ICIA® releases results of six new market studies in the first half of 2004
FAIRFAX, VA, May 17, 2004 - The International Communications Industries Association, Inc.® (ICIA®) has released results of six new market studies in the first half of 2004. All the reports can be purchased in the Show Store during InfoComm 2004, in the Online Store at www.infocomm.org or by calling ICIA Sales at (800) 659 -7469.
Special Report: 2004 AV Market Definition and Strategy Study
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% annually over the next five years, according to a new ICIA AV Market Definition and Strategy Study conducted and produced by Acclaro Growth Partners. The report is the first of its kind to quantify the AV industry and project sales figures.
The convergence of AV and IT is driving the introduction of technologies supporting a number of newer applications. Among them streaming media, webcasting, wireless and software, which are 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.
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%), AV systems (22%), peripheral products including furniture and lighting (14%), control systems (10%) and signal management processing (8%). Services include those provided by dealers (66%), rental and staging (20%), distributors (11%) and design consultants (3 %).
2004 Market Forecast Survey
The Market Forecast Survey observes that "future trends are again quite positive," with most of the North American dealers and independent design consultants that responded believing their revenues and profits will increase over the next three years.
Among responding companies, median revenue climbed from $2.6 million in 2002 to $3 million in 2003, jumping 9.1 %, and is expected to grow another 14.1 % to $3.5 million in 2004. Respondents also reported significantly higher profits in 2003 over 2002, and expect this trend to continue in 2004.
These companies view the business/corporate market as the AV industry's most significant category, accounting for an average 23% of revenues in 2003; however, the higher education market is perceived as very important, accounting for 14.9% of revenues. Government and military, meetings and events, worship and K -12 markets are also high on the radar.
New products and technologies singled out for having a positive impact on members' businesses include videoconferencing, digital signal processing, control systems and devices, wireless devices, the growing convergence of AV systems and solutions, LCD projectors, and LCD and plasma displays.
2004 Dealer Compensation and Financial Survey
Conducted in the spring of 2004, the 2004 Dealer Compensation and Financial Survey report contains detailed charts showing salaries for 33 different positions based on data on 1,700+ individuals, and company basic business and market information. In addition to compensation -related data, the new 2004 version includes detailed financial data and ratios for fiscal year 2003, including major categories of sales, cost of sales, gross profit, expenses and other similar financial factors.
The popularity of salary increases has increased slightly from the rates seen in the last survey, but remains well below peak rates seen in previous years. The median salary increase amount has dropped to below five percent for the first time ever. Technical and administrative staff are most apt to receive a salary increase.
The number of staff generally remained the same in 2003, with nearly one -half saying that staff were not added or cut. Looking forward to 2004, staff upsizing is the rule, with almost 60% expecting to add staff, forecasting hiring a median of 13% additional staff.
2004 ICAT Bid Survey
The 2004 ICAT Bid Survey gives a complete picture of the North American marketplace for independent design consultants. The economic clout of the firms in the sample is impressive: the value of systems designed by these firms represents $750 million in AV, broadcast/production, data/telecomm, large venue audio and acoustics projects.
In every ICAT survey since 2000, total dollars in AV bids has increased over the previous year by a consistently larger percentage (+23% in 2000, +28% in 2001, +30% in 2002, and +31% this year). Even more encouraging, the trend in percentage annual growth in average AV project size shows an even greater geometric increase: +5% to +8% to +9% to +18% to +59% this year. The average bid size reported is nearly double that of last year. While the median bid size holds steady, a dramatic increase is reported in the largest bids.
2003 AV/IT Networking Survey
ICIA's 2003 AV/IT Networking Survey polled AV professionals within large enterprises, specifically corporations, universities, government and healthcare; dealers; and manufacturers.
Applications are driving networking as a product requirement - end -users are embracing networking technology as part of their integrated solutions, and the dealer is motivated to incorporate the capabilities that they desire.
Dealers and end -users agree on the importance placed on networking and indicate some willingness to pay a premium for networking capabilities - interestingly, manufacturers seem to be less enthusiastic, primarily because of the viewpoint that networking features increase cost without providing any additional revenue.
Dealers underestimate the influence IT personnel have within the end -user organizations - IT carriers significantly more weight in the decision -making role for the purchase and integration of new systems than the dealer gives them credit for. The dealer also underestimates the IT departments' support role.
InfoComm iQ Trend Report
ICIA has released the first quarterly InfoComm iQ Trend Report, which tracks the shopping habits of more than 50,000 AV product buyers each month. The InfoComm iQ Trend Report is based on real data compiled from over 450,000 unique online visits to ICIA's massive iQ product database in the first quarter of 2004. The comprehensive report employs a three -tier structure covering 25 first -tier product categories and more than 1,450 second - and third -tier product categories.
Market Intelligence Partnerships
ICIA has established market intelligence partnerships with eight leading market analyst firms - CriticalEYE / Infoscape, DisplaySearch, IDC, Insight Media, InterConnection Consulting Group, iSuppli/Stanford Resources, SCRI and TFCinfo. Market reports describing the AV industry from these partner firms are available on www.infocomm.org in the Online Store, together with ICIA's own market reports. Visitors to the website can quickly search the several hundred reports by product category, geographical region, and vertical industry to find the exact market data they need for their business purposes.
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. In early 2003, ICIA and two other associations - - CEDIA and NSCA - - launched Integrated Systems Events to serve their collective memberships in Europe and Asia. ICIA serves its worldwide membership as the pre -eminent provider of AV education, training and certification.
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.