Thought Leadership: The State of Pro AV - Navigating a Healthy but Fragmented Market in 2025

A Market in Flux: The AVoIP Paradox

The professional AV (Pro AV) industry is at a pivotal moment. The shift from traditional AV to AV over IP (AVoIP) workflows is no longer a question of "if," but "when." Futuresource Consulting's analysis reveals a powerful paradox: end-user sentiment toward AVoIP is overwhelmingly positive, yet the market experienced a 15% dip in 2024. While many are eager to invest, a combination of macroeconomic pressures, security concerns, and—most significantly—market fragmentation is slowing the pace of adoption. This is a story of promise tempered by pragmatism, where the future is undeniably IP-based, but the path to get there is still being paved.

The economic headwinds of 2024—including post-pandemic debt, high interest rates, and geopolitical tensions—have forced many organizations to adopt a "fix and mend" policy. Capital expenditure on large-scale overhauls has been deferred in favor of short-term survival. At the same time, budget cuts have led to leaner IT teams, who often lack the bandwidth and expertise to manage the complexities of a new IP network. Manufacturers have made great strides towards simplicity, but a true plug-and-play solution for networks beyond 2.5G remains elusive.

The Standards Standoff: Open vs. Proprietary

The most critical barrier to AVoIP uptake, however, is a lack of universally adopted standards. The market is a crowded landscape of proprietary, vendor-locked ecosystems and open, but still emerging, protocols. While this competition drives innovation, it also creates a "wait and see" mentality among cautious buyers who fear investing in technology that could become obsolete or strand them in a single vendor's ecosystem. The introduction of IPMX, an open standard based on SMPTE ST 2110, offers a potential solution to this fragmentation. Its versatility and promise of interoperability are encouraging, with 30-35% of interviewed end-users already considering adoption. However, overcoming the dominance of established proprietary solutions like NDI HX, which is already integrated into 56% of IP-enabled Pro PTZs shipped in 2024, will be a significant challenge.

The Way Forward: A Hybrid and User-Driven Future

Despite these hurdles, the long-term outlook for AVoIP is robust. Futuresource forecasts AVoIP encoder and decoder shipments to achieve a 5-year CAGR of 4.3%. The market's gradual recovery is being driven by minor upgrades and a rising demand for high-quality, 10G+ encoders and decoders, particularly in high-budget sectors like finance. The pandemic, which normalized video-first communication, has created a more video-literate user base that is now demanding broadcast-grade quality.

For manufacturers, the path forward involves a dual strategy: serving experienced users on a gradual migration path while also catering to new buyers who prefer the simplicity of plug-and-play products. The rise of hybrid solutions that bridge legacy and IP technologies will be critical in this transition. Ultimately, the market's evolution will be shaped by end-users. As their demand for open, interoperable, and future-ready solutions grows, manufacturers will be compelled to respond. The future of the Pro AV market is being decided not in the boardrooms of vendors, but by the end-users who are increasingly steering the conversation.

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About Futuresource

Futuresource Consulting provides the insights that power the world’s leading technology and media companies. For more than 30 years the firm has combined rigorous data, sector expertise and a forward-looking view of market change. Its syndicated research, consulting services and industry partnerships span consumer electronics, entertainment, Pro AV, education and emerging technologies.

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Press Contact: Nicola Finn, Marketing Manager, Futuresource Consulting, nicola.finn@futuresource-hq.com