The U.S. market for custom integration/installation is expected to grow by about nine percent through 2008, according to research conducted jointly by Parks Associates and EH Publishing. Bolstered primarily by the consumer demand for "no new wires" fueling the retrofit installations market, total channel revenues are expected to grow to more than $11 billion in 2008 and steadily increase to $20 billion in the next five years.
"Overall the home building industry has softened this year, but the market served by custom installers remains solid," says Bill Ablondi, Parks Associates' Director of Home Systems Research. "Manufacturers see the opportunity for retrofit jobs through powerline- and wirelessly-enabled nodes, increasing the number of solutions aimed at this segment of the market in 2007."
According to Parks Associates, historically, dealers have split their business between new construction (50 percent) and remodeling/retrofit (50 percent). However, this division of work for dealers is poised to change for two reasons -- technology advancements (wireless and powerline) make retrofit projects more feasible to a broader market and there is a high likelihood that new owners of homes will upgrade their entertainment, security and other home systems. While on average 1.5 to 2 million new homes are built annually; 6 to 7 million existing homes change ownership every year.
Parks Associates and EH Publishing conduct ongoing research of the home systems integration/installation channels. This includes custom installers/integrators, security dealers, and other firms serving the residential market with entertainment, security and control systems. The firm is offering a free, recently completed white paper on the home systems market - Home Controls: Trends and Opportunities. To download this paper, visit www.parksassociates.com.
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