AV Over IP Sales Up Over 130 in 2017

AV over IP is poised to eventually revolutionize the low-latency Pro AV market, according to a newly-released industry report from Futuresource Consulting. Moving from a position of relative obscurity, AV over IP encoder/decoder ports will enjoy a year-on-year increase of over 130 percent.

AV over IP describes the distribution of video over an IP network within an enterprise, hospital or campus at low latencies. Traditionally, the distribution of video from multiple sources to multiple endpoints such as displays, projectors and monitors has required a matrix switcher; a large and costly piece of hardware.

Although we agree with most of what Futuresource is saying here below, we believe it will be a slower transition to acceptance. And, until both Extron and Crestron have a complete line of AV-over-IP products, most of the ProAV integration community will go slowly adopting this new way of signal routing. Don’t underestimate this impact. But, once you see both of those companies out with a FAMILY or products — not just one line — then you’ll see rapid adoption. 

“This is a game changer for the industry and its impact cannot be overstated,” says Anthony Brennan, research analyst at Futuresource Consulting. “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. Make no mistake, AV over IP will transform the way the Pro AV market interacts with and controls AV systems.”

Until recently, AV over IP solutions were considered unrealistic in low-latency Pro AV applications, but they are now competing directly with established technologies and forcing the global matrix switcher market into a period of decline.

“The matrix switcher market is well established,” says Brennan, “and with high barriers to entry it has been monopolized by a handful of large companies. The low barriers associated with AV over IP are allowing smaller companies to compete directly with these large enterprises, merging the worlds of IT and AV, placing software solutions at the heart of the AV industry and fostering innovation and competition. For savvy vendors equipped with the right market information, the scale of the opportunity is enormous.”

From signal distribution brands to IT software and infrastructure players and the wider Pro AV community, the effects of this transition are far-reaching. Furthermore, the threat to established vendors is being amplified by their investments in AV over IP.

“The major signal distribution and control players have tough decisions to make,” adds Brennan. “They must risk cannibalizing their own core businesses by wholesale investment in AV over IP or fall by the wayside as the new Pro AV land grab takes hold.”

Futuresource expects AV over IP solutions to see rapid adoption across most industry verticals, including corporate, education, government, and leisure and hospitality with varying adoption levels in healthcare and residential markets. Short-term, entertainment and higher education applications are forecast to see the highest levels of penetration.

“We’re hearing from vendors that their conversations with users have shifted to the benefits of individual products and competitive advantage,” comments Brennan. “They no longer need to convince users that IP technology is a viable option for low latency signal distribution. This represents a significant shift in mindset for the wider AV world.
Gary Kayye

About Gary Kayye

Gary Kayye, founder of rAVe Publications, is one of the most prominent personalities in the audiovisual industry. He has been a contributor to WIRED magazine and a technical advisor and columnist for Sound & Communications magazine as well as an opinionated columnist for rAVe [Publications] since 2003. In addition to his writing and market analysis, Gary has been a product, marketing and business operations consultant to dozens of AV companies in the U.S. and overseas. Clients have included companies such as Sony, Sharp, Epson, Lutron, InFocus, Sanyo, Mitsubishi, NEC and Philips.   Gary, who has been involved with the audiovisual market for over 20 years, was the recipient of the InfoComm 2003 Educator of the Year Award and the 2007 NSCA Instructor of the Year Award. Over the years, he has donated much of his time as an active volunteer in the AV industry’s trade association and served as chairman of InfoComm’s Professional Education & Training Committee (PETC), chairman of the ICIA Design School Committee and chairman of InfoComm’s Installation School Committee. In addition, he has served on the InfoComm board of governors. He also helped grow the InfoComm Projection Shoot-Out as the premiere AV industry trade show special event serving on the committee from 1991 through 1997, and was instrumental in launching the Shoot-Out in the European market at the Photokina Expo in 1994 and 1996 as well as the Asian market at the 1995 and 1997 INFOCOMM Asia shows.   Prior to founding his own company, Gary was vice president of sales and marketing for AMX Corporation (www.amx.com), a manufacturer specializing in professional AV and residential AV control systems. Prior to AMX, Gary spent nine years at Extron Electronics (www.extron.com), rising to the position of vice president of sales and marketing. Gary earned his bachelor’s degree in journalism in 1987 from the University of North Carolina and is currently Adjunct Faculty at UNC in the School of Journalism teaching a class on how future technologies will affect the future of advertising, PR and marketing.   He is also the founder of Swim for Smiles, a non-profit that raises money for the N.C. Children’s Hospital through swimming and other fitness-related events for kids. You can contact him at gary@ravepubs.com..