Logitech Analyst & Investors Day 2025
Hello and good afternoon to those attending here in Silicon Valley or watching online in the US, and good evening to those listening in from Europe. Thank you all for attending our Fiscal Year 2025 Analyst & Investor Day. Allow me to quickly cover today's agenda and we'll get started. Hanneke will lay out the vision and future of Logitech, focusing on where we play and how we win. You're then going to hear from Malin and Jay about our approach to innovation.
And our business group leads, Delphine, Prakash and Ujesh, will unpack the incredible opportunity we have across our product categories. Sree will then talk about our operations powerhouse. We are then going to provide an immersive set of product demos both here in Silicon Valley and online.
And then to wrap things up, Matteo is going to lay out what all this means for our forward-looking financial performance. He's going to cover the long-term model, the outlook for fiscal year '26, as well as outline our capital allocation priorities. We'll then take a very brief break before heading into Q&A, which will include all of today's speakers. Before we get started, I do have a few housekeeping notes.
First, I must point out that today's presentation includes forward-looking statements, including with respect to future operating results and business outlook. We're making these statements based on our views only as of today. Our actual results could differ materially, including due to factors that are set forth in our most recent forms, 10-K and Q, and subsequent filings.
We undertake no obligations to update any forward-looking statements. We're also going to refer to non-GAAP measures. You can find information about our use of these non-GAAP measures in our materials. Today's presentation is being recorded and will be available on Logitech's investor relations website along with the press release and the transcript.
And a second point, throughout our presentation, we are going to make reference to business and consumer revenue as well as define market opportunities as our serviceable addressable market. Definitions for these calculations can be found in the materials that will be posted to our investor relations website. So to get us all started, please allow me to introduce Logitech's CEO, Hanneke Faber. (audience applauding) - Thank you.
Great. Thanks, Nate. And welcome, everyone. It's a real pleasure to host you here at our own offices in the Silicon Valley. A special welcome to all of you who’ve flown in.
Erik, who has a huge conference going on, thank you. I didn't get a chance to say hello up front, but you're like a bit of a celebrity this week. I've been watching your videos, so thank you for being here. Appreciate it.
It's been a little bit over a year since I became Logitech’s CEO. And our team and I are super excited to share our plans with you. Today you're going to hear about our growth plans, our unique approach to innovation and to operational excellence, and of course you're going to see a financial roll-up. But when all is said and done, the story is really going to be pretty simple.
We are a growing and highly profitable $4.3 billion company, with a $24 billion market opportunity. We innovate at scale and we have significant AI tailwinds. You're going to see lots of examples of our AI capabilities and our AI innovation today.
We're leaders in our core categories and we have a very clear strategy to extend that leadership. And we couple that with a credible plan to achieve incremental growth in new verticals and adjacencies. Of course, we're not naive to macro uncertainty, there's plenty of that, but we have thrived in volatile environments bolstered by our operational resilience.
And finally, we're financially disciplined, balancing organic investment with financial flexibility and very attractive shareholder returns. That's the story you're going to hear today. I think it's an exciting story. So let's get started.
First, let me give you all a quick refresher on Logitech. So in fiscal year '24, we delivered $4.3 billion in sales, and that's split across three attractive main business groups, personal workspace at $2.1 billion,
gaming at $1.2 billion, and video collaboration and headsets at $800 million. We hold the number one or number two market share in 11 of the product categories that we play in, and we're number one in eight of those. We sell our products in two main channels. We sell them in B2C, to customers like Amazon, Best Buy, Mediamarkt, you'll know them. B2C represents about 60% of our sales, and that's mostly personal workspace and gaming.
We also sell to B2B customers, and that makes up about 40% of our business, and that comes mostly from personal workspace as well as video collaboration and headsets. We've installed a new organization that's called Logitech for Business last year, which is headed by Prakash, and he and his team own that B2B business end to end. We have a balanced global footprint with 44% of sales in the Americas, 30% in EMEA and the rest in Asia Pacific. We have a global employee base of about 7,000 people, and they're highly engaged. I'm proud that our employee engagements last year was at 78%, which is nine points above industry benchmarks. In Forbes' 2024 survey of the world's best employers, little Logitech ranked number 20 out of 850 global companies.
And as most of you will know, we have an absolutely pristine balance sheet with zero debt and a billion and a half dollars in cash. Now, with all these stats, Logitech today is a bigger and stronger company than before the pandemic. By the end of our fiscal year 25, Logitech will be more than 50% bigger than pre-COVID, all driven by organic growth. We've retained most of the market share that we gained during the pandemic, and we've step-changed profitability.
We were at about 11%, we're now at about 16%. And all of that creates a really strong position for future growth. We are confident that we can further accelerate growth as we approach the company's 50th anniversary in 2031. So let me talk you through how we plan to do this, starting from our foundational capabilities, then our big market opportunity and the macro trends, and finally, our strategic choices. So our growth has been achieved in no small part thanks to five foundational capabilities, which together form Logitech's unique engine. Those are R&D, the Logitech brand, our global go-to-market capability, our operations powerhouse, and sustainability.
We invest heavily in R&D, at about 6% of sales. That delivers a constant stream of superior quality, increasingly AI-enabled, new products. It also very importantly enables premium pricing. Our Logitech brand is a significant advantage. The brand has more than 90% awareness across major markets, and it has really broad shoulders.
It appeals to a large range of people from teenage gamers to corporate CIOs, and it appeals across many life stages, from your first headset in elementary school to the webcam that you call the grandkids with. There are not many global consumer brands of this size in any industry, but Logitech is one. We also differentiate ourselves with our global go-to-market capability. We have teams on the ground in more than 40 countries. We serve consumers and businesses in over 150 countries.
