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Distributed-Audio’s Potential Growing: CEA/NAHB Survey

9/06/2004 02:00:00 AM Eastern

More new-home builders are offering custom-installed distributed-audio systems as a standard or optional feature, and more new-home buyers are buying them, according to a survey of builders.

The survey was the second-annual builder survey conducted by the Consumer Electronics Association and the National Association of Home Builders. A total of 454 builders were surveyed randomly in February 2004 about their 2003 business practices. A similar number were surveyed in early 2003 about their 2002 practices.

The survey also found that builders became slightly less likely to offer custom-installed home theater systems and that the percentage of homes sold with custom home theaters dipped slightly in 2003.

The percentage of new homes sold with automated lighting and structured-wiring systems, on the other hand, went up in 2003.

Custom-Install Market Size

Estimated 2003 revenues of installing residential dealers (includes the dealers’ revenues from commercial sales)
Total revenue (residential plus commercial): $6.3 billion (+19%)
Total Commercial: $1.2 billion
Total Residential: $5.1 billion (+19%)
Residential Hardware: $2 billion
Residential Installation: $3.1 billion
Estimated 2003 residential revenues by product category (includes installation revenue, in millions)
Audio $1,400
Home theater $1,390
Controls $1,120
Wiring $470
Lighting $340
Security $200
PC Networks $180
Other $70
*(based on installer surveys conducted over past two years by Dallas-based Parks Associates, which incorporated estimates of dealer population from CEDIA and other third-party sources) ©TWICE 2004

Percent Builders Offering Distributed-Audio As:

2002 2003
Standard 1.5% 2.7%
Optional 51.3% 59.6%
Standard & Optional 4.0% 2.2%
Not Offered 43.2% 35.5%

Percent Builders Offering Home Theater Systems As:

2002 2003
Standard 1.3% 2.7%
Optional 50.5% 47.6%
Standard & Optional 3.3% 1.7%
Not Offered 44.9% 48.0%

Percentage Of New Homes Getting Distributed- Audio, Other Custom-Installed Systems

2002 2003
Dist. Audio 8.6% 12.0%
Home Theater 9.2% 8.7%
Monitored Sec. 17.7% 26.3%
Automated Light Control 1.0% 7.4%
Struct. Wiring 42.1% 58.5%

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