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CEA: Demand For Installed Home Tech Growing

Arlington, Va. – Installed home technology is strongly
solidified in builders’ portfolios of services and offerings, according to the
Consumer Electronics Association’s (CEA) “10th Annual State of the Builder
Technology Market Study.”

Entertainment and automation solutions are helping builders
differentiate their businesses, while more common home technologies like
structured wiring are necessary to compete effectively in the market.

“This year’s study confirms CEA’s long-held belief and
prediction that home technology would make a positive contribution to the
inevitable housing market recovery as home buyers’ digital lifestyles and
desires for energy efficiency factor into purchasing decisions,” said Steve
Koenig, CEA’s industry analysis director. “For example, home automation and
lighting controls tap into buyers’ rising concerns regarding energy costs,
while a focus on home theater and multi-room audio demonstrate that builders
can meet the growing homeowners’ demands to access entertainment anywhere in
the home.”

The study found an increase in installations across all
technology sectors, with the biggest gains in structured wiring (63 percent of
new homes in 2011 vs. 45 percent of new homes in 2010). Energy-management
solutions, such as automated lighting controls (12 percent vs. 7 percent) and
home automation (10 percent vs. 5 percent), were at all-time highs.

Entertainment features also performed strongly in 2011 with
the multi-room audio (23 percent) and home-theater (29 percent) installations
rebounding strongly after their recession-period lows.

The study also found that builders have embraced other
construction opportunities, such as remodeling existing homes (57 percent).
Even as the housing market shows signs of life, industry players should not
lose their focus on aftermarket opportunities, as one in five builders said
remodeling has generated more revenue than new-home building in the past 12

The CEA’s study was conducted in conjunction with the
National Association of Home Builders (NAHB) Research Center, which gathered
data through the Annual Builder Practices Survey, including new construction
information from U.S. homebuilders. The study provides home-technology
professionals with a better understanding of homebuilders’ perceptions of and
motivations for installing home technology in new home construction and the remolding

The “10th Annual State of the Builder Technology Market
Study (May 2012)” was conducted from Dec. 13, 2011, through Jan. 9, 2012. It
was designed and formulated by

CEA Market Research


The report is available free to

CEA member companies

Non-members may purchase the report for $699 at the

CEA Store.