Corporate AV budgets expected to increase by 36% over next three years, according to new Futuresource research study

It has been more than four years since the outbreak of the COVID-19 pandemic, yet corporate uncertainty still surrounds the usage and true purpose of office space, the right hybrid working balance, and the emerging roles of technology. 

To fully understand enterprise AV trends, needs and frustrations, Futuresource Consulting has conducted a new research study. Carried out with 900 corporate decision-makers and influencers across the USA, UK, France, Germany, India and Japan, the study uncovers a profound shift in the relationship between companies, their employees and the technologies they implement. 

Businesses still in post-pandemic flux

“There is no silver bullet to guarantee every business success,” says Alistair Johnston, Head of Collaboration, Futuresource Consulting. “Instead, many organisations are still feeling around for the solutions that will work best for their particular needs. And our latest round of AV decision-maker research shows that the changes triggered by the pandemic are far from over. 

“We’re seeing work patterns continue to develop. Places, spaces and tech are being modified to cut through the complexity and help steer companies in new strategic directions. At the same time, buyer behaviour is evolving, with budgets moving from dedicated AV teams to IT and facilities. All this activity is also reshaping purchase channels and could have consequences for the supply chain.” 

Hybrid working still on the up

The study shows that working practices are still evolving. Across the sample, rates of fully office-based workers have halved since 2020, from 54% down to 26%. 

When asked how they expect work patterns to change over the next few years, respondents predicted another fall in fully office-based working, dropping an additional six percentage points. There was also a substantial expected decrease in those who spend only a few days each month at home.  

The biggest increase is anticipated in the fully flexible category of employees, who visit the office only as and when needed. The survey results revealed that this will rise to nearly one in every four employees over the next few years. 

More workspace alterations and meeting room tech  

Nearly three-quarters of those surveyed reported that their companies have made changes to office design as a result of the pandemic. But the workspace alterations are far from over, with almost half expecting the number of meeting rooms in their organisations to increase over the next three years. The primary reason given for this increase was the need for the office to be a space for collaborative work. 

“Our survey shows that there is still room for growth in all categories of meeting room technology,” says Johnston, “although displays and video conferencing show the greatest saturation. Instances of video conferencing peripherals are highest in small meeting rooms, reflecting the greater applicability of BYOD video conferencing in such spaces.  

“Respondents also expect AVoIP to grow over the next few years, particularly in larger companies. And while just over half of AV equipment is currently reported to be connected to a network, this proportion is expected to rise by more than 25% in the coming years. We’re also seeing a wide variation in replacement cycles, in terms of room sizes, equipment types and company sizes. There’s a lot of interesting detail in the data.” 

Boom time for AV budgets

When it comes to budgeting, 60% of the total sample work for companies with a dedicated annual AV budget. This budget is slightly more likely to sit with an IT team than with a dedicated AV team. The study also found that the importance of facilities teams grows in relation to the size of the company. Just over half of companies also reported that they have a dedicated budget for home working. 

Looking ahead, AV budgets are expected to increase by 36% over the next three years, with growth expectations highest among larger companies, though even the smallest companies anticipate a rise of 25%.  

For more information on Futuresource Consulting’s Enterprise AV Decision-Maker Report, or to make a purchase, please contact Ben Thrussell at ben.thrussell@futuresource-hq.com. 

About the author

Alistair Johnston

Alistair leads the Collaboration team at Futuresource Consulting, researching and consulting on the ways we work together, both in the office and remotely.

With a background in both operations and marketing, Alistair is particularly interested in how individuals and companies adapt under conditions of technological and social change.

Alistair has an economics degree from the University in Cambridge, and has previously worked as a business analyst, particularly within the financial sector.