AV Magazine
It is tricky in these abnormal times to give a clear diagnosis of any market but if we miraculously subtract Covid-19 from the body politic then the AV business in DACH is definitively healthy.
A snapshot of industry players taken before the epidemic shuttered global trade suggests that. Germany especially, narrowly avoided economic recession and that post-Brexit could lift the region’s heavy corporate-industrial sector out of the doldrums.
“Due to the upswing in digitalisation and the increasing demand for digital signage, we will continue to be in a very healthy and growing pro-AV market,” says Christopher Barz, operations manager, B-Tech AV Mounts.
As in other mature markets, much of the activity is in transitioning infrastructure in every sector from AV to IT.
“The future belongs to the companies that replace ‘AV’ with ‘AV/IT communication technology’ and provide solutions for this,” urges Petra van Meeuwen, director of PR and marketing, TIG.
“We are seeing the majority of future investment across EMEA in IP and software-defined solutions,” confirms Liam Hayter, senior solutions architect, NewTek. “DACH is no exception though can be more cautious with such paradigm shifts than other regions.”
The shift goes hand in hand with a move to AVaaS concepts which is posing challenges for AV manufacturers and integrators.
“In our experience, the maturity level of German-speaking companies concerning the business added value of AV is somewhat lower than in the Anglo-American or Asian region,” voices Oliver Mack, MD of macomGROUP. “Too often AV is still seen and operated as part of the technical building equipment. As a result, users are often not clear about who helps in the support case. Systems are often not properly managed and therefore not always ready for operation.”
He continues: “Compared to those in UK/America, German companies are using far too few standardised systems, a professional rollout, an end-of-life-management or a professional operational integration.”
There is, though, a generational change on the customer side with an IT background. “This is pushing standardisation issues, lifecycle considerations and service concepts centre stage,” Mack says.
Large corporate (notably automobile and insurance) and financial institutions remain the most dominant customer group in DACH. “It’s their continued investment in cutting-edge AV solutions that keeps the market steady for vendors like us, and it’s beginning to ramp up now decisions are being made post-Brexit,” says Mark Stanborough, sales director, EMEA and APAC at MediaStar Systems. “There was some hedging of bets over the last couple of years about corporate expansion and opening new offices, but there seems to be more clarity now, and that will have a knock-on effect on proAV.”
Servicing the corporation
Frankfurt is an increasingly popular location, particularly for the financial sector. “It’s more buoyant than many other European cities, with a lot of multi-nationals attracted to it as a base for their DACH headquarters,” Stanborough reports.
Frankfurt is an increasingly popular location, particularly for the financial sector. “It’s more buoyant than many other European cities, with a lot of multi-nationals attracted to it as a base for their DACH headquarters,” Stanborough reports.
Standards are high and price is not a primary driver. “Instead, customers look at the whole package, including quality and services,” says Konstantin Flabouriaris, sales manager, Philips Professional Display Solutions. “After care, such as when things go faulty and how long replacements take to be sent or software updated, is often the deciding factor. End customers are increasingly more knowledgeable about the products and brands they’d like to have installed. That’s a big positive for the industry.”
The region is densely populated by AV companies and, as a result, customer attention is highly competitive. “This creates opportunities because customers place increasing value on professional support,” relates Barz. “The need to provide the highest levels of customer service, support and of course, reliable, best quality solutions is paramount to success and market backing.”
Hamburg-based sound kit developer TOA Electronics recognises the typical German customer as cost-conscious, “searching for high-quality products to get the best possible price/performance ratio,” says sales manager, Tom Mikus. “They know that who buys cheap often buys twice. Innovation is really important, but long-term continuous products are welcome as well.”
Datapath’s regional sales and account manager Sven Matern judges the German AV market as pretty reserved and conservative towards new developments. “German culture is about always wanting to deliver 110 per cent and, in most cases, not being satisfied with less. This also applies in the pro-AV industry. Germany is known for planning and checking everything in detail. Although this means very high standards, it does lead to longer project times than you’d expect in other parts of the continent.”
Cross border
There are no distinct differences in business culture between the DACH trio but companies are mindful of local nuances. “The mechanisms and market participants are very similar,” says van Meeuwen. “Companies in border regions supply both markets or have branches in other major cities. Switzerland is more of a ‘closed market’ because there is simply more work to do with imports and exports (repairs). Sales are usually carried out separately.”
There are no distinct differences in business culture between the DACH trio but companies are mindful of local nuances. “The mechanisms and market participants are very similar,” says van Meeuwen. “Companies in border regions supply both markets or have branches in other major cities. Switzerland is more of a ‘closed market’ because there is simply more work to do with imports and exports (repairs). Sales are usually carried out separately.”
Melinda Von Horvath, vice-president, sales and marketing, Peerless-AV points to regulatory hurdles in Germany which differentiates it from the rest of Europe. “For example, greater regulations for when and where outdoor advertising is allowed. Fire protection certificates are required for all electronic components for installations in public buildings, staircases, and emergency exits.”
Mikus reports Switzerland’s slightly different legal rules and more complicated business dealings, “because you have to provide everything in three different languages and as it is not part of the EU.”
Matern observes that Germany and Austria are almost identical in terms of business and rights but that political interests can diverge greatly.
Emerging focal points
While sustainability has yet to become a burning issue in the AV industry, within DACH, Germany and Austria have some of the largest deployments of green and sustainable energy sources. Germany focuses more on wind and solar-derived power. Austria has invested in hydroelectricity.
