Fragmented AVoIP market is creating an arena of obstacles and opportunities

AVoIP, the transmission of audio and video over any IP infrastructure, is facing a paradoxical future. While the market is experiencing rapid technological advancements, driven by the continuing global shift towards remote and hybrid working, it is also dealing with inflation, increased interest rates and political turbulence.  

Amid this disarray, a new report from Futuresource Consulting explores the significant regional disparities, the technological shifts, and the economic challenges shaping the trajectory of this evolving marketplace. 

A cycle of undersupply and overcorrection

“The last few years have been a white-knuckle ride for the AVoIP industry,” says Kateryna Dubrova, Senior Market Analyst, Futuresource Consulting. “The pandemic caused significant disruptions to the global supply chain, impacting the availability of AVoIP components. Then, the market recovered, but it overcorrected, leading to a production surplus in the first half of 2024.  

“This has given rise to high inventory levels and reduced sales, prompting vendors to put a temporary brake on their R&D activities. However, despite these challenges, our research shows that the AVoIP market is poised for growth.” 

1G and 10G reconciled and repositioned

The AVoIP market is characterised by a clear separation between 1G and 10G solutions. 1G remains dominant, due to a combination of its relatively low cost and its sufficient performance for most standard deployments. Yet 10G is an essential component of some high-end applications. As a result, Futuresource expects 1G and 10G to continue to coexist. 

“The widespread adoption of 1G will continue across our forecast period,” says Dubrova. “It satisfies the mass market, where lower bandwidth requirements and ease of integration are vital considerations. Meanwhile, 10G offers superior performance, including higher bandwidth and better image quality, though it remains niche and expensive. These premium solutions are primarily used in healthcare, advanced corporate settings and large-scale entertainment venues. It is in these environments where 10G’s high-speed and low-latency capabilities are absolutely critical.” 

AVoIP standardisation essential, yet opportunities abound

Beyond the significant regional disparities, the technological shifts and economic setbacks, a need for standardisation across different AVoIP solutions is a major market challenge. The lack of unification is leading to a fragmented landscape, with different standards like SDVoE and HDBaseT each finding their niche, yet affecting the overall adoption rate of AVoIP solutions. In addition, a new wave of noteworthy players is entering or repositioning within the market, including Audinate, PlexusAV, and Crestron, with its strategic move to improve its NVX line. 

“Despite a wide range of challenges, the AVoIP market still offers significant opportunities for expansion,” says Dubrova, “particularly through the development of interoperable and scalable solutions, as well as by targeting emerging markets. For those companies aiming to sustain growth and maintain competitive advantage, continuous innovation, strategic acquisitions and strong partnerships will be critical success factors.” 

Moving forward, Futuresource expects the global AVoIP market to grow at a CAGR of 16.3% between 2023 and 2028. 

Futuresource Consulting’s report, AVoIP: The Future of Interoperability, assesses the current state of the market, including key trends, technological advancements and supply chain developments, as well as providing an outlook on the shape of the sector over the next five years. For more information or to make a purchase, please contact Ben at 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.