The home networking and home automation industry
is growing with more and more homeowners realizing the benefits
of home theaters, whole-house lighting and sound, media rooms
and whole-house subsystems that control security and HVAC systems.
As the industry matures, so does the search for answers to
some commonly asked questions.
Below, CEDIA has listed some
of the most frequently asked questions and answers about the
home networking and home automation industry:

What is home networking/home automation?
Home networking and home automation are catch
phrases that mean different things to different people. As
of yet, there is no universal definition of these terms.
When CEDIA members talk about home networking
and home automation, they are referring to the ability to integrate
televisions, lighting, home entertainment, sound, heating controls,
home security systems and many appliances and other systems
through a centrally-controlled network. These systems are custom-designed
and allow the homeowner the convenience, time-saving and cost-saving
benefits of controlling electronics through a central control,
or even remotely.
Many think of home networking as simply connecting
PCs. While this is a growing segment, it’s only the tip
of the iceberg in terms of what can be connected in a home.
CEDIA members are on the cutting edge of connecting
electronics systems for consumers. And more consumers are demanding
the benefits of connectivity – both in convenience, safety
and as a lifestyle enhancement.

How big is the home networking/home automation
market?
Since there is no universal definition of
home networking and home automation, it’s difficult to
measure the size of the market. We can say that the number
of homeowners who have embraced home connectivity as CEDIA
defines it has grown tremendously in the past decade, as newer
and less expensive technologies have been developed. More homeowners
are beginning to understand the value of these systems, in
providing security, comfort and cost savings to their families.
According to survey results released by CEDIA
in 2003, CEDIA member companies are positive about the growth
of the industry, with 71 percent of survey respondents reporting
that business increased in 2003.

In terms of sales, what is the largest segment
of the home networking market?
According to a CEDIA-sponsored survey released
in 2003, CEDIA members identified home theaters as the product
segment with the highest gross sales. They also expect home
theaters to lead sales growth in 2004, followed by home networking,
lighting control and distributed audio.

How would you describe a typical consumer?
Most homeowners who have installed home networks
or who favor installing a connected home are married couples
between 35 and 44 years old with teenage children, according
to a recent study by the Internet Home Alliance Inc., a cross-industry
network of leading companies advancing the home technology
market. CEDIA members report that most consumers of home networks
are very family-centric and want to create a safe and comfortable
environment for their families.

How many Americans have home theaters?
According to Parks Associates, a leading
high-tech research firm, penetration of home theater systems
stands at an estimated 28 percent of all U.S. households. That
percentage accounts for some of the most basic home theaters – including
systems costing only $500 – to some of the more intricate
home theaters that can range in price upwards of $250,000.

What is the outlook for the home networking
and home automation market?
All reports point to a healthy, growing home
networking industry. According to the CEDIA survey released
in 2003, 71 percent of the firms surveyed reported that business
improved in 2003. Seventy-three percent of the firms surveyed
said they intend to hire more workers in 2004. The growth of
the market will depend, largely, on the introduction of lower
cost technologies and the continued growth in consumer awareness
of the value of custom electronics systems for the family.

What are the benefits of home networking and
home automation?
According to CEDIA members and industry research,
those who have networked homes, or who are interested in adopting
home networking technologies, view these systems as a way to
save time and spend more quality time with their families.
Most customers buy networked systems for the benefits, not
for the sake of owning technology.

Will networked homes become outdated quickly?
How can you make sure you are up to date?
CEDIA members are on the cutting-edge of
technology and develop systems that are practical and pragmatic
for today’s homeowners and can take advantage of new
innovations as they come to market.

Can homeowners install their own home networks?
Many mass-market retailers provide kits for
simple home networking projects, or theater-in-a-box products.
While consumers can often install these products, CEDIA members
provide significant value to homeowners interested in a networked
solution. They can work with the homeowner to develop a plan – much
like an architect draws out a house plan – to ensure
the best networked-home experience. These systems are developed
to handle a customer’s needs today, as well as expand
to meet the needs of tomorrow.

What are the benefits of using a CEDIA certified
professional?
CEDIA is the worldís leading association
of custom electronicÝsystems technicians and provides the industryís
most comprehensive education to its membership. Members who
participate and excel in CEDIAís educational programs are given
the opportunity to earn certification. Consumers can rest assured
that professionals who are CEDIA-certified are the most highly
respected and experienced in the industry. More than 2,000
professionals have earned the CEDIA certification designation.
A list of CEDIA-certified professionals can be found on CEDIAís
Electronic Lifestyles® Finder
Service.
CEDIA companies subscribe to a strict code of
professional conduct and ethics and tend to participate in
continuing education to stay abreast of the latest technological
innovations. This expertise is what consumers are looking for.
In a recent survey of 1,000 consumers in the U.S., 87 percent
reported that they would seek the help of a qualified and certified
technician to install a home networking system in their homes.

When it comes to home networking and home
automation, what are some things homeowners should keep in
mind as they build a home?
Consumers should work with a builder who
provides the added counsel and advice of a CEDIA professional.
When building a home, it’s the perfect time to think
about how to wire the house for connectivity. According to
a Parks Associates survey of homebuilders, more and more homeowners
are interested in building a connected home. And many predict
the resale value of homes would increase if the home were pre-wired
for applications such as security systems, distributed audio/video
and home theaters. According to the National Association of
Home Builders, 34 percent of builders offer structured wiring
packages as standard or optional amenities, pointing to the
growing consumer demand for networked homes.

How can a consumer contact a local CEDIA professional?
CEDIA provides a list of CEDIA professionals
on its Electronic
Lifestyles® Finder Service.
Consumers can also call (800) 669-5329 for a list.
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