Analysis: Spain installed AV market survey

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Regional Voices - Spain

We get opinions from across the country’s installation market to find out levels of confidence and the sectors of growth to look out for in the next 12 months.

Since the global financial crisis, the Spanish economy has been slow to recover, resulting in over a quarter of Spain’s workforce unemployed by 2012, and the property market hit particularly hard.

However, following the economic downturn, Spain considerably reduced imports and increased exports while maintaining strong tourist numbers, which led to the country achieving a trade surplus in 2013 for the first time in three decades.

Across the country’s installation market, confidence would appear to be growing, with the majority of respondents claiming higher confidence in the installation sector now than six months ago and the overwhelming majority believing their company’s revenue will grow by more than 5%.

In terms of vertical markets, corporate, retail and digital signage markets look to be showing the clearest signs of growth, whereas sports venues, worship and education are either showing no change or, in the case of sports venues and worship, may even be set to shrink.

When providing answers on what causes the most concern with regard to their own businesses, most of the manufacturers and distributors were concerned with clients going for lowest price rather than best value, whereas integrators were more focussed on cashflow issues.

The advice given to manufacturers looking to enter the Spanish market came from another manufacturer, Juan Antonio Casado, CEO of PosterDigital, who said: “Search for partners that give you value.”

AV/IT was a topic that came up in a number of responses offering advice to integrators looking to enter the market. However, there was a word of warning from Oscar Valero, product manager at distributors GAPLASA Professional Division. He stated: “At this moment, there are a lot of integrators working in Spain, so I think this is not a good moment to enter, unless they are specialised in something very unique.”

Lastly, respondents commented on what they would change about the way the installation market works in Spain. One distributor lamented the lack of AV consultants in Spain. “We miss the role of the AV consultant, as this it is usually done by the distributors and manufacturers. This would be a great improvement for the AV industry in Spain.”

Casado of PosterDigital added: “The installation market in Spain comes from before the internet and IoT explosion, and not many of the companies can manage mixed projects.”

Overall, it appears while confidence has returned to market as a whole, there remain issues within the country’s installation sector. There also seems an appetite for the country to embrace innovations such as AV/IT convergence and the IoT.