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© 2019 IABM DC

The Report

The IABM DC Global Market Valuation and Strategy Report is an essential navigational aid for your business. It provides context to the market you're in and helps to fix your current position and provide a vision of the future. The report has been and remains the definitive valuation of the broadcast and media technology supply market, with detailed regional splits, product and segment analysis and forecast trends for the ensuing five years.
Produced annually, in addition to partner submissions it uses data provided from the Devoncroft BBS Market Report (including unpublished data) amongst numerous other sources to produce the best modelling and forecasting in the industry.
 

The report offers detailed market sizing information on products and services sold into professional media contexts.  Sizing of current year and previous year markets is provided on a 3-region basis (NALA / EMEA / APAC) for over 150 product categories and 10 service categories.  High-level forecasting is provided for 8 product segments (together containing the 150 product categories) and 1 services segment.  IABM’s status as the main trade association for suppliers of professional media technology, and the collaboration of its member-partners, provide the report with a unique level of detail and data accuracy.

What qualitative data does the report provide?

A discussion of the primary trends and market drivers of each product category covered by the market sizing is provided with the data on each segment.  More general trends impacting the sector (e.g. in the past trends in the behavior of buyers in the broadcast sector was a key topic) are discussed in separate sections and included with the purchase of any segment.  Many IABM members feel that the qualitative information found in the report is one of the best information sources for professionals new to professional media supply and looking to build up knowledge.

What data does the report provide?

What market segmentation is used?

In order to make the report and data relevant to different business categories, the total market for products and services is subdivided into logical segments. In addition to making the report easier to absorb, it also enables users to focus on the data and information most important to their interests.

Acquisition and Production

This segment represents all the equipment used to capture video and to perform live processing of content in a studio or on location. The primary components are cameras and associated accessories, lighting and specialist tools such as virtual sets, graphics and specific storage devices.

Audio

This segment covers the entire spectrum of audio equipment and systems from acquisition to playout. The segment is made up of acquisition, automation, monitoring and processing sub-segments. Intercom and talkback are also included.

Playout and Delivery Systems

This section looks at the infrastructure often controlled by the previous automation and control segment. Playout and delivery covers the master control area, distribution, delivery to the consumer and monitoring. Delivery mechanisms such as cable, terrestrial, satellite and IP are included.

Post Production

The post production segment is the second stage of content creation and includes the products used to finish and augment content. This is an area heavily influenced by the migration to IT and software solutions. The primary components are editors, graphics and animation, recorders and image processing systems.

Storage

Storage plays an important role across the full spectrum of broadcast and media operations. Some storage systems are applicable to, or shared by multiple operational activities. Therefore such generic storage is grouped in this segment. VTRs, tapeless storage, archive and media make up the sub-segments.

Test, quality control and monitoring

This is a wide ranging market which links with all the other segments and in some cases, adherence to regulations. Quality control can be a labor intensive activity so there is a drive towards automation and software based systems. This segment includes hardware and software generators and analysis tools plus video displays and multiscreen viewer processing.

Content and Communication Infrastructure

Broadcast and media systems operate through a background infrastructure, the primary components being video or IP routers and the associated cabling. This segment includes modular products which are part of the signal path such as transcoding, interfacing, standards conversion etc. Contribution and primary distribution networks are also included.

System Automation and Control

With a drive towards greater efficiency, automation systems have become increasingly important. Initially dominated by playout systems, automation now covers a wide range of operations throughout the content chain. This segment also includes management and business systems, news automation and workflow management. Software plays a key role in this segment.

Services

Previous reports have demonstrated the importance of this segment with the value growing fast and representing a significant proportion of the industry value. Included but not limited to, are: systems integration, managed service and transmission infrastructure services.

Key findings from the 2018 report

Following modest growth of 0.9% in 2016, the broadcast and media technology market in 2017 was relatively flat with a scant 0.07% growth, according to the newly released 2018 Global Market Valuation and Strategy Report (GMVR), published by IABM DC, a joint venture between IABM and Devoncroft Partners. 

The 2018 GMVR marks the final use of the traditional ten-segment broadcast industry model which has underpinned IABM’s business intelligence data and analysis since the very first GMVR in 2006. IABM launched a brand-new model earlier this year - the BaM™ Content Chain: from Creator to Consumer -  which will form the basis of future IABM products and services for members, including all business intelligence services and future editions of the GMVR.

The 2018 GMVR reveals that the gap between products and services continued to widen, albeit slightly, in 2017, continuing a trend that began in 2011. Revenues from hardware and software products (and associated support revenues) represented 43.9% of the total industry in 2017, or $21.9 billion, down 0.2% versus 2016. The compounded annual growth rate (CAGR) of product revenues from 2012-2017 was -2.0%. Revenues from services accounted for 56.1% of the total industry in 2017, or $28.0 billion, up 0.3% versus 2016. The compounded annual growth (CAGR) of services revenue from 2012-2017 was also 0.3%.

Although normal industry cyclicality and exchange rate fluctuations play a role in the newly published figures (all GVMR numbers are reported in US Dollars), a variety of other factors continue to impact the market, including:

 

  • Certain end-users are implementing, or planning for, a generational change in technology infrastructure (e.g. transition to IP-based systems, moving to the cloud, and the adoption of 4K for content creation and delivery)
     

  • Standards for IP-based production and delivery were finalized at the end of 2017 although only a few major broadcasters have so far transitioned to IP
     

  • Government regulation continues to impact the industry in certain regions. These include mandates for localized content, auctions of broadcast spectrum, and next generation broadcast standards such as ATSC 3.0
     

  • Media companies continued to launch new direct-to-consumer offerings during 2017 and, with that, they continued to shift their media technology investments in favor of solutions that enable them to become more efficient and agile 
     

  • The increasing importance of data in media companies’ strategies prompted some of them to adopt artificial intelligence solutions to automate operations and drive their direct relationships with consumers
     

  • Customer consolidation continued to exert pressure on the supply-side. In addition to greater supplier leverage, large customer organizations often centralize operations. Larger customers also mean fewer, larger deals with binary consequences for the supply-side
     

  • Media companies continued to develop in-house solutions (or acquire technology suppliers) through content management, to advertising technologies, to OTT services. In-house technology development enables media companies to solve interoperability issues, roll out flexible solutions and, most importantly, speed up technology deployment in an increasingly competitive environment
     

  • Media companies continued to adopt cloud-based solutions during 2017, with some major deployments in content management and playout. As a result of this, technology suppliers continued to move to more flexible, consumption-based business models 
     

  • Against this backdrop of industry-wide change, media companies and broadcasters are evolving their business models in order to thrive in the future.  Consequently, many end-users are re-thinking their traditional technology procurement and deployment strategies.  The impact of these decisions is likely to ripple through the supplier community for many years

The results from the 2019 report will be released shortly