The low-latency AV over IP market is showing signs of renewed growth, after a slowdown in demand during 2020 and 2021. That’s according to a new market report from Futuresource Consulting, which forecasts 10% revenue growth for 2022.
“It’s been a tough few years for the pro AV industry as a whole,” says Chris Pennell, Principal Analyst, Futuresource Consulting, “and the pandemic hit at a time when many enterprises were poised to replace their traditional signal distribution technologies with IP-based units. Many have now elected to take a gradual approach to change, as they work through wider issues impacting their ability to do business.
“But last year we saw a flash of promise, and some single-digit growth began to push through. Now we’re seeing a number of encouraging signs that AVoIP is gearing up for a sustained period of high growth.”
According to Futuresource, 1G will continue to form the backbone of AVoIP implementations, accounting for almost nine in every ten deployments. 10G’s share will see very little change over the next five years, stabilising at around 12%.
“Diving into the 1G detail, as the codec battle plays out, our research shows proprietary 1G commands around 90% of the 1G market,” says Pennell, “with HDBaseT Specification 3.0 at 10% share. While sources have said that there are some pre-standard versions of IPMX being shipped, their impact to date has been insignificant.”
The corporate sector remains the biggest market for AVoIP. In 2021 Futuresource expects the sector to have accounted for 112,000 units, which is forecast to grow to 352,000 units by 2026, a CAGR of 63%.
“Despite all the positive signs and the growing buzz around AVoIP, industry players cannot afford to sit back and enjoy the ride,” says Pennell. “There’s still a significant amount of effort required to build awareness, improve education and encourage a preference for the AVoIP category. Many of the features, advantages and benefits are still under-appreciated. Longer term, AVoIP will head to the moon once true convergence between IT and AV is realised. Yet, for now, the two are largely siloed in separate infrastructures.”
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