Projection in Decline - But Strong Opportunities in High Brightness
The front projection market is projected to reach a value of $4.5 billion by 2026, new research from Futuresource Consulting finds. The figure is buoyed up by an industry-wide shift to high brightness, high resolution, and SSL (laser lightsource), which is the technology required to reach these upper-brightness categories.
The industry has been in a state of flux in recent years, due to the well-documented component supply issues. Exacerbated by the pandemic, these limits have impacted almost every type of component, though the semiconductor industry has borne the biggest burden.
Due to shaky supply chains, nations are attempting to invest in local production. The European Chips Act announced by the European Commission aims to invest €43bn in a semiconductor industry ecosystem. If effective, this ambitious plan should double Europe’s semiconductor global market share from 9% to 20% by 2030.
Futuresource research programs show that most core AV product categories have, or are near to, returning to pre-pandemic levels. Nevertheless, vendors are venturing forth tentatively at best. The ongoing supply chain disruptions and global instability are looming in people’s minds.
Large Venue and Installation Shine Through
Despite an undeniable atmosphere of caution, projectors within the large venue and installation categories are seeing some uplift. The success of large art installations, like those seen during the mourning period of Queen Elizabeth II, has driven this trend.
The chip shortages and stock constraints are driving the front projection industry to prioritise higher-margin products. These outside forces are leaving their mark on the industry, with installation and large venue being the only segment to witness volume growth in Q2 of 2022. Now retaining a 5% total market share, this segment is the silver lining of a rather cloudy quarter for the front projection market.
Dedicated Home Market Continues Solid Trajectory
The Dedicated Home market has remained stable throughout the pandemic, as home-based entertainment was all that was available for many. H1 2022 saw lockdowns across China which bolstered demand, and this is expected to continue across the World Cup in Q4 2022 and the Olympics in the summer of 2024. 650k units are expected to be sold in 2022, a reassuring figure that is edging the market ever closer to pre-pandemic levels.
Projection the Firm Favourite of Large Meeting Rooms
The industry is still feeling the after-effects of the pandemic – though this isn’t inherently negative. Large meeting rooms will remain popular as they lend themselves to social distancing and collaboration, as well as downsizing office costs by knocking two rooms into one. Projection is the clear winner in enabling these spaces. Corporate Display is still expected to command just shy of two million units annually right up to 2026.
The feedback from the channel suggests that, thanks to their flexibility, these solutions are being used in office environments for small meetings where large format displays can facilitate social distancing. Thanks to their low ASPs, these solutions are becoming a solid option for businesses.
Futuresource Consulting’s Front Projection Tracker keeps track of the highs and lows of front projection. Featuring quarterly performance reviews and a five-year outlook, get a handle on this dynamic landscape with intel from our leading analysts. For more information, please contact ben.thrussell@futuresource-hq.com
About the author
Freddie Mossop joined Futuresource as a research analyst in 2021, responsible for researching and reporting on the worldwide projection market, as well as other Display technology. Prior to Futuresource, he graduated with a BA in Business Management from Nottingham Trent University.
About the author
Olivia Lowden is responsible for the long-form content, press, and partnerships at Futuresource. Prior to her career at Futuresource, she completed an MA in Creative Writing at the University of East Anglia, demonstrative of her lifelong love of words.
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