I've had the pleasure of meeting many of them in the last year, and I've seen that they deeply understand local customers and they're absolutely masterful at creating leadership presence in our stores, online, and in local culture. Logitech also continues to be an operations powerhouse. We manufacture five products every second, and we take great pride in doing so with superior quality, service, and cost. Since 2019, we've built a more resilient, more diversified global manufacturing footprint, which is serving us well today. And given how critical that capability is at the current time, you're going to hear more from Sree, our head of operations in a little bit.
And finally, Logitech continues to be a sustainability leader. We design for sustainability because it drives preference with B2B customers and with Gen Z consumers, and it often delivers cost savings too. Three out of four of our products are made with recycled plastic. We use low carbon aluminum and low carbon printed circuit boards.
We've replaced most of our plastic packaging with paper. And in the last year, we've started to accelerate circularity with new programs like certified refurbished. All of these programs create real competitive advantage, and you can see some of them at the food and drinks later on. Our capability...oops.
Our capabilities in each of these five areas are absolutely world class. They're hard to copy, especially as a set, and they have been, and they will be a critical driver of our results. Now let's look forward. So Logitech's revenue today is about $4.3 billion,
but our serviceable addressable market, or SAM, is about $24 billion, and it's growing. So here's what that's made up of. There's gaming, that's 6.5 billion, personal workspace at 5.7 billion, of which about half sits in the B2C channel and the rest in B2B. There's the B2B enterprise market at $9.8 billion,
which includes video collaboration, headsets, and the B2B personal workspace products that I just mentioned. It serves companies from large Fortune 500 firms to small and medium enterprises. And then there is a set of B2B verticals that we have only recently entered. Those are education, healthcare, and the public sector, which together represent an exciting market opportunity of about $5 billion. So together, and without double counting, that makes for that large SAM of $24 billion. We hold leading shares in most of this SAM, But as you can see, we still have a significant opportunity to gain more share of this growing market.
And we do project that this market will continue to grow at a very robust clip, because we're going to benefit from three macro trends, AI, new ways of working, and gaming growth. So let me touch on each of those. First, AI. There's no AID without AI, but what does that mean for Logitech? So the short answer is the AI revolution is great for Logitech. With AI, the world is coming to us.
AI models need precise, secure, multimodal inputs, and our devices are already in your hands, on your head, and in front of your eyes. And capturing text, images, video, and audio is exactly what Logitech is so good at. AI is helping our teams design exciting, smarter product experiences. We're well underway in bringing those to markets, new products, new agents, and you're going to see more of that later and throughout the presentation. A second secular trends are the new ways of working that we all know that have emerged after the pandemic, and they're going to continue to benefit Logitech.
Most companies and people have now settled into new working routines. Whatever their employer's policy, three out of four people around the world today work from two or more places. They work in offices, they work from home, from cafes, hotels, airports, and everything in between. You guys know the drill.
All of those places need mice, need keyboards, need headsets, and only a modest percentage of them are video conference enabled today. Wherever there's someone working, there's opportunity for Logitech. And finally, gaming continues to grow.
Men and women game. Younger and older people game. A few stats to illustrate that.
Nearly two thirds of all Americans have gamed in the last three months. More than 30 million gamers in America game more than 40 hours a week. GTA 6, when it comes out, is projected to sell more than 100 million copies, huge numbers. And gaming has become so much more than just a game. Gaming is a sport.
Esports are going to be part of the next Olympics. Gaming is a huge form of entertainment. For Americans under 45, more time is spent gaming than on TV and movies combined. Gaming is work.
More than half of gamers stream their content. Gaming is meaningful social interaction. 74% of gamers play with others. And gaming is a lifestyle. Take for example, Logitech's partnerships with brands like McLaren or Oreos. And what does all that mean for us? Whether you game a lot, whether you game a little, you'll want great gear.
And two out of three gamers plan to purchase new gaming peripherals in the next year. So against the backdrop of this large SAM and these favorable trends, we have put our long-term strategic choices and priorities in place. So let me unpack our strategy. It all starts with our mission, extending human potential in work and play. Yes, we are a technology company, but the reason we wake up every morning is to make people a little bit better.
We help you be more productive, to perform better, to connect more easily, and we do so in ways that are healthier for you and for the planet. So let's take a quick look. (upbeat music) - [Announcer] Our mission is to extend human potential in work and play. We've been doing it for more than 40 years. We started out designing the most natural way to navigate the world's first computers. Then we added more ways to serve as the interface between people and the growing digital world, helping people be more productive, perform better, connect more easily in more healthy ways.
Our products are more than just mice, keyboards, and cameras. They're an extension of the people who use them at work and play, an extension of their hands, their ears, their eyes, their voice in an ever expanding digital world amplified by AI. Logitech will extend human potential like never before.
The world is coming to us and we're ready. - So to support that mission, we have defined clear where to play and how to win priorities. But first, let me remind you of who we are. We are one trusted, iconic Logitech brand, and we're going to continue to build that brand with a combination of user centricity, superior products, world class design, and disciplined high ROI marketing to create an ever wider competitive moat.
Next, our where to play choices. We'll be focusing on design-led software enabled hardware. We are not a commodity hardware seller.
We have hundreds of in-house designers who craft our products to be beautiful, intuitive, and easy to use. And our hardware is chock full of sophisticated software and AI inside. In fact, we employ more software engineers than hardware engineers today. We will concentrate on the huge spaces of work and play. As you've seen, those are big growing markets with exciting opportunities to capture more share of a growing pie. We compete around the world.
