The smart home markets on both sides of the Atlantic are in robust health and set for encouraging growth projections for the next 12 months. This is according to analysis from CEDIA in which it estimates the US and UK markets to be worth $29 billion and $2.9 billion respectively.
The 2023 US and UK Professional Smart Home Market Analysis was released by CEDIA in December, in partnership with market research firm Ancrage Consulting LLC, and for the first time, CEDIA bolstered integrator survey responses with specification data from D-Tools, Portal, and WeQuote, and insights from leading manufacturers and distributors.
Residential integrators of all types and sizes are represented in the reports. Data was collected through short surveys fielded to integrators from July-Aug 2023 as well as through actual sales pipeline reports. CEDIA has structured the analysis to identify key priorities, including the size of the integrated home industry, areas of expenditure, project size, frequency and type, preferred brands by category, and future trends and investment areas.
Giles Sutton and James Bliss of CEDIA will present the findings of the research at 15:00 today on the Smart Home Technology Stage in Hall 2.
They will cover key findings from both markets, including:
US
- The US market is estimated at $29B and is supported by strong industry growth projections for the next 12 months.
- Approximately 20,000 integrators are currently serving the US market.
- Integrators play a dominant role in product and brand selection, with over 80% indicating they have sole or “a lot of” influence over customer purchasing decisions.
- Integration firms complete a median of 30 projects per year and employ a median of five employees.
- Integration firms earn a median annual residential revenue of $900,000.
- There’s a growing trend toward a younger industry demographic, with 22% having entered the field within the past five years.
- Two-thirds of integrators indicate that workforce and labor shortages are impacting their businesses.
- The categories expected to grow the most over the next 12 months are lighting/shading, lighting control systems, and security systems.
UK
- The UK market is estimated at £2.9B and is supported by favourable industry growth projections for the next 12 months.
- Approximately 3,700 integrators are currently serving the UK market.
- Integrators play a dominant role in product and brand selection, with 80% indicating they have sole or “a lot of” influence over customer purchasing decisions.
- Integration firms complete a median of 14 projects per year and employ a median of four employees.
- Integration firms earn a median annual residential revenue of £300,000.
- There’s a growing trend toward a younger industry demographic, with 19% having entered the field within the past five years.
- Half of the participants expect to add technical personnel in the next 12 months.
- The categories expected to grow the most over the next 12 months are media rooms, home cinema, outdoor AV systems, and lighting/shading.
“This year’s approach to research was revolutionary thanks to our partnerships with D-Tools, Portal, and WeQuote, and greater industry cooperation,” said CEDIA Global President and CEO Daryl Friedman. “It is CEDIA’s unique role to provide this type of information for our members, which helps them run their businesses and guide us on how best to serve our industry.”
Further reading into the North American residential AV market can be found in Residential Systems’ State of the Industry report published in November, in which the magazine worked with Portal.io data taken from customer-accepted proposals to create a snapshot of how the business is doing and what gear is being specified for installations.
Anthony Savona, content director of the Future Publishing-owned Residential Systems, told the Daily: “Although the tremendous surge in demand that occurred throughout the pandemic has subsided, business continues to grow, albeit at a much slower rate than the previous years. In terms of the major categories, speakers continue to top the sales charts, followed by TVs and then receivers and amps, with lighting coming on strong.
“In terms of trends, lighting fixtures seem to be catching on with custom installation dealers and showed considerable growth in the last half of 2023. Lighting fixtures also had a strong showing at CEDIA Expo, as did dvLED videowalls and AV over IP.”
The Smart Home Technology Stage in Hall 2 has a range of free-to-attend sessions offering insights into various aspects of residential AV integration. Highlights include Opportunities in Sustainable Business at 14:00 today, and tomorrow’s Top 5 Opportunities for 2024 (11:00) and Neuro Inclusivity (13:00) sessions.
On Tuesday, CEDIA’s Walt Zerbe hosted ‘The Art of Securing Audio and Video: A cybersecurity perspective’ with Jeff Sonnleitner of Moraine Technical College and JB Fowler of Domotz, in which they pored over the IT risks and dangers facing homeowners, business clients and integrators. Smart Home Technology Stage sessions continue today and tomorrow in Hall 2.
The 2023 Professional Smart Home Market Analysis US and UK is free to download for CEDIA members from the CEDIA Store at my.cedia.org/Shop. Non-members may purchase a copy of the findings for $999/£999.
