CEDIA Report Finds New Connected Home Technologies & Rising Consumer Confidence Will Translate to Record Growth
At CEDIA EXPO yesterday in Dallas, CEDIA released results of its annual Size and Scope research project. It found that as more American homeowners purchase high-end home entertainment, lighting control, whole home control and security systems, the professionals they turn to for help in selecting and installing the components are reaping the rewards. The residential electronic systems industry will realize a third straight year of growth, according to the report.
Every year CEDIA conducts its Size and Scope of the Residential Electronic Systems Industry Survey to analyze the size of the industry’s workforce and pinpoint general market trends. The 2015 report predicts that by the end of this year, systems integrators and installers will complete more residential installation projects than in each of the last four years, and their average gross revenues will top $2.5 million, up from $2.2 million in 2014.
“2015 is not an aberration; it is the continuation of a three-year trend that shows our industry has not only weathered the Great Recession, but is also thriving and creating more opportunities for our members to take on more projects, hire new employees, and grow their businesses,” said Dave Pedigo, CEDIA’s senior director of learning & emerging technologies. “Despite a glut of inexpensive components hitting retail shelves, consumers are selecting new higher-end technologies such as Ultra HD/4K televisions and smart home components that tie their entertainment, lighting, control and security systems together. Our members design and install the systems that meet every consumer’s particular budget and lifestyle.”
After seeing the system integrator’s average gross revenues drop between 2011 and 2012 to just over $1.2 million, companies have enjoyed three straight years of revenue growth that is projected to top $2.5 million by the end of this year.
Home theaters and media rooms are the most popular projects, followed by multi-room audio and home automation and control. The total number of projects installers take on, and the average cost, will also both rise for the third straight year. In 2010, the average cost of a home theater installation project was $16,400. In 2015, that average project cost rose to $39,000, which is a two-fold increase.
However, that does not mean only the very wealthy can afford to commission these projects. The median home theater price systems integrators sold was $16,666 (50 percent cost less than), and the median audio installation was $11,000. In both instances, the average company also saw an increase in the number of home theater and audio installation projects in 2014 and that growth is expected to continue in 2015.
“Homeowners with a wide variety of budgets can turn to our members for help creating indoor and outdoor entertainment centers and to make their homes ‘enjoyable, intelligent’ and more secure,” Pedigo said.
“They view these investments as not just ways to improve quality of life, but also to increase the value of their homes.”
Today (Friday, October 16) at the CEDIA show, Pedigo will lead a presentation on the study’s key findings, and what they indicate for CEDIA members in 2016. The presentation will begin at 3 p.m. central time at CEDIA Booth #4170, and is open to all CEDIA attendees — no registration required.
The survey methodology CEDIA used involved surveying 676 respondents between July and September 2015 who qualified to participate because their firms install at least one of several relevant residential electronic product categories, including home theater/media rooms, distributed audio/video, systems integration/control, climate control and video surveillance. The full report will be available in fourth quarter 2015. For more information and to download a copy of the full report when it becomes available, please visit the CEDIA web site: http://www.cedia.net/programs/research/market-size-scope.