As I shared before, we serve more than 150 countries, but our share of wallet is fairly different from one to the next. Bringing every market to the median represents a $1 billion incremental sales opportunity just by itself. We will get there with great local execution and disciplined reapplication of best practices. And as for channel, we'll continue to grow in the B2C market that we're historically so strong in, and we are doubling down on B2B with our new Logitech for Business organization. So let's dig a little deeper into B2B.
Our opportunity to double down on B2B is twofold. Our existing B2B business mostly serves large enterprises. We sell to 71% of the Fortune 500 already, but we believe we can drive significantly more sales in this segment by serving existing customers with a broader range of products and by driving penetration with medium and small businesses. And we will do that by driving the simpler, smarter, more sustainable solutions our enterprise customers love us for. And we will invest in expanding traditional and digital sales coverage, more boots on the ground, if you will, to accelerate growth in this segment.
The ROI on our sales force has been very strong, but as a relative newcomer in B2B compared to our legacy peers, our coverage today is relatively low. We're very confident that investments in expansion will drive strong returns. We also have a second distinct growth opportunity in B2B.
Our current enterprise business that I just talked about covers mostly knowledge workers, people like you and me who work in an office. That's about a billion people globally. But there are another billion people who work but not in an office. They're in education, they're in healthcare, they're in retail, manufacturing, and other workplaces. This is a massive Logitech opportunity. We are going to focus our investments on education, healthcare, and the public sector, all sizable growing, profitable markets where our current product portfolio has proven relevance.
Entering these new verticals represents an incremental $5 billion market opportunity for Logitech. We have strong reason to believe that we can be successful in these new verticals. We entered education a few years ago and have consistently grown double digits in that vertical. We've made early entries into a few specific hospitals and public sector entities, and they have also been very successful. This gives us confidence that investing into an expansion of go-to-market coverage and expertise across education, healthcare, and the public sector will yield attractive results.
Those were our strategic where to play choices. Now on the how to win. At the very core of how we win, our bread and butter, are superior products and innovation. That's been true across Logitech's history. And today, AI is an incredible force multiplier. We've embraced AI across our organization, and we're investing and making rapid progress.
So let me briefly touch on edge AI, agentic AI, and multimodality, and how those are helping us innovate. First, we anticipate a big shift towards Edge AI because intelligence at the device level is faster, more cost efficient, and more private and secure. We're already leveraging AI at the edge today, across a range of products like the Zone 2 Wireless Headset and the new Spot Sensor, as well as our Sight video camera. We're proud that the Sight was named one of time's best inventions of 2024.
The Edge AI market was worth $27 billion last year. By 2032, it's projected to be 10 times bigger. The world is coming to us, and it's giving us a host of smarter innovation opportunities. The world is also speeding towards agentic AI.
At some point in a not so distant future, we'll all have our own personal AI assistants. And as you probably know, Logitech is developing intelligent assistants already. You're going to have a chance to experience our intelligent game streaming assistant, which we recently developed with Nvidia, later today. Agentic AI is a $5 billion market today, projected to be close to 50 billion by 2030. Agents themselves are an opportunity for Logitech, and so is the fact that agentic systems will increasingly depend on secure, precise multimodal inputs, inputs that Logitech's products are so good at capturing. Which brings me to multimodality.
We're already helping our users access different generative AI models. Good example is our AI portal in China, which provides one touch access to Baidu's Ernie Bot. But multimodality isn't just about mice and keyboards. AI models have to clearly see and hear people to operate at their best, and that multimodality is an opportunity for us. We've got world class capabilities in high quality, secure audio and video.
And our products, which adhere to the highest privacy Swiss standards, are already in your hands on your head, in front of your eyes. People are going to access AI through Logitech whatever mode or model they use. So we believe that in an AI world, our superior products will win. Foundational AI models are critically important, but users are less concerned about which AI model they use. What they care about are helpful AI solutions integrated in their daily lives. AI models are necessary, but product experience always wins.
And in that world, we have an advantage start point, and we believe that our new generations of AI-enabled products are going to be winning for many years to come. Finally, our last strategic choice. We'll continue to drive our unique capabilities as an operations powerhouse. Our super resilient global supply chain will deliver top quality service for customers around the world, however choppy the geopolitical waters might be. And our local sales and marketing teams will execute with excellence as they illustrated so very well during the Q3 holiday season. So with this set of strategic priorities in place, we believe we can accelerate long-term growth, mostly driven by organic growth, and we also believe we can further grow our operating income margins.
Matteo will go into more detail on our long-term model at the end of today, but for now, in closing, I'll just say I am excited about Logitech's future and the value we can create for investors. We're growing, we're highly profitable, and we play in a very large market, which is growing too. AI is a major tailwind. We lead in our core categories with a clear strategy to extend that leadership. We have a credible plan to grow faster by growing in new verticals. We are resilient thanks to that incredible operations team, pointing to the back of the room where Sree is sitting.
This is so important today and we cannot outrun the bear, but I definitely believe we can outrun the other campers when it comes to operational resilience. So there you go. You can count on us for financial discipline and attractive shareholder returns.
And with that, I'm going to hand it over to Malin and Jay to discuss our unique approach to innovation. Thank you. (audience applauding) - Thank you, Hanneke. I am Malin Leschly, Chief Design Officer. - And I'm Jay Wilder, Head of the Digital Office.
