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A decade ago, the Indian government kickstarted ‘Make in
India’ aimed at reducing dependency on imports, while elevating its role in the
global economy.
It’s on track to achieve USD1 trillion in exports by 2028.
Boeing, for example, placed its largest aerospace engineering facility outside
the US in Bangalore where Cyviz recently completed a collaboration installation
integrated with Boeing’s existing Cisco infrastructure.
A related Digital India programme launched in 2015 is also
reaping dividends. With more than half a billion internet subscribers, India is
second only to China as the largest market for digital consumers. As
connectivity becomes omnipresent, consultancy McKinsey predicts it will create
significant economic value and change the nature of work for tens of millions
of Indians.
A national smart cities initiative aims to digitise
everything from traffic management to law and order to water supply and waste
management, all monitored through command centres.
Naturally, all of this means the country is full of
potential AV business. AVIXA ranks India as the fastest-growing pro AV market
globally with annual revenue projected to reach $11.8 billion in 2029.
“There are several things going for India this decade,” says
Prashant Govindan, director, Generation AV at TiMax APAC. “That the bulk of the
population is aged between twenty five and forty creates a unique demographic
dividend both from a market and a growth perspective. Within this macro market,
there are unique opportunities in Tier One, Tier Two and even Tier Three cities
and towns. Industries that cater to this demographic are seeing rapid growth
and will continue to do so for the next decade or so.”
Local offices in the western and northern territories
The majority of new business comes from multi-nationals as more organisations
set up local offices in the western and northern territories, reports Justin
Joy for Peerless-AV: “The most significant change in recent years has been the
acceptance of quality brands across verticals, demonstrating that the value
propositions of a product are becoming more important, not just price.”
Simon Roehrs at Ross Video says domestic pro AV is showing
substantial growth. “India’s commitment to becoming a digital-first economy has
encouraged businesses to invest in AV technologies to improve operational
efficiency and customer experiences,” he adds.
Hans Chia of Clear-Com notes a spike in demand for live
events in conferences, trade shows, and entertainment attributing the market’s
rapid growth to digital transformation.
Datapath’s Andy Lee has seen the market go from strength to
strength. “That’s not to say it doesn’t have its challenges, but we’ve seen
year on year growth and are set for our record year there in 2024-25 with some
prestigious projects hopefully closing in the next few months.”
Infrastructure investment
Major infrastructure investment spans control rooms, unified organisational
communications, and public safety as well as sports stadiums: The 132,000 seat
Narendra Modi Stadium, Ahmedabad is touted as the world’s biggest (and will be
full for cricket).
“On the enterprise side, companies including Reliance
Industries, Indian Oil, State Bank of India, Bharat Petroleum, Tata Motors, and
Rajesh Exports are part of the global economy with a global supply chain and
customer base making modern corporate communications infrastructure
indispensable,” notes Samuel Recine at Matrox Video. “India also ranks fourth
in global defence spending, behind Russia. In summary, the climate for pro AV
in India is strong with strong forward prospects.”
“Even in government and public sectors such as state funded
universities where traditionally technology adoption has been slowest, a rapid
digitisation wave is fuelling AV adoption,” says Govindan who cites a recent
tender for digitisation of courtrooms right down to district level with over
10,000 rooms, saying more such initiatives are underway.
Hospitality is undergoing an AV surge as hotel chains
remodel and create new customer experiences. With 80-plus hotels under
construction Marriott plans to operate over 250 hotels and 50,000 rooms in
India by 2030. The IHG group, Accor, and Taj (Indian luxury hotel group), plans
another 500 properties.
“With such explosive growth, in domestic travel and stays,
hospitality chains are investing in AV tech as a differentiator to add to the
overall customer experience, with specialty restaurants, bars, lounges, spas
and conferencing and ball rooms,” says Govindan. “The wedding season is another
growth driver in micro markets such as Jaipur, Udaipur, Agra, Goa and Kerala
with even domestic customers seeking out exclusive experiences.”
Evolving AV culture
Rapid growth into digital and IP/IT solutions has, however, left something of a
lag in skills and buying perceptions.
