Integrators Predict Impending Custom Electronics Market Changes

CEDIA recently released the results of its newest Integrated Home Market Analysis survey, which found that the home tech industry is now worth over $20 billion. But their revelation of this data included some extra research they conducted surrounding integrators’ thoughts on current custom electronics market trends.

We thought one of their questions was particularly interesting. They asked integrator survey-takers, “from your vantage point as an integrator, what changes in the market do you predict over the next two years?”

While many answered this question in so many words, CEDIA highlighted a few responses which represented many replies:

An increased focus on true “luxury” home systems

I have found that DIY products have taken over a lot of the smaller integration projects, impacting income for smaller companies. Dealers/integrators need to get more involved with luxury systems and devices to integrate into more financially successful individuals’ homes to keep up with the ever-changing market — however, these changes need to be backed by education.

— Anonymous Integrator

Battle over IOT and the DIY mindset. Manufacturer partners continue to dismiss the value in small companies by raising quotas, free freight, and allocations to larger dealers.

— Anonymous Integrator

Some replies harped on the proliferation of DIY, stressing that integration firms of all sizes need to know how to separate themselves from “small potatoes” and position themselves for larger, costlier systems.

One potential strategy is to expand aggressively into home security. A new study says 27% of U.S. broadband households report far more concern now about the physical security of home than five years ago (that number rises to 43% among households with children). While many of these homes will ultimately decide to pursue a DIY option, integrators can target those willing to spend more on AV by adding security to the conversation.

DIY’s Hidden Blessing: Competition Drives Choice in Home Security

Ease of integration & operation control

Greater degree of automatic product discovery and integration into automatic systems such as Savant, Crestron, Control4, less configuration for the integrator.

— Anonymous Integrator

More apparent control by customer. Less complexity.

— Anonymous Integrator

Many responses talked about the continuing need for product integration into popular automatic systems. Whether this is the result of past pressures on manufacturers to create interoperability or a sign that integrators are willing to continue to pressure them, it bodes well for future projects if technology continues to grow more efficient to set up.

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