Popularity of the huddle room helps increase corporate flat panel ownership
Futuresource Consulting is advising AV providers to focus on the corporate market as growing demand for additional meeting spaces is expected to drive increases in corporate flat panel ownership of 25% in Europe and 17% in the US.
Chris McIntyre-Brown, Associate Director at Futuresource Consulting, said: “Our figures point to a total addressable market of more than 10.5 million meeting rooms right now across Western Europe and North America, and that figure just keeps on rising. We’re seeing the rise of the huddle space and opportunities are opening up in the SME segment. These are exciting times for the corporate AV market and switched-on vendors could seize a significant slice of the action.”
LCD flat panel displays continue to take share from the projector market, and the shift is accelerating. By the end of 2018, European respondents expect their ownership of projectors to have declined by 9.6%, whereas they expect to increase their flat panel display ownership by 25%.
Of all the European markets, the UK showed the lowest reliance on projection. Even so, over 55% of large meeting spaces and 45% of mid-size meeting rooms still have a projector installed.
A combat zone
“The corporate meeting space is no longer all about the display,” explained McIntyre-Brown. “Convergence of AV and IT and the upsurge of collaborative communications solutions, wireless presentation, video conferencing and audio are creating a combat zone of new challenges and opportunities for all vendors operating in this space.”
Futuresource Consulting points out that web conferencing tools like Skype, join.me and GoToMeeting are opening up more opportunities for providers of meeting room tech. It expects these platforms to become integrated into the meeting room experience as demand continues to grow for more collaborative environments where both content and video need to be shared.
Almost half (44%) of European professionals surveyed have a company sponsored web conferencing account. When conducting a meeting in their office, over 25% of all respondents stated that they prefer to meet using web conferencing technology. This preference was highest among large and mid-size organisations and professionals working in IT, sales and marketing and C-level management.
McIntyre-Brown added: “With the lure of web conferencing and with 8% of employees we surveyed working from home three or more days a week, the role of the corporate meeting room continues to build momentum. Our interviews with purchase decision-makers reveal that more than half of the meeting room budget is spent on display product. Combine that with the increasing number of meeting rooms expected over coming years and the drive toward faster, smaller and more efficient meetings and we’ll see well informed, agile vendors reap the rewards.”
1 million Interactive Flat Panel Displays (IFPDs)* sold worldwide in 2016, an increase of 14%.
Interactive IFPDs enjoyed a CAGR of 59% between 2013 and 2016 and growth is forecast to continue.
By Q4 2016, 68% of all interactive display sales were IFPDs.
Combined sales of interactive whiteboards (IWBs) and IFPDs reached 1.6 million in 2016.
In the US, half of IFPD sales are now over 70”.
The corporate market is under-penetrated. Worldwide, there are 32 million corporate meeting rooms, but well under one million have IFPDs installed. In contrast, two thirds of US classrooms have IFPDs.
The corporate market is expected to reach 500,000 annual sales by 2021.
* Interactive displays refers to Interactive Whiteboards and Interactive Flat Panels used in the Education and Corporate meeting room environments and does not include other applications such as digital signage. (source: Futuresource Interactive Display Market Report 2017)