Seventy-five percent expect sales to improve in 2010

On average, U.S. home systems integrators, who have had revenues fall for the past two years, expect sales to pick up by more than 9% in 2010 over 2009, according to Home Systems: Channel and Consumer Monitor.

This report includes results of a fourth-quarter 2009 survey of integrators installing home controls, entertainment systems, and energy management solutions, conducted as a joint effort from international research firm Parks Associates and the Custom Electronic Design & Installation Association (CEDIA).

“Many integrators made adjustments in 2009 to compensate for challenging business conditions,” said Parks Associates. “Overall sales declined 4% last year, but one in three integrators reported an increase in business. Many of these firms diversified their offerings, focused on retrofit and upgrade opportunities, hired more sales staff, and enhanced customer support.”

Channel and Consumer Monitor reports that integrators continue to generate two-thirds of their revenue from A/V systems but many integrators plan to diversity in 2010 by adding lighting controls and solar panels to their 2010 offerings. Approximately 40% of integrators plan to begin installing photovoltaic solar panels, and another 38% are seeking more information on this product category to determine its viability. In addition, the trend toward more retrofit projects, which accounted for 63% of 2009 revenues, will continue.

“CEDIA is diligently researching and developing education content to help our members understand and benefit from new business opportunities including sustainable lifestyle systems, retrofit, and 3D technology to name a few,” said Utz Baldwin, CEO, CEDIA. “Currently, information is readily available to members and non-members through CEDIA’s Power Hour Webinar Series, which focus on specific business opportunities and strategies each month.”

“Most integrators are willing to make significant changes to move with the market,” Parks Associates said. “One area that ESCs need to explore further is selling service programs or contracts, which is currently a small portion of the typical firm’s revenue.”

For more information on Home Systems: Channel and Consumer Monitor, contact [email protected], 972-490-1113, or visit http://www.parksassociates.com.

About Parks Associates: Parks Associates, a woman-founded and certified business, is an internationally recognized market research and consulting company specializing in emerging consumer technology products and services. Founded in 1986, Parks Associates provides business intelligence and research services through its proprietary methodologies developed over decades, including quarterly surveys of 10,000 internet households.

The company's expertise crosses many industries: home security and smart home, streaming video, broadband and pay-TV services, digital media and platforms, gaming, Wi-Fi and home networks, connected health, support, consumer electronics, home control systems, energy management, and tech solutions for the multi-dwelling (MDU), small-to-medium business (SMB), and commercial building markets.

Each year, Parks Associates brings thousands of leaders together for its webinars and annual events. The firm hosts the annual executive research and strategy conferences CONNECTIONS™, Connected Health Summit, Smart Energy Summit, Smart Spaces, and Future of Video. https://www.parksassociates.com
 

Next: Security monitoring revenues increase despite declines in sales and home construction

Be the first to leave a comment.

Have a comment? Login or create an account to start a discussion.