Projection in decline, but high brightness leads the way

The front projection market is projected to reach a value of $4.5 billion by 2026, finds new research from Futuresource Consulting.

The figure is buoyed up by an industry-wide shift to high brightness, high resolution and SSL (laser lightsource), the technology required to reach these upper-brightness categories.

The industry has been in a state of flux in recent years, due to the well-documented component supply issues. Exacerbated by the pandemic, these limits have impacted almost every type of component, though the semiconductor industry has borne the biggest burden.

Due to shaky supply chains, nations are attempting to invest in local production. The European Chips Act announced by the European Commission aims to invest €43 billion in a semiconductor industry ecosystem.

If effective, this ambitious plan should double Europe’s semiconductor global market share from 9% to 20% by 2030.

Futuresource research shows that most core AV product categories have returned to pre-pandemic levels – or are at least close to doing so. Nevertheless, vendors are venturing forth tentatively at best. The ongoing supply chain disruptions and global instability are looming in people’s minds.

Despite an undeniable atmosphere of caution, projectors within the large venue and installation categories are seeing some uplift. The success of large art installations, like those seen during the mourning period of Queen Elizabeth II, has driven this trend.

Chip shortages and stock constraints are driving the front projection industry to prioritise higher-margin products. These outside forces are leaving their mark on the industry, with installation and large venue being the only segment to witness volume growth in Q2 of 2022.

Now retaining a 5% total market share, this segment is the silver lining of a rather cloudy quarter for the front projection market.

The dedicated home market has remained stable throughout the pandemic, as home-based entertainment was all that was available for many.

H1 2022 saw lockdowns across China which bolstered demand, and this is expected to continue across the current World Cup in Q4 2022 and the Olympics in the summer of 2024. Some 650,000 units are expected to be sold in 2022 – a reassuring figure that is edging the market ever closer to pre-pandemic levels.

Overall, the industry is still feeling the after-effects of the pandemic – though this isn’t inherently negative. Large meeting rooms will remain popular as they lend themselves to social distancing and collaboration, as well as downsizing office costs by knocking two rooms into one.

Projection is the clear winner in enabling these spaces. Corporate display is still expected to command just shy of two million units annually right up to 2026.

The feedback from the channel suggests that, thanks to their flexibility, these solutions are being used in office environments for small meetings where large format displays can facilitate social distancing. Thanks to their low ASPs, these solutions are becoming a solid option for businesses.

Freddie Mossop is a research analyst at Futuresource