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Research: AV-over-IP Adoption Is Growing … But Not Exploding

Futuresource Consulting has released research, analysis and commentary on the growth and adoption of AV over IP that also shows obstacles to mass adoption.

January 21, 2019 TechDecisions Staff 1 Comment

AV-over-IP has been the big buzz term when it comes to video distribution over the past few years with good reason. It’s gaining popularity and adoption is growing, according to new industry report from Futuresource Consulting. But it’s not exploding and, in some ways, it’s being held back by significant growth obstacles.

Futuresource writes that the low-latency pro AV market has global shipments of encoders and decoders growth significantly.

“Despite positive market developments and unrivaled growth, the technology has thus far failed to displace existing extension technologies en masse in low-latency pro AV segments,” according to the Futuresource press release.

“We’re seeing a lot of developments around AV-over-IP solutions,” says Anthony Brennan, analyst at Futuresource Consulting. “Shipments have increased more than 60 percent year-on-year and vendors are reporting significant volume growth but there continue to be a number of challenges plaguing vendors in the market.

“Yes, volume growth has been significant this year, there’s no doubt about it. Interest and demand are moving in the right direction, but AV-over-IP has fallen behind the high expectations of many in 2018, with solutions facing significant obstacles to mass adoption.

“The market is still in its early stages, with significant volume growth on the horizon,” he says.

Related: 3 AV-over-IP Security Tips

The 1G vs 10G AV-over-IP Dilemma

1G and 10G solutions continue to battle it out, with 1G taking the lion’s share of the market. Extron’s market entrance with an offering that supports both 1G and 10G installations means that competition in this segment is expected to escalate.

“Our forecasts show both 1G and 10G solutions growing rapidly during the next five years,” says Brennan, “but the 1G market is significantly further along than the 10G space, with major vendors continuing to focus solely on the 1G segment and price point, bandwidth requirements, and the widespread availability of 1G networks helping grow shipments here.”

Corporate Meeting Room Developments

Corporate and higher education verticals are key growth opportunities for AV-over-IP, as businesses adopt innovative video distribution techniques across meeting rooms, and universities ramp up demand for AV-over-IP solutions.

Despite substantial growth forecasted in these segments, wider developments in the meeting room are set to have a significant impact here, with the uptake in UC platforms and demographic shifts in the size of meeting rooms having the potential to dampen demand for video distribution.

Slideshow: 14 Impressive AV-over-IP Products

These could impact demand in two key areas:

Firstly, the corporate vertical is seeing growing interest and demand for UC to handle content sharing and communication between meeting rooms, thus lowering the desire for video distribution across companies.

Secondly, meeting room design is shifting towards simplistic huddle rooms and small meeting rooms which require less extension and more simplistic AV setups. While this has yet to make a real impact on demand in this market, it is certainly a trend that vendors should be aware of.

U.S. Leads the Way, China on the Rise

“Looking at a geographical perspective, the USA maintains its position as a key player in the AV-over-IP space,” says Brennan. “China is also making headway, with volumes in this market already noteworthy and growing rapidly.

Moving forwards, China’s position as both a manufacturing hub and burgeoning marketplace will reap rewards.

Western Europe is also witnessing high demand, with the widespread availability of existing 1G networks helping to increase interest in countries such as the UK, Benelux, France and the Nordics.

“Despite significant growth, it has been a mixed year for the AV-over-IP market,” says Brennan.

“Some vendors have enjoyed rapid sales growth, but many believe that the market has much more to offer in the coming months and years.”

The original version of this article ran on sister site Commercial Integrator.

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  1. AV over IP at InfoComm 2019: Where Are We At? - Commercial Integrator says:
    June 26, 2019 at 4:24 pm

    […] reason is that people — both AV integrators and their customers — now truly seem to understand what AV-over-IP can do for them, according to Mark Templeton, […]

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