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CEDIA’s Reinvigorated Research Approach Uncovers a Robust Professional Smart Home Industry

With new data streams and industry-wide participation, CEDIA captures a holistic view of the smart home industry in its 2023 Professional Smart Home Market Analysis

By Installation Staff

In December, CEDIA released its 2023 US and UK Professional Smart Home Market Analysis in partnership with cutting-edge market research firm, Ancrage Consulting LLC. For the first time ever, CEDIA has bolstered integrator survey responses with specification data from D-Tools, Portal, and WeQuote, and insights from leading manufacturers and distributors.

Residential integrators of all types and sizes are represented in the reports. Data was collected through short surveys fielded to integrators from July-Aug 2023 as well as through actual sales pipeline reports. CEDIA has structured the analysis to identify key priorities, including the size of the integrated home industry, areas of expenditure, project size, frequency and type, preferred brands by category, and future trends and investment areas.

Key US findings:

  • The US market is estimated at $29B and is supported by strong industry growth projections for the next 12 months.
  • Approximately 20,000 integrators are currently serving the US market.
  • Integrators play a dominant role in product and brand selection, with over 80% indicating they have sole or “a lot of” influence over customer purchasing decisions.
  • Integration firms complete a median of 30 projects per year and employ a median of five employees.
  • Integration firms earn a median annual residential revenue of $900,000.
  • There’s a growing trend toward a younger industry demographic, with 22% having entered the field within the past five years.
  • Two-thirds of integrators indicate that workforce and labor shortages are impacting their businesses.
  • The categories expected to grow the most over the next 12 months are lighting/shading, lighting control systems, and security systems.

Key UK findings: 

  • The UK market is estimated at £2.9B and is supported by favourable industry growth projections for the next 12 months. 
  • Approximately 3,700 integrators are currently serving the UK market. 
  • Integrators play a dominant role in product and brand selection, with 80% indicating they have sole or “a lot of” influence over customer purchasing decisions. 
  • Integration firms complete a median of 14 projects per year and employ a median of four employees. 
  • Integration firms earn a median annual residential revenue of £300,000. 
  • There’s a growing trend toward a younger industry demographic, with 19% having entered the field within the past five years. 
  • Half of the participants expect to add technical personnel in the next 12 months.
  • The categories expected to grow the most over the next 12 months are media rooms, home cinema, outdoor AV systems, and lighting/shading. 

“This year’s approach to research was revolutionary thanks to our partnerships with D-Tools, Portal, and WeQuote, and greater industry cooperation,” said CEDIA Global President and CEO Daryl Friedman. “It is CEDIA’s unique role to provide this type of information for our members, which helps them run their businesses and guide us on how best to serve our industry.”

The 2023 Professional Smart Home Market Analysis US and UK is free to download for CEDIA members from the CEDIA Store at my.cedia.org/Shop. Non-members may purchase a copy of the findings for $999/£999.