Audio & Video Equipment Manufacturers NAICS 334310

May 28, 2025 - Cooler Growth Forecast

• Sales for the US audio and video equipment manufacturers industry are projected to grow at a CAGR of 2.99% between 2025 and 2029, slower than the overall economy's projected growth, according to a forecast from Inforum and the Interindustry Economic Research Fund, Inc. The durable goods manufacturing sector forecast indicates that the labor force is expected to diminish, barring immigration reform that allows greater numbers. However, new technologies could support labor productivity for the industry. According to the forecast, investment in manufacturing facilities could stem from a range of factors, including the need to shorten supply chains after disruptions to domestic and foreign production and freight transportation during the pandemic. Consumer sentiment is expected to improve in the forecast period, which bodes well for the sector. A factor that may curb consumer spending is higher tariffs on consumer goods.
• The Pro AV Sales Index experienced a slight dip in April 2025 month over month, while still supporting a trend of sustained growth, according to the Audiovisual and Integrated Experience Association (AVIXA). The Pro AV Sales Index registered 59.7 in April, a slight decline from 60.9 points in March. An index of 50 indicates firms saw no growth or decline in business activity; more than 50 indicates an expansion, while less than 50 indicates a decrease. Respondents cited several factors that could be a barrier to growth in the coming months, including concerns about tariff impacts, new hiring delays, and ongoing economic transition and uncertainty. In comparison, the monthly average index in 2023 was 58.8, representing a stable year but not as strong as 2022, according to AVIXA.

• According to the Consumer Technology Association (CTA) in Venture Beat, new tariffs imposed by the Trump administration on China, Mexico, and Canada are expected to prolong inflation and reduce US consumer purchasing power for technology products by $90 billion to $143 billion. The Trump administration has enacted a range of new tariffs, including on imports from China (on top of existing tariffs applied to Chinese goods), a tariff on imported steel and aluminum, and tariffs on selected imports from Canada and Mexico. The CTA said the tariffs would strain relationships with close trading partners Canada and Mexico and subject US exports to reciprocal tariffs. The CTA is North America’s largest technology trade association.
• Consumers may adjust their audio and video budget as consumer sentiment, an indicator of discretionary spending, continues to fall in large part due to tariff uncertainty and an expectation of higher prices, according to two major indicators. The final index of consumer sentiment from the University of Michigan dropped 8% in April 2025 from the previous month, according to CFO Dive. An index measuring consumers’ expectations for the future fell nearly a third since January, the steepest three-month percentage decline since the 1990 recession. According to survey director Joanne Hsu, “Consumers perceived risks to multiple aspects of the economy, in large part due to ongoing uncertainty around trade policy and the potential for a resurgence of inflation looming ahead.” The Consumer Confidence Index declined by 7.9 points in April 2024, compared to the previous month. Consumer confidence levels have fallen for five consecutive months, reaching levels not seen since the beginning of the COVID pandemic, according to The Conference Board, which publishes the monthly index.