CEDIA Research Reveals that the UK Residential Custom Install Market Continues to Grow
CEDIA (the Custom Electronic Design and Installation Association) has announced the findings of its second extensive survey into the UK r...
CEDIA (the Custom Electronic Design and Installation Association) has announced the findings of its second extensive survey into the UK residential custom installation sector. The results show an industry anticipating healthy annual growth in turnover this year.
According to the research, the outlook is positive for the industry - with average projected turnover for CI companies in 2013 looking to exceed the reported £1m in 2012. Another significant finding showed that in 2013 the number of individuals employed as ESP’s in the UK has increased 12% year-on-year to over 11,250. The growth of a skilled labour force points to greater market confidence and higher 2013 sales for the residential custom installation industry as a whole.
“The research presents a positive outlook for the CI industry, demonstrating that we are steadily growing and creating new jobs within the sector. As we’ve recently come out of a long period of recession, the results paint a promising picture of growth, expansion and employment opportunities,” says CEDIA’s Executive Director in Region 1, Wendy Griffiths. “This in-depth market research is significant for our sector and has become an annual barometer for the state of the industry. It’s an essential tool to help those expanding and investing in their businesses, and is proof of the exciting opportunities that exist in the residential CI sector”.
This comprehensive research project, commissioned by CEDIA Region 1 (the UK, Europe, the CIS, Middle East, Africa, India and Pakistan), was carried out by international market research company, Parks Associates from July until October this year. Around a quarter of the industry took part in the survey.
Other findings in the survey included:
The market research sized the UK residential custom installation sector as worth from between £840 million and £875 million in 2012.
The average number of projects completed is projected to be 24, up on 21 projects in 2012.70% of firms said they exclusively completed projects only in the UK (up on 42% in 2012); 30% carried out installations worldwide, with the majority taking place in continental Europe.
Average gross turnover in 2012 was £1 million, lower than that of 2011 (£1.27 million). With £741,000 reported for the first half of 2013, full year 2013 will approach 2011 levels and exceed 2012.
HTP’s are increasingly including cloud/streaming services – 64% reported including these in 2013 compared to 57% in 2012.
60% of all projects take place in existing homes and 40% in new-build properties.
Equipment costs continue to account for approximately half the value of a typical project. 23% of equipment costs are for wires and interconnections.
An estimated 1250 companies are active in the UK residential custom installation sector.
77% of companies reported installing structured wiring in the first half of 2013, up from 72% in 2012. Also showing growth this year is security (alarm) systems at 41%, a rise of 3% from 2012.
HTPs project that 16% of all TV/screens sales will be Ultra HD in the 12 months following the survey (second half of 2013 to second half of 2014).
AV projects account for approximately 48% of all HTP residential turnover, with home cinema/media rooms the largest slice at 21%, followed by lighting control/design at 12%.
A full copy of the UK market research report will be available in January 2014. The full report is free to those CEDIA member companies who contributed to the survey and priced at £299.00 to CEDIA members and £599.00 to non-members. A free abridged version of the report is automatically available to all CEDIA members, plus non-members who participated in the survey. Please email firstname.lastname@example.org for details.
CEDIA plans to repeat the UK survey in 2014.
Parks Associates is an internationally recognised market research and consulting company, specialising in emerging consumer technology products and services. CEDIA has worked with Parks Associates since 1998, and the partnership has recently seen the company conduct market research for CEDIA in the U.S. As a result, they understand the sector and are ideally placed to provide high quality results for CEDIA in Region 1.
 From 10,000 individuals employed as HTP’s in 2012 in the UK