AV Magazine
From established markets in Northeast Asia, to emerging ones in the South and South-East, the whole Asia Pacific region is adopting video-based innovation at an unprecedented pace.
Although pro AV is still relatively young in Southeast Asia AVIXA estimates that the region represents a $6.3 billion market growing at a CAGR of 5.9 per cent through 2023 to reach $8 billion.
InfoComm Southeast Asia opens in Bangkok this May which is a big signifier that many of the brands are seeing increased traction in the area. “Price drops in the cost of AV products and international businesses beginning to hold larger technology and infrastructure budgets are converging to drive strong growth in the region, even in higher end technology arenas,” observes Glenn Bailey, vice-president APAC, SiliconCore Technology.
However, the adoption rate and investment in new technologies differs across the region and the pace for this transition from traditional to digital AV varies.
“While Singapore and Malaysia have a huge banking, infrastructure and international business community with strong corporate AV markets, developing countries like Thailand and Vietnam are still much in the early stage on the technology curve,” Bailey says.
“In general, most markets are shifting towards digital AV but with the convergence of AV over IP, the pro AV industry is likely to shift towards more software-based solutions and this may render some of the AV products within a traditional corporate installation obsolete,” says Candice Siow, Kramer’s regional senior sales and marketing manager. The company is one of many basing their presence in the region out of Singapore, seen as the most business friendly hub to service adjacent markets in Thailand, Malaysia, Indonesia, Vietnam and beyond.
“The pro AV market is fairly mature in Singapore, and the technological adaptability rate is much faster and quicker than in neighbours like Indonesia,” says Siow. “In project tenders, you will frequently see requirements for 4K support, smart meeting rooms and control and management systems. In Singapore, we are seeing many installations of large LED displays in retail malls and even commercial buildings where owners and developers are vying for the attention of the consumers and tenants.” The potential to increase digital signage, security/surveillance, and performance/entertainment solutions is strong.
SiliconCore notes a rise in the use of large format displays in retail applications, predominantly in Singapore. “We are focused on the niche of fine pitch, direct view LED videowalls and the display market in some regions is starting to invest in high quality LED displays in corporate, control room and high end retail environments,” says Bailey.
Region’s tourism reliance
The region heavily relies on tourism, which is an area of investment for both international and domestic brands, with hotels, retail and leisure brands all looking to create luxury guest and tourist experiences. Smart city investment is a huge market in Malaysia while Singapore’s two integrated resorts (IRs) are set to invest S$9 billion in expansion. The exclusivity period for both casinos is being extended past the original 2017 expiry date to end in 2030 instead.
The region heavily relies on tourism, which is an area of investment for both international and domestic brands, with hotels, retail and leisure brands all looking to create luxury guest and tourist experiences. Smart city investment is a huge market in Malaysia while Singapore’s two integrated resorts (IRs) are set to invest S$9 billion in expansion. The exclusivity period for both casinos is being extended past the original 2017 expiry date to end in 2030 instead.
The investment, reports Christie, will include a 1,000 room all-suite tower at Marina Bay Sands, a 15,000-seat arena and extensions to Universal Studios Singapore aside from additional gaming provisions. In Taiwan, Siow reports that the military/defence sector is shifting from traditional AV to digital AV for its surveillance needs. Following Japan’s 2020 Olympic announcement on 8K projection, Kramer has begun seeing 8K DOOH advertisements.
“It will be interesting to see how the pro AV industry keeps pace. While the market hasn’t fully settled in on 4K functionality, we are now looking at the transition to 8K technology,” says Siow.
In the corporate market, across the region, collaboration technologies, AVoIP and 4K are all spurring new spending. Systems replacement cycles have also been shortening as a result of rapid technology advance.
“As the working practices evolve, many organisations are moving towards flexible work arrangements and team collaboration,” Siow says. “We are seeing an increase in collaborative working and huddle space rooms and expect significant growth in this area.”
Jenny Li, sales manager for B-Tech AV Mounts in APAC calls the market “vigorous” and “generally growing fast.”
“The Thai market seems cost sensitive,” she adds. “Systems integrators prefer cheaper products and don’t mind spending more time on installation. Indonesia chases for efficiency more than cost.”
Peerless-AV reports demand for “quality, field proven and UL safety tested commercial grade products that companies aren’t able to find elsewhere on the market,” according to Brian McClimans, vice-president, sales, North America and APAC. “For example, a Malaysian cruise ship company reached out to us about commercial grade outdoor displays that would be robust enough to withstand the harsh salt water, windy conditions on deck while at sea.”
Jamie Hind, sales director APAC at Exterity, describes the region as “incredibly tech-savvy and forward-thinking.” He adds: “Throughout Asia-Pacific consumers expect sophisticated, technologically-minded solutions and the various industries we operate in are responding to it by deploying more advanced services.”
For Exterity this means designing solutions that create an immersive and exciting visitor or guest experience. “One of the most creative developments we’ve invested in is ‘jackpot integration’. Simply put, we use jackpot feeds based on values, thresholds and other indicators as triggers to deliver any content, to any screen or device anywhere.”
An example of this is, suitably, at the Okada Manila Casino. Hinds says the jackpot integration means clients can communicate with visitors and guests alike, via live IP video, IPTV and digital signage wherever they are – all from a single, centralised platform.
Emerging economies
Beyond so-called traditional markets such as Hong Kong (Macau) and Singapore, several companies are also seeing huge demand from emerging markets such as the Philippines, Indonesia, Vietnam, Thailand and Cambodia – “all of which are quickly establishing themselves as fabulous destinations and leveraging the very best that technology can offer,” says Hinds.
Beyond so-called traditional markets such as Hong Kong (Macau) and Singapore, several companies are also seeing huge demand from emerging markets such as the Philippines, Indonesia, Vietnam, Thailand and Cambodia – “all of which are quickly establishing themselves as fabulous destinations and leveraging the very best that technology can offer,” says Hinds.
Christie picks out Indonesia for “strong potential” particularly in the theme park and entertainment market and within that segment, growth for pro AV requirements in the Dark Ride entertainment rides. This, says Christie, is leading to the demand for brighter, more compact and reliable technologies.
Distances and differences
A major challenge is the geographical size of the APAC regions and the stark differences between the countries. SiliconCore’s APAC HQ is in Sydney from where its team serves the whole of the region. “We make regular demonstrations in each country… some of our largest installations are in Australia, Thailand and Malaysia,” Bailey says. “We also have staff based in a number of SEA countries which gives us a good understanding of the cultural differences between our audiences. In fact, it’s vital for larger project-based sales.”
A major challenge is the geographical size of the APAC regions and the stark differences between the countries. SiliconCore’s APAC HQ is in Sydney from where its team serves the whole of the region. “We make regular demonstrations in each country… some of our largest installations are in Australia, Thailand and Malaysia,” Bailey says. “We also have staff based in a number of SEA countries which gives us a good understanding of the cultural differences between our audiences. In fact, it’s vital for larger project-based sales.”
Kenneth Cheung at Dataton partner Audio Visual Technique is among the few voicing caution. “The uncertain outcome of the Sino-US trade dispute and high value of the US dollar have clouded the otherwise optimistic outlook of the region’s economy,” he says. “The region’s governments are keen in nurturing the growth of creative industries to be the next economic engine after manufacturing and more young people are joining the work force in new media.
“The big challenge for the pro AV industry is to help the young blood master the tools of the trade and generate new growth. To that end, we provide specialised training across the region and, in fact, will be running the first industry-certified Dataton Academy in Bangkok during InfoComm Southeast Asia.”
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