Healthcare AV Vertical Markets. Corporate Education Government Retail Hospitality. Venues. Global End-User Perspective
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1 2015 AV Vertical Markets Global End-User Perspective Corporate Education Government Retail Hospitality Healthcare Venues infocomm.org/marketresearch
2 Copyright 2015 InfoComm International All rights reserved. Printed in the United States of America Published by InfoComm International, Waples Mill Road, Suite 200, Fairfax, VA No part of this work may be used, reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage and retrieval system, without prior agreement and written permission from InfoComm International. The contents of this work are subject to revision without notice due to continued progress in methodology, design, installation and manufacturing in the audiovisual industry. This material is sold as is, without warranty of any kind, respecting the contents of this work, including but not limited to, implied warranties for this work s quality, performance, merchantability or fitness for any particular purpose. InfoComm International and Acclaro Growth Partners shall not be liable to the purchaser, user or any other entity with respect to any liability, loss or damage caused directly or indirectly by this work. 2 Vertical Markets End-User Perspectives Study
3 Table of Contents About InfoComm International... 4 Introduction... 5 Study Methodology... 6 Research... 6 Analysis... 6 Assignment Timing... 6 References... 6 Contact Information... 6 Global Contacts... 7 Healthcare: Vertical Market Assessment End-User Interviews Executive Summary Products and Technologies Current AV Products and Technology Adoption Life Cycle Future AV Investment and Five-Year Outlook End-User Investment Decisions AV Purchase Decision Driver Channel Partners Impact of Convergence on AV Investment Decisions Value of the Integrated Service Provider AV Purchase Decision Factors Analysis Post-Installation Services Trends End-User Decision-Making Process AV Purchase Decision Organization and Degree of Centralization AV Budgeting Process and Sources of Funding Importance of ROI Sources of Information for AV Decision Makers AV Purchase Process Bid Out vs. Sole Source AV Purchase Process Spec-Driven vs. Consultative Concerns and Challenges Impacting End Users Appendix Geographic Region Definitions Vertical Market Segment Definitions Global Contacts, by Region End-User Interviews, by Vertical Acclaro Growth Partners InfoComm International
4 About InfoComm International InfoComm International is the international trade association representing the professional audiovisual and information communications industries. Established in 1939, InfoComm International has more than 5,000 members, including manufacturers, systems integrators, dealers and distributors, independent consultants, programmers, rental and staging companies, end users and multimedia professionals from more than 80 countries. InfoComm International is the leading source for AV standards, market research and news. Its training, certification and education programs set a standard of excellence for AV professionals. InfoComm International is the founder of InfoComm, the largest annual conference and exhibition for AV buyers and sellers worldwide. InfoComm also produces trade shows in Asia, Europe, Latin America and the Middle East. Additional information is available at infocomm.org. 4 Vertical Markets End-User Perspectives Study
5 Study Methodology InfoComm commissioned Acclaro Growth Partners to conduct a global vertical markets study covering trends and dynamics from the perspective of end-user organizations in the corporate, education, government, retail, healthcare, hospitality and venues segments. Research The data and information for this report was gathered through a combination of secondary research and personal deep-dive conversations and interviews. Secondary research drew on a wide range of published and online data sources to obtain relevant information in each vertical market. Information obtained through secondary research was used to support the interview process and make the interviews more effective. Insights were collected on market trends, issues, drivers and constraints, with a focus on their impact to the end user. The majority of the findings and perspectives put forth in this study were derived using primary research. The primary research consisted of approximately 170 personal interviews and conversations, the majority of which were with 130 end-user organizations in seven vertical markets and in all regions of the world. Interviewees also included manufacturers, AV and ICT integrators, distributors, manufacturer rep firms, design consultants and industry experts. See pages 7 and 8 for a break out of the end-user interviews by region and by vertical market segments. Analysis Qualitative comments such as the majority (indicating more than 50 percent) and most (indicating more than 75 percent) were used to indicate consistency of perspectives. End-user comments were used as representative examples, are identified with quotations, and are attributed to the type of organization making the specific comment. Comments such as several or some indicate multiple mentions but not necessarily the majority of opinion or circumstance. One-off comments were not included unless specifically identified. Assignment Timing The research and analysis for this study were conducted between January and May, References Please refer to the Appendix for definitions of the geographic and vertical market segment terminology used in this document. Contact Information Acclaro Growth Partners: Julia Baillie, Partner Phone: julia@acclaropartners.com InfoComm International: Kaitlyn McAuliffe, Market Research Phone: , ext kmcauliffe@infocomm.org 6 Vertical Markets End-User Perspectives Study
