Friday, 23 February 2024

Spain & Portugal: Sunny outlook for uncertain times

AV Magazine

article here

As reliant on tourism, retail and live events as much of Iberia is, the region is still unwinding from the effects of the pandemic but growth should be strong moving forward due to both countries haven taken advantage of European funds.

Iberia has been more buoyant than other European markets over the past 24 months, reports Cecilia Wills, country manager, Matrox Video: “The demand for pro AV equipment and services has increased in various sectors from corporate and events to education.”

“Spain and Portugal are still existing in a post-Covid period as many smaller projects are being fulfilled that were put on hold and held in backlog,” says Jeroen Helms, sales director, EMEA, Peerless-AV. “Stock levels and logistical issues are now solved, making this fulfilment possible. New, larger projects are not as widely available in these territories, and both countries are extremely cost conscious with price driven brands dominating the pro AV market.”

Julián Oltra, MD of Clear-Com partner, Audio Video Zentralmedia also notes both the large number of projects accumulated due to the hiatus as well as the business this means for almost all AV companies.

Both countries have taken advantage of the Recovery, Transformation and Resilience Plan financed with European funds. “This will represent an economic boost aimed at the digital transformation of public and private sectors, as well as the creation of digital, safe and sustainable infrastructures,” says Carmen Jerez, regional sales manager of Southern Europe, Datapath. The investment is worth 20 billion Euros over three years “a volume of resources destined for digitalisation with a scope and magnitude that will allow a truly transformative impact and reflected already in the growth of opportunities for AV.”

The global macroeconomic situation weighs on the business climate too albeit that the outlook for 2024 is for positive growth and lower inflation.

Pedro Ballesteros, Kramer’s regional sales director believes instability due to the conflicts in Ukraine and Palestine has impacted business, as well as inflation.

“These combined to result in negative growth of the pro AV market and as a consequence investments in pro AV solutions fell during the year.”

Jerez counters that despite the conflicts creating uncertainty, “it is important to note that they are two growing markets in the AV industry and especially in the control room environment,” Jerez says.

Key to navigating these uncertainties, adds Helms “is an open mind and a willingness to adapt and learn.”

“The climate is very positive,” asserts Antonio Ortega, Creston’s country manager who is especially eager to see what will happen to the industry now that the supply chain issues are under control.

Portuguese AV market
The Portuguese AV market, in particular, has been experiencing “significant and sustainable growth” reports Miguel Dominguez who looks after Genelec there.

There are no major differences between the two countries from an AV standpoint. Spain is the far larger and more developed market, with a more established and developed channel of AV distribution partners, notes Helms. “The Portuguese tend to be more protective of their smaller, more independent AV market, with a we-can-do-ourselves attitude,” he says.

Both countries have been earlier adopters of many new trends, says Ortega. “The customers in this region are tech savvy. They know what they want and push us to use the full potential of our products. Traditional products are less in demand. AV-over-IP for instance, has taken over as the most used solution, leaving the traditional solutions behind.”

Manuel Rivera, sales and marketing manager of Yamaha Music’s Pro Audio Division says: “Both nations uniquely combine historic and modern elements in their audio visual sectors, distinguishing them on the European scene as centres where cultural heritage meets technological advance.” That’s evident from last year’s tally of visitors from the region to ISE in Barcelona.

There is another notable attraction common to both countries. “Many multinationals are creating availability zones for data centres on Iberian soil, making it one of the emerging markets and also accommodating the AV industry mainly through control rooms,” says Jerez.

There are currently 60 data centres under construction in Spain alone. Amazon, Google and Microsoft are investing millions of Euros to build capacity there. At Sinces, south Portugal, Datapath is involved in building a control room for one of the largest and greenest data centres in Europe.

“The availability of cheap local green energy combined with geographical proximity to three other continents with fast connections using new high-speed subsea cables which crosses the Atlantic to Brazil, makes Sines an ideal location,” explains Jerez. “It will propel Portugal on to the international data traffic and data centre stage.”

Compared to other European markets, Spain and Portugal can be more price-sensitive for, say, corporate and education projects, says Wills. “But price is less important in mission-critical deployments, such as rail and air infrastructure projects, where brand reputation is more important.”

