AV Industry Revenues Top $18.9 Billion Annually in North America

ICIA Releases Benchmark Survey of AV Industry, Projects 9.6% Annual Growth in Next Five Years

ATLANTA, June 10, 2004 - According to Acclaro Growth Partners, the audiovisual industry produces revenues of $18.9 billion a year in North America and is projected to grow at a rate of 9.6 percent annually over the next five years. The International Communications Industries Association, Inc.® (ICIA®) today released its AV Market Definition and Strategy Study, the first report of its kind to quantify the AV industry and project sales figures.



"The AV industry has evolved dramatically, and AV technology enhances communication everywhere today - whether in the boardroom or the classroom or in most public spaces from airports to museums and retail centers," said Randal A. Lemke, Ph.D., Executive Director of ICIA. "The convergence of AV and IT, emerging applications for AV products, and demand driven by the home markets are key factors driving the professional AV market. As the association for the AV communications and systems integration industry, we saw the necessity to define where we are as an industry, and determine strategies that might help AV companies to be successful in this dynamic landscape."

The ICIA report, developed by Acclaro Growth Partners through ICIA's foundation, the International Communications Industries Foundation, is split into two versions: one for manufacturers and the other for other commercial AV companies, including dealers, systems integrators, rental and staging companies, and independent design consultants. With information collected by mining data, surveys, and qualitative conversations with key industry thought leaders, Acclaro analyzed and synthesized a mosaic -like picture leading to tangible recommendations that AV manufacturers, dealers and independent design consultants could use in their strategic planning for growth and success.

The Manufacturer Report offers insights into general trends, including a look at margins and the proliferation of wireless technologies; growth opportunities beyond the corporate, government and education markets into digital signage, security and worship; product innovation recommendations such as interoperability, user friendliness, and web -enabled versions; channel exploration; and customer sales strategies.

The Commercial Report helps clarify the evolving definition of the term "dealer," which may include or overlap the role of VARs, integrators, and design/build companies. It identifies and provides suggestions to deal with the perceived threat of volume distributors, including market -oriented, product -oriented and service -oriented defensive strategies.

And, the report addresses head -on the issue of AV/IT convergence, which is driving the introduction of technologies supporting a number of newer applications. Among these are streaming media, webcasting, wireless and software, all relative newcomers in the AV space. Currently, these segments have low penetration rates and are expected to grow significantly as products continue to web -enable technologies.

According to the survey results, the North American AV market is comprised of annual sales of products totaling $11.5 billion and services totaling $7.4 billion. The top five products and their share of total product sales include display systems (40 percent), AV systems (22 percent), peripheral products including furniture and lighting (14 percent), control systems (10 percent) and signal management processing (8 percent). Services include those provided by dealers (66 percent), rental and staging (20 percent), distributors (11%) and design consultants (3 percent).

Products driving demand in the overall AV market are displays, wireless, control systems and projectors.. Revenue growth is driven primarily by display systems which are expected to grow with an average of 12.1 percent annually over the next five years due to technology innovations in plasma and flat screens. The growth in display systems has led several IT companies to enter the market to offer competitive products.

The AV Market Definition and Strategy Study (MDSS) is available in two separate reports. The Commercial MDSS for dealers, systems integrators, rental and staging companies, and independent design consultants is available to ICIA members for $349 (non -member price is $499). The Manufacturer MDSS is available to ICIA members for $999 (non -member price is $1,499). Reports are available for purchase on the ICIA website at www.infocomm.org/marketintelligence/.

About ICIA
The International Communications Industries Association, Inc.® (ICIA®) is the premier trade association for the professional audiovisual communications industry. ICIA is the founder of InfoComm, the conference and trade exposition for audiovisual communications professionals who come to learn about the latest technologies and available services as well as new and alternative applications. ICIA serves its worldwide membership as the pre -eminent provider of education, training and certification. For more information, visit www.infocomm.org.

ICIA and its foundation, the International Communications Industries Foundation, Inc.® (ICIF®) established a market intelligence program in early 2003. The purpose of the program is to facilitate the process of finding relevant market information and increase the number of available market reports covering the AV industry. ICIA's Market Intelligence program includes primary research, and also acts as a referral service to research conducted by market analyst partners. More information about this program is available under Market Intelligence at www.infocomm.org/marketintelligence

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