6 GLOBAL CONTACTS: All contacts, by region For this Vertical Markets End-User Perspectives Study, InfoComm interviewed 130 end users in seven vertical markets globally. Additionally, to supplement the information provided by end users, InfoComm contacted approximately 40 industry participants, including integrators, manufacturers, consultants, distributors, rep firms and industry publications. Total Contacts by Region all types (percent of total contacts) 30% 28% North America Asia-Pacific Europe 8% 14% 20% Middle East/Africa Latin America InfoComm International
7 GLOBAL CONTACTS: End-User Interviews, by vertical market The Healthcare Vertical Market Assessment is one in a series of reports published by InfoComm, collectively the Vertical Markets End-User Perspectives Study. InfoComm interviewed 130 end users in the following seven vertical markets globally. End-User Interviews by Vertical Market (percent of total end-user interviews) Healthcare Government 12% 11% Corporate 22% Retail 12% 12% 15% 16% Education Hospitality Venues 8 Vertical Markets End-User Perspectives Study
8 Vertical Market Assessment HEALTHCARE InfoComm International
9 HEALTHCARE: End-User Interviews InfoComm interviewed end users in the healthcare vertical market globally, including: Hospitals: hospitals, primary care facilities Specialty: specialty care and medical research facilities, meducation (university healthcare, medical education societies), labs, medical professional societies Healthcare End Users Interviews by Region (percent of total healthcare end-user interviews) 27% 27% North America Asia-Pacific 13% Europe Middle East/Africa 20% 13% Latin America 10 Vertical Markets End-User Perspectives Study
10 HEALTHCARE: Executive Summary Technology has become pervasive and we are increasingly confronted with it as part of our daily lives. As AV technology advances, this is driving adoption with healthcare providers. Many end users report that their organizations are looking to invest in technologies that both reduce costs and improve outcomes. These diametrically opposed goals are driving spending on AV technology. As reported in InfoComm s 2014 Market Definition and Strategy Study, the global healthcare pro-av market was $4.6 billion in 2014, and is forecast to reach $5.7 billion in The costliest one percent of all patients in the U.S. healthcare system consumes 20 percent of the nation s healthcare spending, according to federal data. So, healthcare providers are heavily motivated to leverage the latest technology if it will help them be more effective and efficient. The healthcare pro-av market in Europe is growing at a rate similar to the European pro-av market overall, but it varies substantially by country. Funding is the key issue, especially in Central and Eastern Europe, but also parts of Western Europe. Most of the growth is coming from the U.K., Germany and Scandinavia. In the Asia-Pacific region, many hospitals are upgrading their AV systems and capabilities, and this is driving growth. End users report that the Chinese government is increasing its spending on the social welfare system, and this includes technology investments for the more than 13,000 governmentcontrolled hospitals. However, the lack of good medical services is still a serious issue, especially in rural areas. The ultimate goal of investing in AV technology is for healthcare facilities to reduce costs of delivering care, while at the same time delivering superior outcomes. InfoComm International
11 The Middle East is investing heavily in pro AV for healthcare. End users report that the Saudi market is particularly strong as hospitals are increasing budgets and spending on technology. Most of the money spent in Africa is focused on delivering basic healthcare. There is interest from healthcare facilities in South Africa and Nigeria, but AV is a small part of their budget. In Latin America, healthcare is still an emerging market for pro-av technology. Many countries in the region have both public and private healthcare systems, and the level of care varies substantially from country to country. For the most part, the best care with the latest technology is only available to the rich. Healthcare focused systems integrators claim that the bulk of the opportunity exists with the corporate side of the market, and not with patient-facing technology. For example, the majority of pro-av projects include conference rooms and boardrooms, training rooms, lobbies, digital signage and way-finding. Patient-facing technologies are the domain of specialized technology integrators. Compliance is a huge commitment, which makes this a challenging market to enter, with significant barriers to entry. There is a lot of overlap between the healthcare and education segments. Medical schools have close relationships with healthcare facilities, and they are working together to train future healthcare professionals. Telemedicine and teleconsulting for remote diagnosis is a growing and important category. This is expanding access to healthcare for rural populations in both developed and emerging markets. Convenience is one of the greatest benefits of mobile apps, which is making them increasingly popular with smartphone users. The consensus is that wearable technology, smartphone-connected mobile medical devices and mobile apps will become more prevalent in care delivery. The Internet of Things (IoT) offers incredible promise to transform the healthcare industry. 12 Vertical Markets End-User Perspectives Study
Corporate Government Education Retail Hospitality Healthcare Venues. 2015 AV Vertical Markets. Global End-User Perspective
2015 AV Vertical Markets Global End-User Perspective Corporate Government Education Retail Hospitality Healthcare Venues 1.800.659.7469 +1.703.273.7200 infocomm.org/marketresearch Copyright 2015 InfoComm
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