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Global Audio & Video Equipment Industry

The world audiovisual equipment market is a particularly dynamic area of IT development. Though synonymous with home entertainment, the industry also produces products used more and more widely throughout an array of businesses such as presentation equipment and security solutions.

The landscape of home entertainment has changed dramatically in recent years, with one particularly prevalent change being the shift from cathode ray tubes (CRTs) to flat panel technology. Consumers are opting more and more for lighter, more compact flat-panel displays (FPD) to free up space in the home. FPDs use liquid crystal displays to give higher definition resolution. According to Pike Research, flat panels are more than 80% lighter than CRTs and have reduced volume by 75%.

Key Market Segments

The global home audio equipment market is expected to increase to more than $20 billion by 2015, according to Global Industry Analysts. The market is being fuelled by technological developments, product innovation and demand for high-quality content. Asia-Pacific, the Middle East and Latin America are all showing rapid growth. These regional markets are benefiting from extensive urbanization and rising disposable income.

Markets in developed countries are more mature with most households equipped with home audio systems, fuelling the demand for electronic products and digital goods in particular.  Consumers are demanding faster web connectivity to benefit from high-speed data streaming, internet-only entertainment and cutting edge music storage equipment.

Voice recognition technologies are increasingly important as diverse industries seek to integrate voice recognition to attract customers. Banks and airlines are just two among many sectors that use it to boost customer satisfaction and adhere to legal regulations concerning safety. BCC Research reports that the voice recognition technologies market will record near 9% yearly growth for the five-year period ending 2015, bringing the market to over $58 billion, gaining $20 billion on 2010 figures.

The hardware necessary to limit noise interference and transmit signals represents the leading market sub segment, at almost $17 billion in 2010 and expected to grow almost 10% yearly to exceed $26 billion in 2015. Related software sales will record close to 7% yearly growth to reach almost $19 billion in 2015, boosting the market’s value by over $5 billion in five years.

The world TV & video market expanded over 6% in 2010 to almost $192 billion, according to MarketLine. The market is expected to grow over 40% in the five-year period ending 2015 to exceed $270 billion. TV sales represent almost 76% of the overall market, and in terms of regional segments, Asia-Pacific represents over 35% of the overall market.

The global market for flat panel displays (FPDs) is recovering as greater economic stability fuels demand. According go Global Industry Analysts, the FPDs market will be worth almost $103 billion by 2015. Recovering employment rates, increasing disposable incomes, and greater spending power are beginning to bring the market back online after the economic recession.

Increasing demand for CCTV/Video Surveillance equipment is expected to push the global market to $11 billion by 2015, according to Global Industry Analysts. The US and the EU are the two largest regions in the global market, which is driven by a deepening preoccupation with safety. While home security is driving demand to a certain degree, businesses are also becoming more reliant on this equipment, for example banks needing to monitor their ATMs.

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Parent industry: Consumer Electronics
Related industries: Camera, Portable Devices, Telephony, Video Game

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