- I will walk you through the three parts to our innovation approach and Jay will be back to talk about how we deploy it in the age of AI. So let's start with the three parts. Advanced R&D and technologies are mapped to distinct user and chooser insights and amplified by strong partnerships. You're going to see the outcome of this approach today in the product demos for those of you here in the room and in videos online. We innovate around users’ desire to interface with the digital world.
From the mighty LogiMouse in the very beginning, to mice for every hand, to immersive play and work experiences, like the AI digital cocoon. And as Hanneke mentioned, we're in the midst of rapid AI-driven change. We are in a new AI era of coexisting interfaces. Precision-based interfaces will continue to remain relevant. Intent-based interfaces will grow in relevance as AI adoption increases. Essentially, our interface with the digital world is expanding.
But as we look at these rapid changes, it's important to remember that while technology changes quickly, human behaviors change slowly. And it's at the intersection of these two that innovation happens. At Logitech, design is a catalyst for innovation.
We have global target audience teams immersed in the daily lives of our users and choosers. You see just some examples here, whether it's advanced users hyper-focused on performance and staying in the flow or a student in a distraction-filled classroom needing to focus to learn, or a gamer who knows that gaming on more platforms means more play, or like many of us, a worker with colleagues both in and beyond the meeting room. Our deep immersion with users and choosers uncovers distinct insights within and across our target audiences and markets, invaluable for design and innovation.
We map R&D directly to these distinct user and chooser insights. And at Logitech, R&D means design and engineering working closely together with our business groups. And we have impressive global R&D teams. We're ranked in the top 100 of all US design patents. We have R&D labs in the world's top innovation hubs.
And we have many industry firsts, from the wireless mouse to TRUEFORCE that many of you are lucky to experience in person today or see the video. And it shows in the awards that we're getting, 55 last year alone. So how do we do it? We integrate performance and ergonomic science with sophisticated craft, machine learning and AI, and technical and human user testing, equally discerning whether it's a professional streamer or an inquisitive student.
And we test these products to understand their superior technical performance and how they extend human potential: the superior performance, the increased productivity, the unleashed creativity, and the seamless collaboration that our users and choosers seek. And we don't just innovate on our own. With our Swiss heritage and global presence, we are a trusted partner. We work across operating systems and platforms. And as a result, we have partnerships and deep integrations with six of the magnificent seven and many others across work and play, which brings us back to where we started.
These partnerships amplify our advanced R&D technologies that we map directly to our distinct user and chooser insights. And we deploy this at scale across our portfolio. And on that note, I'm going to hand back over to Jay. - All right, thank you Malin. So we sit in a privileged position at the edge of the human and digital interface, and today we use that position and AI to create rich audio and video experiences. But as we all know, the world of AI is changing fast.
Every week, there's an announcement of something exciting from somewhere in the industry, sometimes it feels like every day. And for us that means we get to take advantage of these advancements. Our chips that we use get better every year.
The models are getting smaller and more capable, and this rapid progression will open up new opportunities for Logitech. As Hanneke mentioned, we see three areas of innovation in AI. First is at the edge. AI is moving closer to the edge and closer to Logitech. These smaller local embedded models running in our software and our hardware put us in an excellent position to ensure trusted and frictionless experiences while maintaining privacy and security.
We do this today in audio, enhancing users' ability to hear and be heard, and in video, making sure that users are seen clearly and accurately in all conditions, from the desk, to any position in their collaboration spaces. Our edge processing capabilities allow us to do this securely, simply, with minimal setup and with efficient and sustainable low power processing. Second, in a world where AI agents work and play with you and on your behalf, trusted and contextualized inputs become critical to serve users well.
We have an important role to play here. As market leaders in many categories, we can provide more human-centric AI interactions that understand context and adapt to user needs. Developed in collaboration with Nvidia, and you'll see this later today at the demos, the Streamlabs AI agent is an example where we deploy an agent working with you on your behalf. In the future, we're all going to be managers of an AI agent workforce. And the combination of voice, video, and precision input is going to be essential to these interactions. Which brings us to our third area, enabling content-rich multimodal workflows.
We see the opportunities to create even more immersive experiences where AI can simultaneously reduce distractions and enable flow, whether you're in a game or in a work session. And AI is not new to us at Logitech. We deploy in-house built services leveraging all the latest LLMs to accelerate and enhance our product development from engineering through design and operations. We've invested heavily over the last several years in recruiting amazing software engineers across the globe so that we can run towards the AI enabled future.
We have multiple teams of AI and machine learning experts, building AI into the products that we make today. And you'll see those experiences at the demos in a little bit. And they're also defining the next generation of experiences for our future.
We're excited about the opportunity ahead. And on that note, I'll pass it over to Delphine, our Head of Personal Workspace. (audience applauding) - Thank you, Malin and Jay.
Welcome to Personal Workspace. I'm Delphine Donné and I lead this great business and team that I represent today. I've been in tech for more than 27 years, leading in various businesses, transformation and innovation.
And I worked and lived in Silicon Valley, Shanghai, Europe, and I'm now based in Switzerland. Personal Workspace is a strong and growing business, which was $2.1 billion net sales in FY24. It is home to many different categories, all of which help our users across the world to connect to the digital world in B2B and B2C, We are leaders in growing markets and a consistent growth engine for Logitech. Between FY18 and FY24, we grew at a 9% CAGR while the market grew at 6% CAGR, and we gained shares, at least one point per year.
As a result, we are the number one brand in most of our markets and categories. And it's true that some of these growth came from the evolution of work with more people working in more spaces, but there is more to that. We transformed our categories and the market. We completely redesigned our portfolio and reinvented our categories.
