AV Over IP: What To Expect
AV Over IP: What to Expect From This Growing Trend
According to market research firm Futuresource Consulting Ltd, AV over IP is enabling a whole new era of AV distribution with sales of AV over IP products increasing by 130 percent year-over-year. 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 potential customers have reached a point that if they are not being 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. What AV integrators need to emphasize with their clients about AV over IP is its cost-effectiveness and hassle-free benefits that would be attractive to businesses across such verticals as retail, medical, finance, hospitality, entertainment, military and government.
AV Over IP Trends in 2018 and Beyond
According to Futuresource Consulting Ltd research analyst Anthony Brennan, the AV over IP sector currently buoyed by robust sales, will be seeing 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 companies 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. Security, surveillance and life safety solutions generated $14.7 billion in 2016 with 50 percent of that total spent on security cameras. 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.
The Software Designed Video Over Ethernet (SDVoE) Alliance members met recently in Montreal to discuss the road map for SDVoE deployments in 2018. They invited Ben Davis of Futuresource Consulting who shared his “AVoIP Market Development & Outlook” keynote presentation. Both SDVoE and Futuresource agree that the increasing availability of low to zero latency products and the associated reduction in cost are advancing AV adoption across major verticals.
Recognizing the lack of standardization and networking expertise, SVDoE alliance members pledged to educate the AV community about AV over IP system design. “We are ideally positioned to overcome the challenges we face. We offer a standardized hardware and software platform for zero-latency, uncompromised video distribution and we are providing the education the market needs, including a full slate of sessions at ISE 2018,” according to alliance president Justin Kennington.
Considering what’s in store for AV over IP in 2018, AV integrators should be excited. The positive trends should encourage integrators to continue to flex their marketing muscles to stay ahead of the competition as the era of AV over IP comes into its own over the next few years.
Other Blog Posts
Experience Possible: The Story Behind the Strategy.
" Experience Possible": The Story Behind the Strategy. By Alpha CEO, Kevin Groves.
Feb 1, 2023
Remote Production Networks Using NDI & SRT
Nov 12, 2020