01.10.19

AV industry lacks concentration despite merger increase says AVIXA research

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Bar chart depicting responses to question regarding mergers and acquisitions

Research carried out by AV and integrated experience association AVIXA highlights the US pro-AV integration market as being low in concentration, with hundreds of businesses of varied sizes thriving in the marketplace despite an increase in pro-AV mergers and acquisitions.

Of the AV providers that were surveyed, almost 27% reported that the company they work for had acquired, merged with or had been acquired by another company from 2014-2019.

The research, a quarterly Macro-Economic Trends Analysis (META) report, was carried out by AVIXA, focused on market concentration trends and found that, despite the increase in acquisitions and mergers, that much of the industry still allows for independent operation outside of larger conglomerates.

The investigation suggested that globalisation and wider market consolidation is playing a role in the increase of merger and acquisition activity in the pro AV sector, as large multinational companies require pro-AV integrators to install coordinated systems in offices worldwide.

Industry maturation was also identified as an aspect, with certain products succeeding in the market place as manufacturers grow and acquiring smaller competitors.

Diversification was also identified, as AV businesses continue to expand into other regions, markets and systems areas through acquisitions and mergers. This can be seen throughout EMEA with Barco purchasing 5% of Unilumin in a partnership deal and Broadcast Solutions acquiring Videlio Middle East, merging its operations in the Middle East.

Peter Hansen, economic analyst, AVIXA explained: "In any marketplace, your ability to set your business apart from your competitors is a top driver of success.

"Maybe you're the highest-quality integrator in your state, or perhaps the only all-in-one AV and IT solution source in your city. M&A can be the most effective way to attain this sort of profit-winning niche. Business leaders should watch for opportunities to differentiate their companies and stay current with trends to make sure they aren't falling behind."