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CEDIA Size and Scope of the Residential Technology Systems Industry Survey

Ed Wenck | Oct 24, 2018

As research and insights experts for the building and home improvement industry, we have seen positive growth across a variety of trades and product categories. The residential consumer electronics market is no exception.

This year’s CEDIA Size and Scope study highlights the continued success our industry is seeing as a result of many positive market factors: increased income, increased home values, increased demand.  However, there are headwinds that are limiting additional potential for the custom integrator market, notably:  a shortage of labor, the rising cost of materials, and increased DIY activity. 

Let’s start with the current state of the consumer electronics professional installation market.

Growth – with a Caveat

Installers are very optimistic about the near future with 80% stating they believe they will increase their firm’s revenue in the next 12 months, and estimating they will grow their business by 10% or more in 2018.

This year’s CEDIA Size and Scope study also revealed a shift in the types of work being done. With housing starts limping along (they’re estimated to be around 1.25M for 2018), many installers have increased the amount of commercial work they are doing. 94% work on commercial projects today compared to 75% in 2016. Home theaters and audio remain the biggest share of professionals’ revenue, which also have the highest average ticket size.

Research also revealed that security systems (alarms, video surveillance, etc.) saw the biggest increase in installation, going from 50% in 2016 to 82% in 2018. This may be a result of consumer awareness and demand but also likely due to increased remodeling activity. More homeowners are staying in their present residences due to increased home prices, low housing inventory, and rising interest rates.

A Mix of Business

New for 2018 is an understanding of where non-homeowner requests for tech installations originate. Home builders dominate this data segment with an average of 29 requests per year, followed by 17 from remodelers, 10 from designers and 8 from architects. This supports the finding that professionals have a mix of business from both new and existing construction.

 

CEDIA’s Size and Scope research continues to show steady growth in the industry. Professionals are optimistic and opportunistic, taking advantage of increased needs of the consumer as well ensuring a mix of business among residential, commercial, and new and existing homes.


The full report is available now. CEDIA members may download a complimentary copy of the findings and non-members may purchase the report for $1,000. 

For additional information contact Grant Farnsworth.

The Farnsworth Group is a custom research firm focused on the building and home improvement markets. We apply 30 years of industry expertise to design research that provides detailed answers on customer attitudes and behaviors, product development and brand health. We use both qualitative and quantitative methods when conducting research among Consumers and Professionals. For more information visit TheFarnsworthGroup.com.