While sustainability has yet to become a burning issue in the AV industry, within DACH, Germany and Austria have some of the largest deployments of green and sustainable energy sources. Germany focuses more on wind and solar-derived power. Austria has invested in hydroelectricity.
“Moving to software- and IP-defined infrastructure also greatly reduces electronic waste as most ‘upgrades’ become software upgrades and/or end point upgrades rather than traditional rip-and-replace upgrades,” says Hayter. “Compressed video-over-IP technologies utilise existing and increasingly efficient GigaBit Ethernet network technology which together delivers much lower power consumption compared to protocols delivering uncompressed video over 10GbE and higher.”
TOA points to the growth of IP-based installations and advances in artificial intelligence. Says Mikus: “Customers love autonomous systems. They love to follow new developments, functions and possibilities and often want to be among the first to use new technology. Multi-functional audio is popular as well – one system for all of their requests. To combine pro-audio with voice alarm systems is a very popular solution for PA systems.”
Von Horvath says requests for Direct View LED are rising, even though some AV integrators still have price and purchasing reservations about it. “We expect the technology to replace LCD video walls in the next two to five years. By educating our installer customers in the region through AVIXA-approved training courses, we’re helping equip them with the confidence to specify the correct mount for any application and be able to install LED solutions quickly and effectively.”
Among the firm’s recent DvLED installs is a 7×3 (4.48 x 2.88m) outdoor LED videowall with Kapsch AG using XD4 displays from Absen at a large sports shop in Kitzbühel (Austria).
Flabouriaris highlights demand for solutions, rather than simply displays. “That’s quite a shift. It’s therefore important that the industry remains proactive rather than reactive to customer needs and demands,” adds Von Horvath.
As elsewhere in Europe, the entire retail sector and applications at the point of sale are currently experiencing a major change. “Demand for LED solutions is increasing heavily,” says Barz. “Reacting to market trends is crucial for any business, and we have already formed close relationships with some of the markets leading manufacturers to support their customer needs.”
MediaStar signals demand for its IPTV and streaming solutions, particularly in the stadia sector with recent installs at the Augsburg Arena (Germany), and at a big hockey club in Davos, Switzerland.
“For all our DACH customers it has never been more important to ensure solutions provide secure, legal streaming and many are now also wanting to do this with HDCP 2.2 Pro,” says Stanborough. “In addition, solutions that are proven to enhance informational signage and which support smart cities are much sought after.”
It’s an obvious point but Coronavirus has heightened demand for videoconferencing – a trend expected to continue long after people get back to the commute.
DigitalPakt
One development stands out as impacting a wide number of vendors. In 2019, the German government signed DigitalPakt Schule (Digital Pact for Schools), a €5 billion programme over five years to digitise schools. This is unusual since education funding is conventionally devolved to federal states.
One development stands out as impacting a wide number of vendors. In 2019, the German government signed DigitalPakt Schule (Digital Pact for Schools), a €5 billion programme over five years to digitise schools. This is unusual since education funding is conventionally devolved to federal states.
“Due to the Digital Pact there is a large order potential in the education sector for AV consultants, specialist planners, integrators and distributors,” says Mack.
B-Tech anticipates many local AV companies able to benefit and is looking forward to invitations to tender. Technology in demand will include interactive touch screens. “Touch technology and digital solutions for schools will become increasingly important,” says Flabouriaris.
Clevertouch’s sales manager, Germany, Wilfried Tollet agrees: “The numerous advantages offered by interactive touchscreen solutions in this area are best illustrated by the large number of intelligent learning apps that can be used via the displays. In the corporate sector, too, the signs continue to point to growth. Digital collaboration is not a fashionable trend, but a development resulting from the changes in the world of work due to digitisation and globalisation.”
Adds Flabouriaris: “One of the positive impacts of ‘Digitalpakt’ will also be greater sustainability as digitised solutions mean less paper and less print outs.”
Sales expansion
All of this activity is being supported by a rash of vendor activity in the region. B-Tech is expanding with a larger sales team, and plans to open a showroom at its main office and distribution warehouse near Berlin. TIG is opening an ‘experience centre’ in Frankfurt in May offering end users hands-on tests with solutions from vendor partners Crestron, Hoylu, Black Nova, Salamander Designs and Gude. This is in addition to Crestron’s new facility in the same city which will provide training, technical support and a product presentation and demo area.
All of this activity is being supported by a rash of vendor activity in the region. B-Tech is expanding with a larger sales team, and plans to open a showroom at its main office and distribution warehouse near Berlin. TIG is opening an ‘experience centre’ in Frankfurt in May offering end users hands-on tests with solutions from vendor partners Crestron, Hoylu, Black Nova, Salamander Designs and Gude. This is in addition to Crestron’s new facility in the same city which will provide training, technical support and a product presentation and demo area.
NewTek is opening an EMEA Support presence in Germany next quarter and launching a ‘NewTek University’ online and class-based global training programme. TOA is hiring more sales and engineering staff at its EMEA HQ based in Hamburg, a city where Macom recently opened a new office in the research and transfer centre of the University of Applied Sciences. There, Macom will work on projects and research papers with a practical orientation toward digital reality, digitisation and agile working.
“We are increasingly receiving requirements from the market to integrate digital reality into projects and are developing our own products here,” says Mack. “We have employees there focused on mixed reality.”
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