New Xyte Data Report: Cloud and AI Set the Course for the AV Industry’s Next Decade

Xyte, creator of the first AI-powered cloud platform for enterprise teams, integrators, and manufacturers to manage connected devices at scale, today announced the release of its latest industry report, State of the AV Industry 2026 – From Hardware Silos to Physical AI, offering a comprehensive look at how cloud platforms and AI are reshaping the future of professional AV.

Based on insights from the 2025 AV Cloud Summit, polling of industry leaders, and real-world data from Xyte’s cloud platform, the report finds that the AV industry is at a pivotal inflection point. Cloud-based device management has become the norm, multi-vendor environments are now standard, and AI’s first major impact is emerging in operations – automating monitoring, triage, and remediation at scale.

“For more than a decade, the industry has talked about digital transformation,” said Omer Brookstein, CEO of Xyte. “Over the past year, we’ve been building the cloud and AI foundation to finally make it real. The next two years will define the next two decades of AV.”

Key findings from the report include rapid acceleration in cloud adoption, with Xyte reporting 300% growth in connected customer tenants and 445% growth in devices under management year over year. The data also shows that heterogeneous AV estates are becoming the norm, with nearly half of active customers now managing devices from multiple vendors – underscoring the need for a neutral, unified management layer.

The report introduces the concept of Physical AI: a model where cloud-connected AV devices evolve from static hardware into intelligent, continuously improving systems. By normalizing telemetry across vendors and applying AI agents in the cloud, organizations can reduce alert noise, lower incident burden, and resolve issues before users notice them.

“Physical AI is how AV catches up,” Brookstein added. “When every microphone, display, and switch is connected to the cloud and to AI, AV stops being a collection of boxes and becomes a living system. By 2026–2027, the industry will either embrace this shift – or risk being commoditized.”

With benchmarks on AI readiness, operational maturity, and cloud scale, the State of the AV Industry 2026 report provides manufacturers, integrators, and enterprise teams with a practical roadmap for the transition ahead.

Download the full report here.

Learn more and get started by booking a meeting with an Xyte expert.

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