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AVoIP Market Goes from Strength to Strength in 2018

AV Over IP Market Research, Analysis and Commentary

AV over IP (AVoIP) continues to attract attention in the low-latency Pro AV market, with global shipments of encoders and decoders growing significantly, according to a new industry report from Futuresource Consulting. Despite positive market developments and unrivalled growth, the technology has thus far failed to displace existing extension technologies en masse in low-latency Pro AV segments.

“We’re seeing a lot of developments around AVoIP solutions,” says Anthony Brennan, Analyst at Futuresource Consulting. “Shipments have increased more than 60% year-on-year and vendors are reporting significant volume growth but there continue to be a number of challenges plaguing vendors in the market.

“Yes, volume growth has been significant this year, there’s no doubt about it. Interest and demand are moving in the right direction, but AVoIP has fallen behind the high expectations of many in 2018, with solutions facing significant obstacles to mass adoption. The market is still in its early stages, with significant volume growth on the horizon.”

The 1G vs 10G Dilemma

1G and 10G solutions continue to battle it out, with 1G taking the lion’s share of the market. Extron’s market entrance with an offering that supports both 1G and 10G installations means that competition in this segment is expected to escalate.

“Our forecasts show both 1G and 10G solutions growing rapidly during the next five years,” says Brennan, “but the 1G market is significantly further along than the 10G space, with major vendors continuing to focus solely on the 1G segment and price point, bandwidth requirements, and the widespread availability of 1G networks helping grow shipments here.”

Developments in the Corporate Meeting Room

Corporate and higher education verticals are key growth opportunities for AVoIP, as businesses adopt innovative video distribution techniques across meeting rooms, and universities ramp up demand for AVoIP solutions. Despite substantial growth forecasted in these segments, wider developments in the meeting room are set to have a significant impact here, with the uptake in UC platforms and demographic shifts in the size of meeting rooms having the potential to dampen demand for video distribution.

These could impact demand in two key areas. Firstly, the corporate vertical is seeing growing interest and demand for UC to handle content sharing and communication between meeting rooms, thus lowering the desire for video distribution across companies. Secondly, meeting room design is shifting towards simplistic huddle rooms and small meeting rooms which require less extension and more simplistic AV setups. While this has yet to make a real impact on demand in this market, it is certainly a trend that vendors should be aware of.  


USA Leads the Way, China on the Rise

“Looking at a geographical perspective, the USA maintains its position as a key player in the AVoIP space,” says Brennan. “China is also making headway, with volumes in this market already noteworthy and growing rapidly. Moving forwards, China’s position as both a manufacturing hub and burgeoning marketplace will reap rewards. Western Europe is also witnessing high demand, with the widespread availability of existing 1G networks helping to increase interest in countries such as the UK, Benelux, France and the Nordics.

“Despite significant growth, it has been a mixed year for the AVoIP market. Some vendors have enjoyed rapid sales growth, but many believe that the market has much more to offer in the coming months and years.”

Date Published:

Adam Cox

About the author

Adam Cox

Adam Cox is Senior Analyst at Futuresource Consulting and is responsible for researching and reporting on technology trends across the imaging, pro video and collaboration market categories.

Adam is also heavily involved in work looking at end users, service providers across the corporate markets and in addition to this, works on tracking and examining the collaboration, wireless presentation and conferencing equipment sales channels.

Adam joined Futuresource in 2006 working on broad range of market tracking, analytical and strategic pro broadcast AV Projects. He soon went onto lead the broadcast equipment team covering the full broadcast production chain from acquisition to content delivery. Adam holds a Bachelor of Arts (BA) in Film and Television Studies.

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