“Many organisations are now prioritising high quality video
workflows to support content production and streaming, including large
manufacturers, social media companies, and corporations,” says Straker Coniglio
of AJA Video Systems. “However, volunteers are often asked to run these
production workflows, despite having little to no technical expertise. As a
result, we’re seeing more pronounced demand across the region for reliable
technologies that provide high quality AV and user-friendliness, as well as affordability.”
While there is regional diversity in terms of spending power
Govindan describes the overall outlook as “highly aspirational with a desire to
associate with high quality (or perceived high quality) brands. This is
reflected in the choice of apparel brands, shoes, and cars. This generation is
more image conscious and will pay a premium for being different.”
On the other hand, there’s a price-conscious India that
still values a good bargain. Says Govindan: “Older generations will shop around
for a deal. They still have considerable influence and buying power. In the AV
world we encounter purchase managers from this generation who tend to look for
a bargain, though a vast majority now choose value for money over pure price.”
India is a big software development talent pool
Recine suggests India boasts one of the world’s richest software development
talent pools. “Yet India exhibits some frugality versus some Western
counterparts when it comes to technology asset classes spanning diverse price
ranges,” he says. “The economy for pro AV customer personalisation and system
integration services overall isn’t as fully developed as some Western
countries. Most of the country’s most noteworthy networking talent is still
primarily tied up in rapidly growing government and corporate infrastructure
leaving a gap in the media networking talent pool.”
On the plus side, the Indian population has a very strong
English capability which allows them to access training information for topics
like AV-over-IP.
Sidharth Chhibber, director of Acoustic Arts concurs: “Traditionally, cost
effectiveness has been a key consideration. However, as AV solutions are
becoming far more sophisticated all the brands that we distribute for
(including Powersoft, Biamp, Cloud Electronics and Audix) have shown strong
growth.
“A key vertical driving AV demand is education, specifically
for digital learning and smart classrooms. The education sector offers a clear
example of how AV technology is becoming indispensable, especially
post-pandemic.”
Joy finds product knowledge is grasped quickly by local
consultants and integrators. “There’s a good level of awareness that each brand
provides, which is apparent during discussions at major expos such as InfoComm
India and AV-ICN. Having a local presence is extremely important here, as are
frequent visits to conduct training and maintain relationships to ensure brand
acceptance.”
Displaying growth
Research firm, DSCC predicts that India is set to become the next big flat
panel manufacturing nation. A younger growing population, compared to China’s
which has peaked and falling, is a contributory factor. As is that India’s
domestic TV market - the third largest after China and the US - continues to
grow.
The India Cellular & Electronics Association projects
domestic display manufacturing will grow 29 per cent a year due to a surge in
demand for phones, TVs and IT hardware.
“Retail is another fast adopter of AV but price
consciousness remains,” says Joy. “Hospitality and healthcare are sectors where
we still see growth potential. Since the government is pushing for new
airports, shopping malls and smart cities we’ll only see the number of DooH
screens rise.”
Indeed, the transport sector, both air and rail, is poised
to double in the next couple of years in terms of traffic and reach. New
airports in regional cities connected by the government’s incentive for
regional airlines (UDAN) and the rapid growth in air traffic between Mumbai,
Delhi, Bangalore, Hyderabad and Chennai is driving this growth.
“New airports and terminals to existing airports are being
added in Mumbai and Bangalore, while a new greenfield airport is being built in
Noida in the National Capital Region,” Govindan adds. “Additional airports in
Goa, Maharashtra, Uttar Pradesh, Madhya Pradesh and Gujarat have been built
leading to growth in many Tier Two and Three cities.”
The government’s ambitious push for high-speed rail
transportation with the new Vande Bharat trains across the country is also
developing the overall connectivity to smaller cities. “Notable is the
public-private partnership which aims at international standards of train
termini with state of the art PA and digital signage,” says Govindan.
Audio developments
In terms of sound, most of the technology developments are in performing arenas
and convention centres. “Two large convention spaces have recently opened up in
Delhi (the Bharat Mandapam, the Yashobhoomi ICC) and the Jio CC in Mumbai, with
many more in the pipeline. This sector is seeing major growth,” says Govindan.
In August, Avocor opened the first of two Experience Centres
in partnership with regional distributor, Mindstec as part of plans to
“significantly expand our footprint” in the market, explains Avocor sales
director, Rohit AK.