This was a much needed evolution from a sea of full size and black plastic devices that excluded many people to desirable, inclusive, and sustainable tech. One size does not fit all. As a leader, this has also stimulated the market. In aggregate, if we look at our three largest categories in Personal Workspace: mice, keyboards, and combos, Logitech average selling price in the market grew 46% over the past four years, thanks to our deep audience focus, superior innovation, and portfolio evolution, which encourage our users to upgrade to a more premium experience or to buy an extra device from Logitech.
Our diverse portfolio also brought new users into our categories and brand. For example, we attracted more women and younger shoppers. By designing our products better together, we... By designing our products better together, we increased cross sell opportunities and upgraded people from a corded to a wireless product or from an entry price point to our premium lineup like our Ergo or MX series. And this added value will continue to be a key driver to our growth. So our categories will continue to evolve, and this is why: There are over 1 billion knowledge workers across the world who need our devices to create, produce, and connect.
On top of that, hundreds of millions of people need peripherals at home for personal activities. So within these large growing groups, specific high value audiences are growing even faster. For example, health enthusiasts. Wellbeing is a universal need, and our Ergo series has been a key driver of our growth in B2B and B2C.
Advanced users such as software developers, creative professionals, or financial analysts navigate more complex tasks, and often across multiple screens. And for example, the community of GitHub grew by 60% in just two years, and this has a strong positive impact on our premium product. Our tools are critical for them to perform at their best. And on-the-go users are about 550 million globally.
Many of them are frustrated with their mobile experience and we can help them work beyond the desk and beyond the PC. So more people working in more spaces for us to equip. Work happens anywhere today. According to our global research, three in four people have two places for work, at a desk and on the go.
And no matter where you work, you would expect the experience to be the most productive and comfortable, and yet a large portion of users don't even have a mouse and a keyboard today. These activities span multiple devices, a phone, a tablet, and a computer. And we want to be perfectly compatible with any device you have, regardless of the operating system, and that's not easy to do. And we've achieved it thanks to our unique relationship with many large partners, and this expands our business. So for example, our tablet accessories to date have been largely dedicated to the iPad keyboard, but now with the Keys-To-Go 2, we also address Android tablet users.
So Logitech leads the market with this diverse, sustainable, and cross-OS innovation. And what is unique about the Logitech brand is that we also unleash people's digital life from six to 99 years old. We are here for you from your first iPad accessory for early education to your complete MX ecosystem as your needs evolve. But we have the unique ability to bring people into the category, build loyalty, and drive cross-sell and upsell.
Our personal workspace solutions are also at the heart of the rapid AI transformation. For example, our webcams already use AI computer vision to improve image and audio quality. Our mice and keyboards are just one click away from Co-Pilot, ChatGPT, Deepseek, or any AI agents, thanks to Logitech Options+ software customization, which is actually easy to set up and I would encourage anyone to try it. We also master other AI modes of input, such as voice, image, or video, and a lot of experiences and innovations are ahead of us. All of these fuel our markets and performance.
We play in sizable and growing markets. Our biggest markets are keyboard, a $2.1 billion market growing at a 9% CAGR. Mice, a $1.8 billion market growing at a 3% CAGR.
iPad keyboard, also growing, and a $1.4 billion market. And the number for tablets does not include other iPad and Android accessories. Lastly, webcam is a $400 million with a 17% CAGR growth. This adds up to a total SAM of over $5.7 billion,
and it is a large market that will continue to grow. And we see many other opportunities to grow further with AI multimodal, and by expanding in B2B and B2C beyond the desk and beyond the PC. In fact, in just the past two years, we entered or created adjacent categories with the Casa Pop-Up Desk and the MX Reality Stylus for example. These new opportunities are 100% percent incremental. So let me share about our strong strategy to deliver consistent and profitable growth now and in the future. First, we will stay focused on specific audiences to innovate with deep user understanding, giving us more opportunities to cross sell and increase Logitech brand loyalty.
Secondly, we will continue with superior innovation, expanding our portfolio designed better together with deep AI and digital immersion. And we'll continue exploring new adjacent categories. And third, Logitech's go-to-market excellence is key to our winning recipe with exceptional marketing, high performing media, and trusted customer relationships in B2B and B2C. So let me show you how this strategy comes to life with our MX series portfolio. Our MX series is specifically designed for advanced users, advanced users like yourself, and our MX keyboards and mice are the reference premium products in their category.
The quality of these experiences has led to strong loyalty, which leads to more cross-sell opportunities. And over the past two years, we expanded the MX portfolio from two to five categories by adding MX Brio webcam for example. The launch of MX Creative Console last year in October is another example of superior and premium innovation. It's been designed for creative professionals in close partnership with Adobe to provide the most intuitive and fluid experience for them to perform editing tasks even faster.
And this superior innovation helped attract new users to Logitech and sell more MX products to existing users. So two in three people who bought MX Creative Console already had another MX device before. And finally, MX is a perfect example of go-to-market excellence with exciting in-store transformation. At Mediamarkt in Germany and thousands of other stores across the world, you can touch and experience the full MX ecosystem. You can explore Options+ software and webcam features, engaging customers and driving upsell.
So to conclude, we have all it takes to maximize the opportunities coming our way. We have more people, more spaces with deeper immersion across more devices with AI superpower and multimodal inputs. We will continue to grow the personal workspace business with a superior portfolio that serves a very large audience with different needs in a way that is good for the planet. All I can see are exciting opportunities to fuel Logitech’s strong and profitable growth now and in the future. Now let me hand over to Prakash. Thank you.
