ProAV industry records QoQ growth despite economic uncertainties lying ahead

Entering tail end of 2022, almost three years since COVID-19 forced the world into a long pause, the economic rebound has not been smooth sailing despite optimism from various verticals. The ProAV industry is no different. The outlook thus far has been inconsistent, albeit seeing some level of positive rebound amid large-scale reopening of international borders, resumption of activities across all industries– i.e., retail, manufacturing, corporate, outdoor sports/events, and international trade.

2Q22 saw the ProAV market grew marginally to 1.6% QoQ after experiencing a 2.1% QoQ decline previously, led by Asia & Oceania, China, and North America. From a global perspective, IFP/touch display was the most in-demand product category with over 555,000 units shipped, increasing its market share to 35.3%, compared to 30.6% in 1Q22. China remains dominant in terms of market share for IFP/touch display, followed by India, and Korea. India’s push for infrastructural upgrades for its smart education development was pivotal to Asia & Oceania’s noteworthy performance this quarter, particularly for 65-inch IFP/touch displays. Revenue-wise, IFP/touch display fetched over $1.73 million, surpassing pre-pandemic levels of the same period (2Q19 at $1.41 million).

No endgame in Russia-Ukraine crisis further complicates global economic landscape

However, the untimely geopolitical conflict involving Russia and Ukraine is derailing recovery of the global economy post-pandemic, with the world now bracing for a cycle of inflation and recession. Both Russia and Ukraine are key producers of essential commodities such as food, oil, and natural gas. As the conflict drags on, distribution of such commodities to the rest of the world is severely disrupted, raising its prices and banning of freights through Russia have forced traders to find alternative routes contributing to the increase of freight cost.

Consumer sentiment will now shift, stressing on needs over wants in their livelihood, impacting several industries including the ProAV industry in terms of demand for public displays. Additionally, Ukraine’s electricity export to other parts of Europe have been limited following Russia’s attack on energy infrastructures, forcing countries such as Germany to introduce restrictions to digital signage operating hours across the country to conserve energy.

Promising trend for interactive displays and prospects of green signage on the horizon

As we look forward to 2023, the IFP/touch display among other product categories is expected to sustain a positive QoQ growth, ultimately helping to retain some hope for an overall positive closure to 2022. Moreover, technical advancements in the ProAV space, involving AI and touchless technology coupled with industry players’ appetite to invest in infrastructural upgrades at present could potentially drive IFP/touch displays’ growth and importance in the market.

Additionally, energy supply disruptions in Europe have sparked renewed emphasis on energy efficiency and potentially speed up the developments of “green signages”. With the vast technology surrounding the ProAV industry, there is no doubt that current public displays are adaptive to various usage criteria, but a lot can still be done with its features. In this aspect, for instance, AI technology coupled with remote access management could help public display manufacturers gather more information, such as peak/off-peak hours, foot traffic, and weather temperature to help understand the surroundings better. Such knowledge will enable public display manufacturers implement innovative technology or features, paving the way for mass usage of “green signages” worldwide, ultimately providing some positive impact in battling a much larger war in climate change.