CEDIA Study Looks To Define Market Scope
By Joseph Palenchar On Sep 19 2011 - 3:01am
Preliminary findings from CEDIA’s
first annual research study to track the size and scope of
the residential electronic systems market put the number
of residential installation companies in the U.S. at
anywhere from 17,500 to 18,500, each with annual average
gross revenues of $1.6 million.
The companies include 10,500 to 11,500 electronics
systems contractors, which focus on installing home
A/V and home-control systems.
The industry also consists of 2,500 to 3,500 security/
alarm dealers, 2,000 to 3,000 home-network/IT installation
companies, and 1,250 to 2,250 electrical contractors.
The number of installers was compiled from the customer
lists of 43 suppliers and distributors.
Separately, a survey of 1,286 installation companied
determined that installation companies generate annual
gross revenues of $1.6 million each. With the number of
installation companies ranging from 17,500 to 18,500,
combined installer-level revenues range anywhere from
$28 billion to $29.6 billion in product sales and labor
and service charges.
Preliminary findings also reveal the percentage of the
responding 1,286 installers involved in such key product
categories as distributed audio and video systems,
home-theater/media-room equipment, lighting controls
and the like.
Final results will go beyond these numbers when all
data is collected, compiled and analyzed sometime in
the fourth quarter by Parks Associates, said CEDIA
market research manager Erica Shonkwiler. The numbers
will include channel-wide unit and dollar shipments
based on sales data supplied in confidence by suppliers
and distributors. The shipment data will be broken down
by product category and distribution.
Additional data will also include the number of people
employed by installation companies
In 2012, CEDIA will expand its research efforts to include
consumer research and building-trades research,
CEDIA is undertaking the research effort to quantify
the industry’s economic impact and employment levels
to enhance its position with government regulators and
politicians, help industry members make better business
decisions, and provide greater value to CEDIA’s
stakeholders, including better member services, said
CEDIA CEO Utz Baldwin.
For CEDIA, Parks is conducting the surveys, collecting
shipment data, interviewing industry players and