Industry bullish according to latest CEDIA CI market analysis

posted on Monday, 4th April 2022 by Steve May

CEDIA  home cinema  Smart home 

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A typical custom installation company completes ten projects a year, with the bulk of its revenue (86 per cent) coming from residential jobs. That’s just two key findings from CEDIA’s 2021 UK Integrated Home Market analysis.

The industry report, CEDIA’s first since 2017, reveals the scale, shape, trends and services behind the sector. Despite adverse economic conditions, it confirms that the CI industry is performing well, as consumers concentrate their spending on their home.

CEDIA partnered with US market research firm, Ancrage Consulting, to conduct the survey during the latter half of 2021. Key areas of interest were company size, scope and activities, installation types, equipment choices and technology trends.

The current size of the UK custom install market is estimated to be £1.2 billion.

According to the report, approximately 3,700 integrator companies are currently operating in the UK, with an average annual revenue of £386,000 and an average project size of £33,000. The typical integration company employs three people.

The industry is optimistic about further development, with 88 per cent of companies forecasting revenue growth in the next 12 months. 50 per cent of respondents anticipate hiring a technical resource in the next 12-months

A third of respondents also stated that they were considering hiring an apprentice in the next 12 months

Growth areas for the UK market are thought to be integration and control, home cinema and networks and network security.

There is a move away from distributed video solutions and matrix set ups though, as streaming solutions become predominant.

The market analysis also identifies that electrical contractors are expected to continue entering the business, with some respondees predicting a widening gap between the mass market and bespoke systems

“Our UK Integrated Home Market Analysis reveals an industry in excellent shape and confident about the future after the challenges and the opportunities presented by the pandemic,” says Matt Nimmons, Managing Director of CEDIA EMEA. “Building on our last research project in 2017, this survey brings the industry strong comparative data on business growth and market opportunities as well as valuable information on important technology and brand buying trends.”

The 2021 UK Integrated Home Market Analysis will be available free of charge to all CEDIA members and is priced at £999 for non-members. More at cedia.net .

Steve May

Inside CI Editor Steve May is a freelance technology specialist who also writes for T3TechRadarHome Cinema Choice, Trusted Reviews and The Luxe Review.

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