DALLAS (September 16, 2016) - As adoption of home technology increases among consumers, home technology professionals are anticipating a strong year in 2016, according to a new report issued today by CEDIA at its annual trade show, the global showcase of the biggest thinking, innovations and connections in home technology.
Each year CEDIA conducts its Size and Scope of the Residential Electronic Systems Industry Survey to analyze the size of the industry and identify market trends. In 2016, the average system integrator is projecting 17% growth with estimated revenues at $2.5 million; CEDIA and research partner Parks Associates takes a more conservative view, estimating a 7-10% rate of growth in 2016, equating to revenues of $2.3 million.
Dave Pedigo, Sr. Director of Emerging Technologies explains, "We are now seeing a stabilization of the marketplace; 2014 was an exceptional year with an unsustainable 56% year over year increase in annual gross revenue. This market explosion was due to years of pent up demand and a healthier economy. While 2015 continued to be a solid year, revenues leveled off slightly, but is still an impressive 48% increase in annual gross revenue from 2013. While 2015 revenues are 5% lower than 2014, CEDIA believes the numbers are accurate and should be viewed optimistically, as market conditions have returned to a state of normalcy. While most of that pent up demand was released by the end of 2014, CEDIA expects growth for home technology professional's annual gross revenue in 2016."
Other key findings include:
CEDIA surveyed 653 respondents between June 22 and August 22, 2016 who qualified to participate because their firms install at least one of the relevant residential 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 Q4 of 2016 and is $1,000 for non-members and free to members.