The researchers, Purple Market Research Ltd, estimate that the UK market in 2004, in terms of end user expenditure (and excluding any cross-selling among suppliers) is worth just over £1.1bn. The market consists of five main product categories: professional lighting, pro audio for presentation and performance purposes, pro-audio for architectural or commercial purposes (e.g. voice alarm, public address systems), staging and professional AV. All product groups have shown a recovery in 2004.
The key industry sectors for can be split into business applications, such as architectural installations and corporate events, and entertainment applications, such as performing arts, broadcast & film and night venues. Each of the five is valued at over £100m and together they are valued at almost £800m (73% of the total market value).
The last year has seen the continued prominence of non-entertainment sectors, with the architectural and building services sector and, to a slightly lesser extent, the corporate events sector representing key growth areas. Prospects for both throughout 2005 look good, although a global economic slowdown and the possibility of further terrorist attacks are potential inhibitors.
Traditional entertainment sectors such as performing arts, attractions and night venues remained relatively static in 2004, although concert and touring had another very good year in the UK. The education sector was again a source of many new projects and facility upgrades, although what is often seen as the 'education market' tends to straddle other sectors with education developments often encompassing a variety of facilities including theatre venues, concert halls and studios.
An improved global political situation in 2004 led to a marked increase in visitors to the UK, including new visitors from Eastern Europe, Russia and China. The number of tourists from China looks set to increase dramatically over the next few years. 2004 also saw a return of big spending tourists from North America and the year was, in fact, a record year for inbound tourism in terms of volume and value.
It's difficult to judge what effect the terrorist attacks of July 2005 will have. In economic terms, there are hopes that the long-term impact of these attacks will be limited, but it seems likely that the UK, and London in particular, will be adversely affected to some degree.On a more positive note, the almost simultaneous announcement of London as the host-city for the 2012 Olympics brought some good news for the city. Major developments should benefit many entertainment and communication technology companies.
The global market is also showing signs of recovery. The global professional lighting, pro-audio, AV and staging industry is estimated to be worth approximately £10.7bn in 2004. After a decline in the global market value between 2001 and 2003, the last year has seen that decline arrested, with slight growth recorded on all product groups.
In the UK, a CBI survey of entertainment and leisure industries recorded high levels of activity and indicated that British businesses were the most optimistic in Europe about their prospects for 2005 and beyond. PLASA members are optimistic about 2005, predicting a 7% year on year growth, although given the current economic uncertainty in both the UK and global markets, PLASA believes that growth in 2005 is like
