ul><li>Device Programming eGroup </li></ul><ul><li>Digital Content Creation and Delivery eGroup </li></ul><ul><li>Digital Signage </li></ul><ul><li>Green AV </li></ul><ul><li>Women in AV </li></ul><ul><li>Etc… </li></ul>
    26. 29. 4. Member Benefit Programs <ul><li>Business Insurance – Take 1 </li></ul><ul><li>Debt Collection Solutions – NCSPlus </li></ul><ul><li>Discount Shipping Program – PartnerShip </li></ul><ul><li>Full Service Marketing – Eclipse Marketing </li></ul><ul><li>Office Supplies – OfficeMax </li></ul>
    27. 30. 5. AV Week 2011 <ul><li>October 16-22, 2011 </li></ul><ul><li>AV Week Toolkit </li></ul><ul><li>Member Workshops </li></ul><ul><li>Presentations </li></ul><ul><li>Career Fairs </li></ul><ul><li>Open Houses </li></ul><ul><li>Spotlighting the AV Industry Worldwide </li></ul>
    28. 31. Roundtable Discussions … ..what are the top three issues facing the AV industry today? … ..what can you suggest your association do to help? From your perspective…
    29. 32. <ul><li>Thank You </li></ul><ul><li>for being a member </li></ul><ul><li>and supporting </li></ul>