(audience applauding) - Thank you, Delphine. Hi everyone. I'm Prakash. Before I begin, I want to tell you a little bit about myself. I've been at Logitech 9 1/2 years.
And during some of that, I've talked to you pre-COVID, during COVID, and post-COVID, navigating pre-tariffs, post-tariffs, and really driving our operating backbone and growth. And I've talked to you about how we did that and our operational resilience, and we have an awesome team that's behind driving some of these results. And many of this, Sree is going to talk about today when you get a moment. You also heard me speak about our sustainability agenda, which we are continuously making great progress on.
I've lived right here in the Silicon Valley over the last 25 years, working across hardware and software tech companies. And over the last 1 1/2 years really focused on the video collaboration and headset business, helping steer our enterprise capabilities. And about two quarters ago we made an exciting change, bringing our products and go-to-market organizations together into a newly formed organization called Logitech for Business. And I'm going to talk you through this exciting division today.
So let's get started. So first, what is Logitech for Business? This is an end-to-end organization made up of sales, marketing, product, engineering, deep partnerships, and verticals, all focused with a single-minded purpose of serving many small and large enterprises through our B2B channel in over a hundred countries. From video conferencing in meeting rooms, to mice, keyboards, and headsets at your desk, flexible workspace solutions, and most of all, services and software to power the workplace. Over the last few years, we've built our enterprise capability. Now, in the past, many enterprise customers did not know how to buy from us.
They knew where to buy our products in retail. This is why we built our enterprise sales capability, to make it easy for them to buy from us from any channel. I'm happy to share that this business is already 40% of Logitech's net sales. So if you zoom out and look at where we've come from, we've more than doubled all categories going into the business channel from pre-COVID. This business has grown at the rate of 16% CAGR from FY19 to 25, coming from all core categories, video cameras, mice, keyboards, headsets, and webcams.
While we had a few quarters of decline, I'm happy to report that our unique breadth of solutions, our deep technology partnerships and a global enterprise go-to-market are yielding results. We are on track to deliver return to growth in FY25. What gives me even more joy is actually to share with you our market impact. 71% of global 500 use Logitech and are our customers. One in three meeting rooms and desks use Logitech.
We are market leaders in video conferencing and personal workspace solutions. In addition, we have strong technology partnerships that allow us to deliver amazing customer experiences. So where are we taking this? Let me talk to you about the key trends we are seeing and then I'll cover our market opportunity. If you look around the landscape today, when, where, and how work is getting done are all being redefined.
In reality, work is occurring across all spaces, across various devices, and people are already working in more spaces than ever before. We only expect to see this growing, and regardless of whether you're working remote or you're hybrid or return to office, AI is entering work unlike any time before. And there is a need therefore to modernize workplace experience, and we see this at our customers. Our customers in IT, facilities, HR are at the center of this, and they need to solve for it, optimizing workflows and transitions between types of work and space, mapping business optimization to employee needs, enabling AI-led workflows that help with productivity. And as companies drive more in-office collaboration, space utilization is becoming a bigger challenge, especially with shrinked real estate footprints. And helping IT teams remotely manage from any location and most of all to make sure the space is well designed and sustainable.
It's a lot, and that's ultimately the problem we're solving for our customers, because they are the center of this exact change. So instead of telling you about it, I want to share with you an example of how this is happening at one of our customers. They are Australia's leading renewable energy company with 30 power plants across Tasmania, and consulting services. And their primary challenge was maintaining connection and face-to-face interaction among a diverse and geographically spread workforce. The company needed a solution that would allow its employees to communicate and collaborate effectively.
This included even hydrothermal plants out in the middle of nowhere, and I sometimes jokingly call this the torture test for collaboration. Take a listen. - That was cool, right? Well, those trends are great, but you may be wondering how big is this opportunity? So I want to start with where Hanneke introduced this to you.
Our market opportunity is about growing the core enterprise space and then expanding into verticals. Let me start first with the core. We have a large growing core market that's 9.8 billion.
Now, within this market, we have video collaboration that is growing at 6%, and we've grown in the same market 29% in the last five years. And personal workspaces sold into the enterprise, a subset of what Delphine talked about, is growing at 6%, and we've been growing this at 17%. All-in-one displays, we just entered this market with the exciting launch of Rally Board 65. Enterprise headsets, the market's a big 1.8 billion market. It's declining at 3%. However, we've been growing in this market, taking share at 14% CAGR, and our relative new entry into workplace management, things like Logi Dock Flex and booking software, a big market at 1.5 billion.
All in, a big market with a nice Logitech track record brought to bear with differentiated solutions and focused sales execution. So let me double click on video collaboration. We believe there is a 28 million room serviceable opportunity. And analysts estimate 25% penetration of video in the same meeting rooms globally. And when you think of rooms, you often think of small, medium, and large rooms, places you might be familiar seeing our Rally Bars. There are also increasingly more spaces such as huddle rooms, open spaces, brainstorming rooms.
And while we think of these, there are some significant growth vectors. First off, penetration to more spaces is still a huge tailwind at only 25% penetration. AI is bringing more immersive technology in turn driving a tech refresh cycle.
Hanneke talked about the new ways of working and our proven ability to take share. And last but not least, our ability to attach services and accessories to every room, driving room ASP higher. Big opportunity. Now let me talk about personal workspaces. Now we estimate for every meeting room there are about 20 desks on average, which brings this personal workspace opportunity in enterprise to a 500 million desk opportunity.
