CEDIA: 20 Percent Revenue Increase Seen For Integrators
Integration and installation companies saw a 15 percent increase in gross revenue last year, and are expecting a 20 percent rise this year. That's according to preliminary figures from the Size and Scope of the Residential Electronic Systems Market study, which will be released in full in October.
Other findings, according to CEDIA:
• More Systems Integration / AV Installation companies are noticing a shift from hardware sales to service/labor sales caused by cloud based content management - 38% indicate a moderate increase in service/labor sales (up from 29% in 2013) and 23% indicate a moderate decline in hardware sales (up from 18% in 2013) from cloud based content management.
• In 2013, Systems Integration / AV installation companies report that 56% of the flat panels they worked with as a part of a project were sold to the customer as a part of the project, 22% were already in the clients home, and 22% that were purchased by the client through retail for the project. When the client purchased the flat panel through retail, 78% of time the integrator impacted the purchase by suggesting the brand to choose.
• In 2013, respondents only expected 11% of their TV sales in the next 12 months to come from Ultra-HD/4K sets. This jumped substantially, to 25% in the 2014 study. They also estimated that 29% of those sales will include sales of Ultra HD/4K player or media server.
• Distributed audio installations including internet connected wireless speakers increased from 16% in 2012 to an expected 26% in 2014. This was coupled with an increase in the number of respondents that believe these products will help their business from direct consumer demand.
"This report continues the great data we have been seeing all year on integrator performance in 2013 and expected performance in 2014,'" said Erica Shonkwiler, CEDIA Research Consultant. "Revenue, project numbers, and project sizes are all continuing to trend up."