AV Magazine
The prospect of a trade war with the North can’t dampen
Latin American and Brazilian pro AV growth led by live events and hospitality,
article here
Carlos Rodriguez Martinez of Peerless-AV describes how
businesses are managing the changes taking place in South America and Mexico:
“Adaptation”.
“The drive for growth remains first and foremost with
organisations acknowledging that they need to update and advance but the
current political and economic climate is bringing its challenges. Stay
adaptable and open minded to navigate shifting currents,” he says. “Success in
the region requires flexibility to adjust to the changing conditions,
parameters and opportunities.”
AVIXA says the South American pro AV market is experiencing
steady growth and innovation, with a projected CAGR at 4.6 per cent to 2030.
“Although Latin America has always represented a relatively low percentage of
market share for most manufacturers on a global level, it is a market that has
been growing in recent years and 2025 and beyond will definitely represent
growth,” says Datapath’s regional sales manager for Latin America, Rafael
Herrera citing live events and hospitality as the main source of growth.
Live events bounce
“Increased local and international tourism are driving investments in this
space, particularly in Mexico and Brazil, although we are also seeing a strong
comeback of some of the region’s top events, such as the Vina Del Mar music
festival,” says Jason Barden at Riedel.
This year the festival was attended by 100,000 over six days
and drove new business in LED, live CG, intercom, and audio investments.
“The public sector, however, remains on the decline as
governments are reducing spending,” he says. “This is especially true in
Argentina where the government has reduced spending by over thirty per cent.
Mexico, too has implemented reductions in healthcare and security.”
“Live events are the most successful segment in Latin
America,” says Roi Neira of Ross Video who claims more OB vans use Ross’ gear
in the region than any other brand. He predicts “significant investment” in
enhancing the fan experience at venues across Latin America. “Since we’re
agnostic to the type of screens clients use, we can provide technical and
creative solutions to maximise their investment,” he says.
Media and entertainment culture in Brazil and Mexico
Richard Jonker, vice-president of marketing and business development, Netgear
observes that the strong media and entertainment culture in Brazil and Mexico
heavily influences the AV industry. “The culture has a emphasis on
high-quality, immersive experiences, prompting the adoption of innovative
solutions,” he says.
Related is a continent-wide surge in demand for digital
signage in retail and public spaces. “This is driving a trend towards training
for pro AV equipment. There’s growing interest in remote collaboration tools,
advanced lighting systems, and high-fidelity sound kit to support live events
and entertainment venues. While on par with the global trend there’s an element
of catch-up, particularly in the areas where legacy technologies get replaced
by AV-over-IP, such as in public-address audio, or commercial video
distribution.”
For a brand like d&b audiotechnik, expanding the touring
business across Latin America is very important to the growth of our business
says the company’s head of sales for Central and South America, Christian
Stumpp. “Artists used to come to Latin America for a few shows, but now they
spend weeks touring the continent or even start and end their world tours
here,” he adds.
Demand across arts, entertainment, hospitality, and live
events is deemed “massive” by Sergio Molho, partner, director of business
development, WSDG which was involved in the renovation of River Plate’s Mâs
Monumental Stadium in Buenos Aires, seating 85,000 and now the largest stadium
in South America.
“They’re still doing upgrades with LED screens and adding an
LED ribbon around the stadium. They’re also renovating the surrounding
infrastructure, including a university and school that are on-site,” he says.
AV culture in South America is “quite gear focused,” reckons
Molho. “People tend to prioritise products and functionality over design and
programming. That said, some projects really do value engineering, and there’s
a recognition that the engineering phase should be separate from implementation
and installation. It’s still common in South America for design and install to
be bundled into packages.”
Protectionism and politics
Brazil and Mexico are the region’s powerhouses. “Brazil’s diverse economy and
large population create a substantial market for media and entertainment,
leading to increased demand for AV solutions,” says Jonker. “Mexico’s proximity
to the US and its growing corporate sector make it a focal point for
investments in corporate and government sectors.”