Now, if you look at the growth vectors, employees need differentiated solutions at the desk. Delphine talked about how we bring great solutions to market. In addition, we're going to see more AI-led workflows that need better peripherals. We also expect to see a Windows 11 refresh driving new adoption, and there is a convergence between mobile and desktop operating systems that's going to occur. Big opportunity in this space, and Logitech is already the leader in this space. In addition to these two core markets, we see two product adjacencies.
Enterprise headsets, we've grown in this market faster than the market, and there is an oncoming wireless transformation which will drive new adoption, positioning our technology strength in our audio and wireless capabilities built with our consumer heritage as a core strength. We also see workspace management as an adjacent offering, that allows for managing space, environment, energy, devices, better for IT and better for facilities. We're going to market in this space with a combination of hardware, software, and services, bringing real incremental value to our enterprise customers already. Two really large opportunities.
Now, let me talk about verticals. Now, as Hanneke mentioned, we are seeing a big opportunity in education. It's a $2.4 billion market growing at the rate of 13%. And we've already registered double digit growth, winning many global customers. But more importantly, we see big tailwinds. Adoption of digital hyflex in higher ed, new learning models, and video spaces.
Put together, these enable us to bring market solutions with existing products and a new go-to-market motion. Think of it as essentially education solutions for all learning spaces. The second vertical opportunity is healthcare, $1.8 billion market growing at the rate of 15%. And again, the major tailwinds here are telehealth and AI for efficiency. You're probably seeing this at your doctors already, and it's just getting started. We've already registered some marquee customer wins in bringing audio, video, and input devices to healthcare centers, clinics, and hospitals.
We believe this is a huge new exciting opportunity area for us. The third opportunity to bring it home is our focus on public sector, which is made up of state, local, and fed. And I know the public sector is in the news an awful lot these days. But I'd like to remind you of something. We are a very small portion of the market today.
And as the market rapidly changes towards adopting more technology, we are well positioned to take share. This is an $800 million market just in the US and globally even bigger. Bringing all these three verticals together, it's an attractive $5 billion market, growing super nicely, with solutions we already have, that we intend to take to market with new go-to-market capabilities and execution. Okay, so I've talked about opportunities. What's our approach, our winning approach? Our winning approach is very simple. It's about reinventing workplace experience through simpler, smarter, and more sustainable solutions delivered with global scale.
Simpler, our portfolio is simple. It's simple to set up, quick to install, and brings the best of our design capabilities to solve user experience challenges. It's simple to manage, easy to provision spaces through Logitech Sync and Services, and most of all, super simple to use: to book, to meet, and collaborate. Our solutions are also smarter.
You have seen us launch smart switching powered with AI, the Time Invention of the Year award for Logitech Sight that Hanneke talked about, with the ability to frame the participants right. We call it RightSight. Done at the edge so you can see better. Being able to pick up the right sounds and filtering out the noise so you can hear better, all delivered in collaboration with our technology partners, Microsoft, Zoom, and Google. Based on their cloud AI capabilities, working in concert with our edge AI. Now, not just smarter, but smarter at the edge.
And when you think of productivity, meetings are the biggest activities at work. And we have now enabled the ability to name tag participants using our edge tech, so you can derive meeting summaries and actions, bringing multimodal context to workflows that Malin and Jay talked about. We launched a digital cocoon with Rally Board 65, enabling background blurring, noise reduction in open spaces, so you could be in your immersive cocoon in your meeting. Delivering best in class audio, video, and edge AI innovations. And you'll see some of this later today in our demos.
And more sustainable, we have designed all our products to be more sustainable, not just some, all our products to be more sustainable. Three out of four use recycled plastics. We use many sustainable materials.
We've enabled clean manufacturing. We're also the first company to carbon label our products, bringing accountability and visibility to our customers. And we are actively working on energy consumption of our products. Dimming not just our video bars, but also the displays that you see in a room. And through our service offering, we're now able to collect and recycle products so you can extend life and reduce waste.
And in the end, actually our customers demanded, especially our enterprise customers demanded, and it also saves them money. So just more sustainable, period. So in summary, we are enabling work everywhere, across all workspaces. We are inventing workplace experience through simpler, smarter, and more sustainable solutions, growing the core rooms and desks opportunity and the adjacencies and verticals, a $14.8 billion SAM, all underpinned by market tailwinds in AI, the tech refresh, and flex work.
So thank you, and over to you, Ujesh. (audience applauding) - Thanks, Prakash. Exciting stuff. So, hi everyone. My name is Ujesh, and I am the general manager of Logitech G, and today I'm going to give you an update on our gaming business.
But like others, I thought I'd give you a little bit about myself before I start. So I've been at Logitech just a little over 10 years. During that time, myself and the gaming team, we've grown our business from just under $200 million to over a billion dollars. Before that, I spent almost 14 years at Nvidia where I held a variety of positions. I was the GeForce General Manager and I was also Vice President of Product and Corporate Marketing there, reporting directly to Jensen.
So today I'm going to cover the gaming market. I'm going to cover some trends that we're seeing in the market, our target consumers, our strategic priorities, and ways of winning. So with that, why don't we get started? So our gaming business last year did $1.2 billion. We play across a variety of categories from mice, keyboards, PC headsets, console headsets, microphones, steering wheels.
And as I said, we did just over a billion dollars, 1.2 billion in net sales. If we look at the market trends, there's a number of trends that we see that are fueling and driving gaming's growth. I'm just going to highlight a couple of those today. The first one that we're seeing, and Hanneke alluded to this, is that gaming is more than just gameplay.