There’s also been an increase in public tenders in transportation due to investments in national infrastructure. Wills believes this is driving demand for video walls, AV-over-IP solutions, and IP KVM. Some of these programmes are longer-term and won’t deploy for another few years, but others are looking to close in 2024.

“Spain and Portugal are also looking towards smart cities in order to improve traffic management, citizen security, and energy efficiency,” she says. “Pro AV has a big role to play here and it will be an exciting growth area in the region.”

Tourism back to the top
Tourism is the main vertical and source of income, especially in Spain and Southern Portugal. “With the post-Covid return of tourism, the importance of customer experience has increased dramatically,” says Donald De Witte, regional director, Lightware Visual Engineering. “The list of top music festivals is increasing every year which has an impact on the live events industry. Rental and staging is returning to pre-Covid levels and all concerts are increasing their use of video and imagery. During the summer, almost all towns hold celebrations. To attract foreign visitors they are looking for more impactful events.”

Similarly, the retail and hospitality markets are thriving with more interactive experiences. The number of flagship stores in the main cities has doubled and digital signage usage has increased, says De Witte. “The presence of interactive kiosks is increasingly common.”

The amount of AV technology going into high street stores is incredible, exclaims Helms. “And where a large display is needed, this means an opportunity to attach a mount! In retail, Spain is a test ground, and we will likely see it moving into other European countries very soon.”

Crestron notes an uptake in major luxury hospitality, retail and leisure projects, including meeting rooms and guest experience in VIP rooms. “It’s clear that the focus on the user experience is growing,” says Ortega. “Ever since lockdown, there’s a heightened expectation from guests about their in-room entertainment, and end users are responding to those requests.”

Genelec has scored considerable success since teaming with sales partner Garrett. Its first major project was JNcQUOI, combining a high-class restaurant with an upmarket fashion store and delicatessen bar, distributed over three floors in the most exclusive area of Lisbon. Others followed including restaurants as well as retail stores, universities, museums and even training centres, such as the L’Oreal premises located in Lisbon.

Although longer term, it is worth considering the business opportunities of the FIFA World Cup 2030 because it involves Spain, Portugal and Morocco. “The demands on all sports facilities and broadcast equipment will be very high,” says Oltra. “Every time we see more surprising stadiums as an example of architecture, but also think about diversifying their applications with first-class connections and communications.”

Prosegur’s iSOC in Madrid
For monitoring and threat management, operators at Prosegur Security’s new intelligent security operations centre (iSOC) in Madrid rely on a video wall powered by Matrox D-Series graphics cards.

The video wall pulls information from more than 300,000 sources that the iSOC monitors — including CCTV, biometric ID applications; panic buttons and alarms and the mobile communication systems of every one of the security guards.

The iSOC is capable of remotely controlling 120,000+ cameras in more than 25,000 facilities in any sector from retail shopping centres to banking networks. AI specialised for security — developed or adapted by Prosegur in cameras and sensors — generates alerts when it anticipates a risk or a suspicious pattern.

The technology manages 1.2 million alarms a month and can discriminate false alarms, meaning that humans must manage only 1% of them. More than 1,200 specially trained operators maintain realtime contact with 26,500 security guards and technicians across Spain from this control centre.

Education sector growth
In Kramer’s case, the educational sector, specifically the university and postgraduate environment, has seen very important growth. Here, collaboration solutions for students such as VIA, or tools for teachers with QuickLaunch for education, have provided “very simple interfaces, facilitating their day-to-day tasks with a smooth transition to these new solutions,” says Ballesteros.

“In the corporate market post-pandemic, office occupancy dropped a lot and is one of the reasons for the decrease in the level of investment in pro AV technologies in this vertical, but they still need collaboration, hybrid communication and to increase the employee efficiency from the office or from home.”

More than one respondent to AV identifies the need to make personal connections as a key to success. “Being present regularly in the market and having face-to-face meetings with partners and customers is crucial,” says Wills.

Jerez identifies the “differential value of support and personalised attention, highly valued in both cultures,” while Oltra talks of a market that forces him to continually learn. “It is very stimulating for all of us who are lucky enough to work in this sector.”

“In Spain and Portugal, face-to-face interaction is even more important than normal,” agrees Helms. “Cementing business discussions over lunch or a glass of wine is expected, as a sign of obligation and loyalty.”
Salud/saúde to that.

 


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