However, as Stumpp point out, the continent remains a
politically and economically fragile market and global politics always has an
impact. Brazil remains a “highly protectionist market with significant trade
barriers. The real cost of a project isn’t just the price of the product - it’s
the taxes and import duties on top,” notes Molho.
“Cost has recently become the main deciding factor,
sometimes at the expense of considerations such as warranties and aesthetics,”
says Martinez.
Colombia growth slows
If Argentina is “expected to see a resurgence once political stability is
regained, Colombia has slowed down due to political challenges,” Molho says.
“Venezuela has become almost impossible to do business in because of the
economic and political situation. Whenever a country shifts to more populist
policies, business tends to suffer, as tariffs and regulations complicate the
landscape. The religious sector is also active but tends to focus on in-house
installations to keep costs down.”
“In Latin America we often say that each country is a
different world,” says Herrera. “Each one has different import conditions, a
situation that directly affects AV business, since practically all of the
equipment, supplies and accessories for installations and integrations come
from the US, Europe or Asia.”
Clear-Com’s Jay Wallace agrees that Latin American markets
take a different approach to other regions. “Unlike the US, where rental
companies are more common, many Latin American countries, including Brazil, see
end users typically owning their own equipment or opting to import gear for
events.
“However, as shipping costs and customs clearance issues
become more challenging, in-country rentals are expected to gain traction,
especially for wireless equipment. Legal frameworks around wireless
technologies are evolving, which will likely make local rentals even more
appealing soon.”
Consequently, his advice is “be responsive to client needs
and maintain a flexible approach - have a Plan B when needed. That’s crucial
for success in these dynamic and diverse markets.”
Control rooms and UC
Outside rental, staging and live event verticals, education is another primary
driver. One of the most prestigious institutions in Latin America, Tec de
Monterrey, is leading the way in implementing the ‘classroom of the future’,
reports Matrox’s Mundackal.
“Innovation in education is poised for significant growth.
Universities in countries like Mexico are looking to increase the number of
students attending remote classes.”
Video walls and IP KVMs “are in high demand” for control
centres in industries such as mining, oil, and emergency response, he notes.
Herrera confirms that the mining industry in Mexico, Chile, Brazil and Peru are
large users of UC and processing for video wall monitoring and control rooms.
Recent installs include a control room at Tulum Airport,
Quintana Roo; a Medical Simulation Centre at the Universidad Javeriana in
Bogotá; a realtime monitoring and emergency room for the Military Police of São
Paulo, and control rooms at the HQ of mining company BHP in Santiago.
“In one way or another, these installations all have in
common high-resolution display devices, AVoIP distribution systems and
professional audio systems for fixed installations. These same verticals,
mining, transportation and security and government, have to date large projects
to be implemented in the coming years.
“Colombia and Chile are seeing a rise in corporate AV and
hybrid collaboration solutions,” highlights Lightware’s Jason Tirado. “Across
the region, businesses are transitioning from traditional AV setups to
IP-based, software-driven, and sustainable solutions.”
WPP Lightware investment in Brazil
WPP in São Paulo is having 100 rooms installed with Lightware gear. Plaza
Mayor, Medellín’s Convention Center is an existing Crestron installation,
“considering a full technology renovation with Lightware,” he reports. Twelve
Colombian universities are already equipped with Lightware systems and the firm
has equipped major corporates BBVA, BlackRock and LinkedIn across Mexico.
For companies looking to engage with these markets, “do not
treat Latin America as a single territory/country,” says Mundackal. “It’s a
common mistake, even though most countries share a common language and similar
cultures, in reality each has distinct regulations, import/export rules, and
business environments.”
“Understand the fiscal, political, and business landscape,”
underlines Molho. “Tailor your approach to each country’s specific needs and
challenges. And if you bring real value to the table, you’ll definitely stand
out.”
“Be ready for the long game,” warns Riedel’s Jason Barden.
“Projects are planned years in advance, with many
iterations, roadblocks, and delays,” he says. “Be patient, work through the
process with the customer, and be ready for the final rush.”
