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AV over IP: What to Expect from This Growing Trend in 2018

With sales of AV over IP products increasing by 130 percent year-over-year, according to market research firm Futuresource Consulting, AV over IP is enabling a whole new era of AV distribution. Futuresource research analyst Anthony Brennan notes that “we’re seeing the beginnings of a trend that will shake up the industry, with our forecasts pointing to a volume CAGR of nearly 50 percent during the next five years.”

Over the course of the past year we enjoyed the rapid growth of AV over IP products even though the technology is still in its early stages. So, what’s in store for AV over IP in 2018?

Why AV over IP is Gaining Popularity

Today, savvy business leaders are leveraging real-time, media-rich content in the form of high-definition videos to better communicate with their customers, employees and partners. AV over IP solutions make it possible to distribute low latency, full HD, quality video content eliminating the technical and financial challenges of distance, image quality, scalability, flexibility and cost often associated with conventional matrix switcher workflows.

Audiovisual devices have become common tools in business. Think audio and video conferencing equipment, video calling, media streaming encoders, remote diagnostic tools, CCTVs as well as smart devices like cameras, thermostats and microphones. Most end users have reached a point that if they are not able to leverage these devices, they would not be comfortable doing business.

Most AV over IP products can be integrated into existing networks without having to install separate cabling systems. It’s important to emphasize that AV over IP is cost-effective and hassle-free for many markets, including retail, medical, finance, hospitality, entertainment, and government.

AV over IP Trends in 2018 and Beyond

According to Futuresource Consulting Ltd research analyst Anthony Brennan, the AV over IP sector is already experiencing robust sales, and is expected to see even greater sales numbers by mid to late 2018. Brennan says that based on vendor feedback, customers have shown an increasing preference for IP technologies. In addition to this bright outlook for AV over IP in 2018, Brennan adds that organizations that seize the opportunity now will command a significant market advantage in 2018.

The Audiovisual and Integrated Experience Association, or AVIXA, released its 2017 AV industry economic outlook through 2022. The AV Industry Outlook and Trends Analysis (IOTA) Global Summary includes regional summaries for the Americas, Europe, and Asia-Pacific. According to Sean Wargo, AVIXA senior director of market intelligence, the IOTA Global Summary provides a comprehensive picture of the AV market, including product trends and vertical market analysis to equip AV companies with valuable insights to build their business strategies.

Some highlights of the report include:

  • Regional Outlook. The global AV industry generated $178 billion in 2016. While revenue from European operations decreased, the Asia-Pacific region experienced significant growth. The industry is expected to generate an additional $52 billion with an annual increase of 4.7 percent through 2022.
  • Market Trends. The cloud will increasingly become more common in IoT-based AV solutions which will help reduce operating costs.
  • Product Trends. Projector sales will drop and incur a loss of $1 billion in revenue, but the displays segment will experience a 14 percent annual growth rate and $3.5 billion in additional revenue through 2022.
  • Market Dynamics. By 2022, the AV market will grow to $22.9 billion with the bulk of that gain going to AV capture and production equipment. AV revenue from hotels, casinos, resort and cruise lines will increase to $14 billion by 2022 from $7 billion in 2014. The healthcare market will also see double-digit growth.

The Cisco Visual Networking Index: Forecast and Methodology, 2016-2021 reflects similar assumptions for the AV over IP market, noting the following video centric highlights:

  • By 2021, one million minutes of video will cross the global IP network per second.
  • Live Internet video will grow 15-fold from 2016 to 2021.
  • Internet video surveillance traffic will grow sevenfold from 2016 to 2021.
  • Internet video to TV increased by 50 percent in 2016 and will continue to grow at a rapid 3.6-fold by 2021.
  • Traffic on consumer video-on-demand (VoD) will grow nearly twofold in 2021, equivalent to about 7.2 billion DVDs per month.

According to Ben Davis of Futuresource Consulting, the increasing availability of low to zero latency products and the associated reduction in cost are advancing AV adoption across major verticals.

Considering what’s in store for AV over IP in 2018, AV professionals should be very excited. The positive trends encourage us all to stay ahead of the trends as the era of AV over IP comes into its own over the next few years.