AV managed services enters an era of innovation and transformation

The AV managed services sector, previously considered a mature market, is now undergoing a transformative renaissance. That’s according to a new report from Futuresource Consulting, which shows that digitalization across the audio and video sector has enabled a transition to software-enabled tools, cloud services and fully managed solutions. This is opening up a raft of new opportunities within AVMS. 

“Outsourcing day-to-day AV and IT tech management responsibilities builds predictability into the balance sheet,” says Kateryna Dubrova, Senior Market Analyst, Futuresource Consulting. “However, the market has been transformed from a boots-on-the-ground support service to a fully connected digital offering. Cloud utilisation has ushered in remote monitoring and management that stretches far beyond traditional AV applications, into the realms of lighting, HVAC and environmental controls.”  

Global AVMS market builds momentum, AsiaPac leads the way 

As a result of all this activity, Futuresource expects the global market for AVMS platforms and services to accelerate from a value of $1.6 billion in 2022 to more than $6 billion by 2027. That’s despite a COVID-induced growth spike between 2019 and 2022, as business came under pressure to fortify their remote operations. 

While the Americas and EMEA regions will be closely matched in value terms, Futuresource notes that the highest growth rates will originate in the Asia Pacific region, at a CAGR of around 42%.  

A shifting competitive landscape 

The competitive landscape is also shifting, with companies partnering up and acquiring expertise to land grab more of the AV space. As the sector evolves, established players are innovating and upgrading existing offerings, and new players are entering the space. There are also vendors entering the AVMS market that traditionally wouldn’t be classed as service providers.  

However, Futuresource expects only a limited number of platforms to survive in the market and be open to third-party applications and software integration. In the meantime, vendors are proactively investing in and differentiating through software management tools.  

“Despite using platforms and software, enterprises still value speedy and efficient on-site managed services for maintenance, in-person interaction and in-person training,” says Dubrova. “And it’s the vendors with rapid response times across a range of geographies that have the upper hand. For the customer, it’s all about a quick, high-quality and consistent response. AVMS is an example of where the client is willing to pay for the value-add combination of quick on-site response and remote management capabilities.” 

A technological step-change for integrators 

As a result of changing demands, AV integrators aren’t just struggling with reassessing their business models as channel and integration partners. They also need to catch up on understanding, evaluating and monetising consulting services that improve the end-user experience.  

Arguably, the most disruptive AVMS trend moving forward will be the deployment and use of software, pushing AV endpoint management, monitoring and operations into a cloud-native environment.  

For more information on Futuresource Consulting’s new AVMS market overview and forecast report, or to make a purchase, please contact ben.thrussell@futuresource-hq.com 

About the author

Kateryna Dubrova

Kateryna Dubrova is a Senior Analyst for Futuresource Consulting. She is covering and reporting on connectivity and up-the-stack technology for the Pro AV market. Kateryna's research is focused on the evolution of the AV sector, on connectivity and software-enabled tools that are becoming a disruptive element for the vendors, and how their go-to-market strategies are evolving. Her main areas of expertise include digital transformation, connectivity, professional services, and technology’s impact on sustainability.

Before joining Futuresource Consulting, Kateryna was a research analyst covering SaaS/PaaS with Core Analytics and ML/AI technologies within the IoT domain. Her specialization included O&G and renewable energy markets, industrial domain, telco, and sustainability markets. She also conducted several academic research projects in political economy and global studies.