He reports that overall office leasing in India is “shooting
through the roof.” From 74.4 million sq ft in 2023 leasing is expected to hit
80 million sq ft this year and projected to cross 100 million in 2025 of which
domestic firms are expected to contribute to 60-65 per cent of the total
acreage.
“These figures have kept us excited and are keeping us on
our toes,” says Rohit. “Hybrid collaboration is the key product category today
and it is seen across verticals, from offices to government organisations to
class rooms to hospitality and to every industry that needs collaboration.”
Central government has concentrated on digitising thousands
of public schools over the last decade through the Digital India programme
which is projected to spend $1.7 billion between 2021-2026. In the latest
budget, 6.6 per cent of overall GDP is to be spent on education alone.
“This push on from digital education has been a catalyst for
our industry,” says Rohit. “Those companies who are manufacturing in India with
the ‘Make in India’ tag are getting preference over non-Indian OEMs in
government tenders. This is creating ecosystems for local AV manufacturing
which will help the overall customer experience in the longer run.”
Immersive experiences
One of the most notable aspects of AV applications in India is the trend for
projection mapping and architectural lighting. Similarly, immersive galleries
and interactive museum exhibits are being developed to enhance cultural
engagement, making art and history more accessible.
“Cities and states are increasingly focused on creating
captivating experiences for visitors through immersive displays,” confirms
Narendra Kumar Rai at Eyeviz Digital Solutions (Dataton’s partner). “This trend
is spreading beyond major tourist destinations, with regions nationwide
recognising the potential of these technologies to attract and engage
tourists.”
Eyeviz blended projection mapping with the natural beauty of
the Ganges River to create a unique attraction that celebrates the cultural
heritage of religious sites.
“AV culture in India is shifting from the inner sanctum to a more integrated
approach that emphasises innovation, interactivity, and audience engagement,”
says Rai. “India is positioning itself as a key player in the global AV
landscape, with unique applications that reflect its diverse cultural heritage
and forward-looking aspirations.”
Regional variations
The corporate business is largely driven by Bangalore, known as India’s Silicon
Valley, closely followed by Hyderabad and Chennai. New Delhi sees a higher
volume of government-related projects.
“The west of India drives banking, financial services, and
insurance with the majority of financial institutions having their HQs in
Mumbai,” reports Rohit. “East of the country is largely driven by state
government spending for AV.
“Hyderabad has emerged as a growing hub for corporate
activities, presenting exceptional opportunities for high-end AV solutions,”
confirms Chhibber. “Goa’s hospitality sector has been buzzing, with numerous
new restaurants and nightlife venues opening up over the past two to three
years, further driving demand for advanced AV installations.”
Lee highlights “thriving tech cities such as Bengaluru and
Pune which have an abundance of large corporations with brand new facilities.”
Datapath products have been sold into CCTV rooms, reception areas and desks
showing dashboards of company data.
Peerless’ dvLED mounts were recently specified for a large
museum project and its kiosks and outdoor displays are being installed in
developing smart cities such as Gandhinagar, the capital of Gujarat, and the
city of Gurgaon - India’s second largest IT hub and third largest financial and
banking hub.
“Southern India is where the multi-nationals are and where
the majority of office fit-outs are happening,” says Joy. “The west of the
country is known as a retail, museum and entertainment hub and the North is
predominantly a government hotspot.”
Diverse regions and cultures
Engaging with India’s AV market requires a nuanced understanding of its
geographic and cultural diversity.
“Our key piece of advice is to focus on local collaboration
and customisation,” shares Rai. “Given India’s vastness, different regions have
unique preferences, challenges, and cultural contexts. By partnering with local
vendors, artists, or cultural organisations you can gain invaluable insights.
This collaboration not only helps in tailoring solutions to meet specific needs
but also fosters trust and credibility within the community.”
Ross Video’s top advice for engaging with the market is also
to focus on localisation. “Tailor your products, services, and marketing
strategies to suit the specific needs, preferences, and cultural nuances of
each region,” urges Roehrs. “India’s market is highly varied, with differences
in language, consumer behaviour, and business practices across states. By
adopting a localised approach, whether through regional language options,
customised marketing efforts, or understanding local business norms, you can
connect more deeply and effectively with your target audience.”
Lee agrees: “If you’re not based there yourself get a good
partner(s) and work with them by visiting regularly.”
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