Let’s talk integrated homes. Naturally this is changing how we live in our homes—but it is also impacting the wide world of how we manufacture and source all these connected products.
CEDIA recently released a study that examines the integrated home market by revenue and number of companies, areas of expertise, preferred brands by category, and typical project size. In the Fall and Winter of 2021-2022, it surveyed U.S. and U.K. markets.
This unique point-of-view provided by integrators can help manufacturers in navigating who they work with, how to work most effectively with current and prospective dealers, and what to anticipate, as plans for the future are identified.
Here is what it found. There are roughly 11,000 integrator companies operating in the U.S., with an average annual revenue of $2.2 million. Each average project size is $26,000 and on average 83% of the revenue is from residential projects, which is up from 77% in 2018. Looking to the future, 81% anticipate adding technical personnel in the next 12 months.
Integrators suggest some of the biggest growth areas including lighting and shading, lighting control, and networking. Other categories include audio systems, media rooms, dedicated home cinema, outdoor AV entertainment systems, security systems, and design services.
One point in this survey is that as we move to simpler solutions, the DIY (do-it-yourself) trends continues to put pressure on this market—but in a recent episode of The Peggy Smedley Show, I argue there is still work to be done. We need SIs (systems integrators) if we want our homes to operate seamlessly. Interoperability is still too big of a hurdle.
Another trend to keep an eye on is the consolidation in manufacturers—and we might see the same happen within the integrator community itself. We are already seeing it happen as the labor shortage persists.
Interestingly, the vote is split on whether supply-chain issues will improve in the next year or not. I would have suspected more would still have reservations about the supply chain, but perhaps there is some optimism here amid a market that in my experience hasn’t been very reliable in the past year.
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