Mexico: World Cup 2026 and Trump’s tariffs
As a resident of Mexico, Jason Barden at Riedel reports mounting excitement
about the opening ceremony and match of the FIFA 2026 World Cup hosted at
Mexico City’s Estadio Azteca (the tournament is co-hosted with Canada and the
US).
This and host stadiums in Guadalajara, and Monterrey are
being upgraded including their AV infrastructure. d&b, for instance, is the
sound reinforcement partner for the renovation of Azteca. “The World Cup is
driving a general increase in quality awareness for AV in sports venues all
over Latin America,” says Stumpp.
However, according to Manuel Suero, CEO of NTX Distribution,
Powersoft’s Mexican distributor, the original master plans for three venues
were scaled back to a “minor facelift”. Other soccer stadia are also being
revamped or constructed. Mexico City club Cruz Azul is evaluating five new
locations. León, in the northeast of the country, is building a new stadia
designed by the Mexican branch of HKS Architects.
The FIFA World Cup is widely expected to stimulate
significant investments in transportation and hospitality with onward demand
for AV solutions “to enhance fan experiences, broadcast capabilities, and event
management systems,” reports Jonker.
Suero confirms: “Mexico stands to benefit both during and
after the event. However, the challenges associated with the costs of
preparation and the social impacts of rapid development will require careful
management.”
Plans include 13 new passenger train routes covering 3000km.
Major hotel groups identified by Suero are expanding their current portfolio in
Mexico, mostly at beach resorts. Luxury hotels opening this year include The
Park Hyatt at Cabo del Sol, Dream Valle de Guadalupe, Rosewood Mandarina,
Riviera Maya,
Breathless Puerto Vallarta, Dreams Grand Island Cancun and
TROBBU Tulum.
There is a great deal of investment in airport remodelling
across the country too “with expanded retail outlets, waiting areas and
check-in desks inside terminals as well as critical maintenance of runways and
platforms,” reports Martinez.
Monterrey, Guadalajara and Puerto Vallarta airports, are
ensuring their facilities are “worthy representatives of Mexico” for tourists
during and after the event. dvLED is gaining an increasing share of the Mexican
AV market as a result with installs of Peerless-AV systems in airports and
corporate HQs.
Trade war
The spectre of tariffs hovers over north-south trade though specific impacts on
AV are unclear at this point.
“Companies operating here should consider diversifying their
supply chains to mitigate potential risks,” advises Jonker. “As we say: you
shouldn’t worry about the weather, because you cannot influence it - but you
can dress for it.”
If trade wars escalate, Herrera believes it will affect
local industry “given that most companies import through hubs and freight
forwarders in Miami and Laredo (Texas). So far, the direct latent threat is to
Mexico, but extensions to other countries in the region cannot be ruled out.”
Mundackal believes tariffs could “severely” affect AV across
Latin America. “It’s a price-sensitive market, and tariffs could impact
purchase decisions, budgets, and project delays.”
While trade tensions between North and South America could
affect AV hardware costs, particularly in terms of imported technology and
components, Tirado points out that Mexico’s Free Trade Agreement with Europe
helps to mitigate significant disruptions.
Barden, however, thinks Mexico’s entertainment market could
see some benefits, especially from a boost in tourism.
“As Canadians look for alternatives to US. vacation spots
like Florida and California, we’re seeing a rise in tourism to Mexico,” he
says. “This uptick is already fuelling new AV projects, particularly along the
Pacific coast and the Riviera Maya, as both North American and European
tourists flock to these areas.”
Stumpp says Mexico’s hospitality market is exhibiting
significant demand for high quality products in ‘theme restaurants’, where fine
dining is combined with clubbing and performances, or a stylish bar area is
added.
“This can be seen in tourist areas such as Riviera Maya or
Los Cabos but also in major cities,” he says.
Wallace reports growth in Mexico’s theme parks where
VidantaWorld and eco-themed Xcaret are expanding to offer live events.
No comments:
Post a Comment