InfoComm International 102010 InfoComm Global AV Market Definition & Strategy Study

Table of Contents

Executive Summary 1I t d ti 5Introduction 5Global Overview 14

Overview 15Overview 15Products 23Services 37Customers 44Issues and Trends 54Market Estimates 59

North America 60Overview 61Overview 61Products 63Services 77Customers 84

Table of Contents

Issues and Trends 94M k t E ti t 106Market Estimates 106

Latin America 107Overview 108Overview 108Products 113Services 127Customers 133Issues and Trends 143Market Estimates 146

Europe 147Overview 148Overview 148Products 155Services 169Customers 175

Table of Contents

Issues and Trends 185M k t E ti t 189Market Estimates 189

Middle East/Africa 190Overview 191Overview 191Products 195Services 209Customers 215Issues and Trends 225Market Estimates 229

Asia-Pacific 230Overview 231Overview 231Products 239Services 253Customers 259

Table of Contents

Issues and Trends 269M k t E ti t 272Market Estimates 272

Appendix 273

Executive Summaryy

Executive Summary

100,000The future looks bright for pro-AV, with growth for 2009 –2012 projected to be better than growth for 2006 – 2009.The regions experiencing the fastest growth are also the

Global Pro-AV Market (2006 – 2012)

CAGR

50 000

75,000

llions

The regions experiencing the fastest growth are also the smallest: Latin America and Middle East/Africa.Both North America and Europe are expected to see growth of about 9% during the next three years.Growth for the Asia-Pacific region is being held back by the

2006 – 2009: 8%2009 – 2012: 10%2006 – 2012: 9%

53,96667,939

91,180

25,000

50,000

US$ M

i

slow growth of the Japanese market. If Japan is excluded, the Asia-Pacific region will see a CAGR of 15% during the next three years, surpassing growth of the Latin American and Middle East/African markets.Pro AV services are growing faster than products in all

02006 2009* 2012*

Pro-AV services are growing faster than products in all regions, with services growing at 10% while products are growing at 9%.Projectors and displays together account for 21% of the global pro-AV market.Pro AV Market by Region (2009) gFastest growing products are displays, AV conferencing equipment, streaming media & webcasting and wireless connections & software.Projectors and screens & shades are the slowest growing

d t

4%3%

North America

Pro-AV Market by Region (2009)

products.The fastest growing services are programming, maintenance & training and other services.More than ever, services are critical to the success of the systems integrator

45%23% Asia-Pacific

Europe

Latin America

2009*

systems integrator.25%

ME/Africa

* projected © InfoComm International 2010. All rights reserved. 2

Executive Summary

The need for installation and integration services has been driven by the growing demand for applications such as

Pro-AV Products vs. Services (2009)

driven by the growing demand for applications such as digital signage and videoconferencing.The convergence of AV with IT, security, voice and data are also driving the need for integration services.Outside North America, pro-AV buyers are showing little

38%Products

interest in purchasing maintenance contracts. Instead, these pro-AV users usually take the approach of “maintenance on demand” where maintenance is more reactive than proactive and focused on repairs.Programming has become increasingly complex and

62%

ProductsServices2009*

Programming has become increasingly complex and represents a growing percentage of most AV installations.Education is the fastest growing customer segment. Other fast-growing segments are government, corporate and hospitality.Pro-AV Market by Product (2009)

18%

34%

Displays

AV Acquisition & DeliveryAV C f i

yThe slowest growing customer segments are rental & staging companies, home/residential and retail/distribution.Large events like the Olympics and World Cup are driving growth in Europe, Latin America and Africa.

13%

9%

AV Conferencing

Projectors

Sound

Quality and quantity of staff is a pressing issue in many regions. Many pro-AV vendors expressed concerns about the quality, quantity and professionalism of pro-AV staff. Pro-AV vendors in many regions are concerned that skill levels are not keeping pace with technology.

2009*

9%

16%10% Reinforcement

Other

levels are not keeping pace with technology.

* projected © InfoComm International 2010. All rights reserved. 3

Executive Summary

Green AV is not clearly defined and tends to mean something different to everyone; in the simplest terms, green AV means being more energy efficient and

Pro-AV Market by Services (2009)

2% I t ll ti /I t tig g gyenvironmentally friendly. Green AV is a key issue in North America and less so in Western Europe, but not even on the radar in Latin America, Eastern Europe, Middle East, Africa and Asia-Pacific.Videoconferencing is a fast growing product worldwide2009*

4%

18%

2% Installation/Integration

Design

Rental & StagingVideoconferencing is a fast growing product worldwide. Videoconferencing has been a “bright spot” for many AV professionals over the last three years with a positive outlook for the next three years as increased usage of the technology continues.

2009*56%

4%

16%Programming

Maintenance

Other ServicesDigital signage is an important, global trend; in most regions, digital signage is starting to take off. AV integrators have been making inroads in the digital signage industry and the consensus is that AV professionals are gaining share in the market Many AV integrators report that their

Pro-AV Market by Customer (2009)

Other Services

29%27%

Corporate

Government/Military

Venues/Events

share in the market. Many AV integrators report that their digital signage business has increased in excess of 40%.Just as “anywhere computing” is becoming increasingly prevalent, pro-AV is heading toward “anywhere AV.”End-users and vendors alike are drawn increasingly to “cloud”

12%10%

6%

Venues/Events

Education/Training ServicesRetail/Distribution

solutions that provide greater flexibility and fewer constraints.2009*

16%Other

* projected © InfoComm International 2010. All rights reserved. 4