The 2025 AV Production Industry Outlook: Trends, Challenges, and What Event Pros Need to Know
If you’re involved in event planning, production, or venue management, you already know: audio-visual (AV) is no longer just about sound and screens. In 2025, it’s about strategic investments, seamless hybrid experiences, and staying agile as the market keeps shifting.
AV Production is Rebounding—and Evolving
The global AV production services market was valued at $55.34 billion in 2024 and is projected to hit $95.57 billion by 2032, reflecting a steady annual growth rate of about 7%[1]. That’s not just recovery—it’s a surge fueled by pent-up demand for live, in-person events, and a massive leap in technology expectations.
Industry sources indicate the venues and events AV segment is one of the fastest-growing, with global revenue for pro AV in events expected to reach $57.2 billion by 2029[2]. Within this space, corporate and business events account for about 40% of demand, followed by live entertainment, conferences, and other specialty gatherings[3].
What’s Driving This Growth?
1. Technology Advancements
AV isn’t just about better projectors or bigger screens anymore. AI-powered captioning and translation, immersive XR (extended reality), and ultra-HD displays are changing what’s possible at conferences and expos. Event organizers are investing in interactive digital signage, gesture controls, and touch displays to engage audiences in ways that were science fiction a decade ago[4].
2. Hybrid and Virtual Events Are Here to Stay
Even as live events return, the hybrid model remains strong. In 2025, around 80% of AV companies are now integrating collaboration software to deliver seamless virtual and in-person experiences[5]. That means more events are accessible to a global audience—and it’s raised the bar for flawless production on every channel.
3. Sustainability Matters
There’s more pressure than ever for AV companies and venues to go green. From LED lighting to low-power laser projectors and reusable staging, sustainable practices are quickly moving from “nice-to-have” to “must-have” in client RFPs and venue bids[6].
Don’t Ignore the Risks
It’s not all smooth sailing. AV companies are facing high capital costs—especially as many clients want the latest gear but don’t always have the budgets. Trade tariffs on imported equipment (ranging from 10–25%+) are pushing up prices, especially in the U.S. and Europe[7].
Skilled labor is still in short supply, as many technicians left the industry during the pandemic and have yet to return. And while demand is strong, economic uncertainty—including the risk of recession or tighter corporate budgets—means AV providers need to stay flexible and watchful.
What Do the Numbers Say About the Next 18 Months?
Our latest research forecasts three likely scenarios for the AV production industry:
- Best Case: A robust economy, high event demand, and easing tariffs could drive rapid annual growth (30%+), pushing indexed revenues from 100 to 160 by January 2027.
- Most Likely: Steady moderate growth (15–20% CAGR), with revenue moving from 100 to 130, as companies adapt to minor cost increases and stable event demand.
- Worst Case: A recession, event cutbacks, or tariff hikes could drive revenues down by as much as 30% (index 70) over the next 18 months[8].
Each scenario points to one reality: agility, smart investments, and client-focused innovation will separate the winners from the rest.
How Should Event Pros Respond?
For AV Production Companies:
Stay on top of tech trends and sustainability, diversify your service offerings, and keep a close eye on both cash flow and capital spending. Invest in talent and training to keep your team competitive.
For Event Organizers and Planners:
Prioritize AV partners who understand both in-person and virtual production, offer transparent pricing, and can help you deliver the kind of immersive experiences today’s audiences expect.
For Venues, CVBs, and Agencies:
Make sure your AV infrastructure can handle the demands of hybrid events, and work with production partners who can help you stand out to corporate and B2B clients looking for value, reliability, and creative solutions.
Want to see all the data, projections, and recommendations?
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Sources:
- WiseGuy Reports, 2024
- AVIXA, Industry Outlook, 2024
- AVIXA, Segment Analysis, 2024
- Bluewater Tech, 2024
- XtenAV, 2024
- AVIXA, Sustainability in AV, 2024
- OECD Economic Outlook, 2025
- [Full scenario modeling: Tree-Fan Events Productions, 2025; see full report for methodology and data sources.]