The ProAV distribution business always has infrastructure on the ground, but nowadays, distribution is much more than just logistics – the key drivers are value-added services. Over recent years, industry consolidation has given rise to two globally dominating ProAV giants, DCC (Exertis, Almo) and Midwich, each generating billions in revenue. However, further change is on the horizon.
The IT sector has demonstrated the path forward, with broadline distributors such as Ingram and TD Synnex achieving global scale through strategic acquisitions. Especially in the ProAV industry, distributors play a crucial role in managing the last mile to resellers, integrators, and major customers.
The Essential Role of Distribution in Digital Signage
The digital signage integration business has always relied heavily on distributors, as large, heavy displays and LEDs make logistics a formidable challenge. In the past, integrators haven often managed installations and rollouts on their own. Today, distributors are stepping in, handling configuration remotely and managing value-added services before delivery, making deployments much more efficient.
The Rise of Global ProAV Distributors
As distribution is a capital-intensive business, broadline distributors share the market with major international ProAV distributor groups. Irish firm DCC Technology (Almo, Exertis) and British-based Midwich have aggressively consolidated the European and American ProAV distribution market, acquiring multiple specialist firms across regions.
In the DACH region, Midwich has acquired companies like Kern & Stelly, New Media, MobilePro, Prodytel, and eLink – part of a broader acquisition strategy that includes more than 30 specialist distributors. Meanwhile, DCC has integrated Comm-Tec in Germany and Almo in North America under the Exertis umbrella.
DCC’s Exit from Technology Distribution
In late 2024, DCC, today primarily an energy trading conglomerate, announced a strategic shift, focusing exclusively on the energy sector. With its healthcare business already divested, DCC now prepares to exit the technology distribution market, too. The sale of Exertis could further shake up the digital signage industry, though whether Midwich or another player will step in remains uncertain.
Opportunities for Niche Specialists
While billion-dollar distributors dominate the space, specialized firms thrive through consulting expertise, flexibility, and product focus. In Germany, Concept International (Giada, Ledman), Delo, and Kindermann serve as prime examples, alongside ITZ, Bechtle’s distribution subsidiary.
For smaller distributors lacking strong specialization, survival is more difficult, as evidenced by the insolvency of Siewert & Kau. Some IT/AV distributors, including Api, Pilot, and COS, have responded by merging to create a single entity, strengthening their ability to compete with industry giants.
Industry Outlook
Value-added distributors remain vital to the ProAV market, providing essential services such as logistics, product training, project design support, demonstrations, and financing solutions. These offerings help manufacturers broaden their market reach.
Broadline IT distributors like Ingram and Also continue to supply a significant portion of digital signage hardware. However, the complexity of digital signage solutions and the high demand for consulting make it a challenging market for IT broadliners to penetrate effectively.
