CEDIA’s annual Size and Scope of the Residential Electronic Systems Industry study report is designed to quantify, segment, characterize, and forecast the market at large. If you missed CEDIA’s Dave Pedigo presenting the results of the most recent Size and Scope study at CEDIA 2016 in Dallas, you can find that talk on our YouTube channel
Too busy? No worries — we’ve parsed some highlights, specifically in the home theater/media room universe. Such as:
Home technology professionals receive most of their residential revenue from home theater and media room installation. Close to one-fifth of all the survey respondents noted this specific category as an income driver, more than any other. Remember: that’s just a portion of the “entertainment” segment of the industry — distributed audio and video, the rebirth of high-end two channel listening, outdoor TVs, and tunes really make this area pop.
The above numbers are bouncing back — after a dip. The end of the Great Recession saw demand for home theater spike, and a rise from 2011 to 2013 reflected pent-up demand suddenly satiated. The 2014 and 2015 averages for installations dropped, hitting 23 last year, but expectations are now rebounding: an average of 28 home cinemas and/or media rooms has been forecast per installer in 2016. All signs point to a return to normalcy as the economy continues to (slowly) recover.
And revenue growth is slow and steady too — with a (positive) exception. CEDIA’s Research Manager Stephanie Simopoulos tells us, “The average 2015 revenue for home theater projects is $35,200, which has steadily increased by about four percent since 2014 — but median revenue is almost $19,600, up significantly from 2014’s $16,600.” The chart below really brings the data home.
Flat-screen manufacturers should be giving CEDIA channel businesses fruit baskets every week. Simopoulos: “With roughly 90 percent of all home tech pros installing flat screens, these folks are responsible for approximately 1.1 million screens — and influencing brand awareness on another 500,000 to 700,00 screens.” What’s more, 75 percent of dealers report recommending a specific brand. Those numbers average out to about 123 flat screens per firm per year, a number that’s held steady from 2015 to 2016.
We’ll dig into more of these numbers here in the near future, and the full 2016 report will be available to CEDIA members on Dec. 1, 2016 at no charge. (The non-member price is $999.00.) Not a member? Join here. Or do you need to renew? Here’s the link.