What gamers are doing is they're co-creating their experiences. In fact, 80% of gamers have played a game with user-generated content, and one in seven gamers have created content in a video game themselves. That's why games like Roblox, Minecraft, and The Sims consistently show up in some of the popular title gaming lists.
The global video game market also generates more revenue than streaming and box office sales combined. And nearly 80% of kids under the age of 18 spend 30% of their time playing video games. So these are some of the trends that we're seeing. Another thing that we're seeing is gamers love to show off their unique taste, their personal style, and their personal spaces. Gaming is an extension of your personality and your lifestyle.
You need to think of it as like sneaker culture or fashion. And unlike most other tech purchases, our gaming gear is a want. Gamers have an emotional connection with our gear, and what this results in is a lot of times gamers are buying more than one mouse, more than one headset, more than one keyboard, depending on the use case, the type of game they're playing, the style, or just the overall aesthetic they're going for in their room or environment. Another major trend that we see is, more than just entertainment, gaming is a nexus for friendship and social development. Gaming is a digital community where you can play with others across the globe.
It doesn't matter where you live or what zip code you're in. Now, if we look at the consumers we serve, they consist of PC Gamers, Sim Racers, and Console Gamers. So PC Gamers, they range from gamers that are investing in our gear for the functional and emotional benefit that our gear provides, but it also ranges up to Esports pros and professionals that are looking for the highest performing gear that gives them the speed and the accuracy that they need to win. On the Sim Racing side, it's racing game fans that are looking for fun immersion, but we also serve motor sports enthusiasts, looking for that purity and that mastery. And then finally, on the Console side, gamers play across a variety of different games and multiple platforms, from XBOX to Playstation and Nintendo. So I've talked about market trends, I've talked about the consumers that we serve.
Now let's look at some of the categories that we play in. I'm going to start with PC Gaming. So in the PC Gaming space, as I said, we cover mice, PC gaming headsets, keyboards, and microphones. When you combine all of these categories together, they represent a $4.6 billion market opportunity. And this grew at a 13% CAGR over the last six years. We have a very large opportunity here because if you look at the penetration rate of our gear, our gaming gear, it's still relatively low.
So driving attach and cross-sell is key here. If I look at the Sim Racing space, this represents a $500 million market opportunity and it grew at a 15% CAGR over the last six years, and our opportunity here is to get more of those racing fans to upgrade to our wheels, to deliver this more realistic immersive experience. A lot of these racing fans still use the standard XBOX or Playstation controller that ships with your console. So getting them to buy one of our wheels is another opportunity for growth. Now, in this space, we're an officially licensed wheels partner to Microsoft and Sony.
So they partner with us to help us tell this story to drive sales of our wheels because this also benefits them. Finally, the Console Gaming space where we play, and this represents another $1.4 billion market opportunity. So here we play in console gaming headsets, but also third party controllers. This market grew at a 10% CAGR over the last six years, and we're able to address this through our acquisition of ASTRO that we did back in 2017. So since then, we merged the ASTRO teams with our design and engineering teams, and we took that ASTRO line of console headsets, and we've integrated them under Logitech G.
And ASTRO, which was primarily only known in the US, our growth opportunity here is now to grow our business beyond just the US. In total, if you look at the categories that we serve, it represents a $6.5 billion market opportunity. So now let's take a look at our strategic priorities. So there's three strategic priorities that we believe will enable us to win. First is design by collaboration.
So design by collaboration is our methodology and how we partner with the world's top Esports athletes, but also motor sports professionals, and I'll talk about that. Second is superior innovation. We invest in design and engineering to ensure we maintain superiority across all of the categories that we play in.
And then last but not least is software-enabled hardware. Just hardware is not enough. We invest in software so we can unlock unique experiences, and I'll show you a couple examples of those today. So if we look at design by collaboration, to make sure we're designing to the exacting specifications of the Esports athletes and teams that we work with, we involve them in our design process. I'll give you one example of that. Our PRO X SUPERLIGHT 2 wireless mouse that we created, it took over two years to develop that product.
We involved over 50 different players. We had three rounds of shape testing and 12 different prototypes, and that's just one example. That philosophy extends to our line of racing gear as well, where we work with the world's top motor sports teams, but also professional drivers, folks like McLaren, Lando Norris, Bubba Wallace, Bianca Bustamante. And the result is we have some of the most realistic simulation products on the market. On the innovation side, if we look at PC Gaming, innovations like our HERO 2 sensor, our LIGHTFORCE switches, our LIGHTSPEED wireless, and our PRO-G audio drivers, they provide gamers with the speed, reliability, and the robustness they need to perform at their peak.
I'll give you another example. Our HERO 2 sensor delivers tracking speeds of over 888 inches per second, which is the highest tracking speed on the market. Our design by collaboration approach that I just talked about, this really helps us on the superior innovation side, because it gives us that deeper insight we bring the Esports players, and the work that we do is steeped in gamer research and science. You're going to get a chance to learn more about that when we do demos, and we also have another treat for you. You're going to get a chance to meet one of our Esports pros and talk to them live.
On the Sim Racing side, innovations like TRUEFORCE, which is our unique force feedback system, delivers a super ultra realistic experience. We've integrated it in over a dozen different titles. And what TRUEFORCE does, it connects into the in-game physics and audio engine of the games themselves, giving you a super ultra realistic experience. You can actually, when holding the steering wheel, feel the engine rumble. You can feel the different textures on the road when you're driving, and this provides some really real world benefits.
You can have better decision making, faster lap times, and if you don't care about that, it's just way more fun and immersive, and that's why most and a lot of the professio
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