Positive outlook for UK integrated home market according to CEDIA research

CEDIA has uncovered the findings of its 2021 UK Integrated Home Market Analysis, which identifies the size, shape, trends and services of the sector.

The study, which was conducted through a partnership with US market research firm, Ancrage Consulting, and in affiliation with Butler University Lacy School of Business, has found that the UK integrated home market is performing well, strengthened by the impact of consumers spending more time in their homes as a result of the Covid-19 pandemic.

It is estimated that the current market size in the UK is £1.2 billion.

Conducted during the latter half of 2021, the study had 103 integration companies participate across the UK. It looked into company size, scope and activities, as well as their business functions, installation types, equipment choices, the size of the workforce, and technology areas that are proving most important for integration companies.

It was found that there are approximately 3,700 integrator companies operating in the UK with an average annual revenue of £386,000 and an average project size of £33,000. On average, 86% of company revenue is drawn from residential projects.

The results also showed that a typical integration company employs three people and completes 10 projects per year. Half of all integration companies anticipate adding a technical resource in the next 12 months. A third of respondents stated they are considering hiring an apprentice in the next 12 months.

Although the pandemic boosted the integrated home market, the industry is positive that growth will continue with 88% of companies forecasting revenue growth in the next 12 months.

In the current UK integrated home industry, the biggest growth areas are integration/control, home cinema, and networks/network security, whereas distributed video and matrix set ups are being installed less as consumers shift to streaming.

It is expected that electrical contractors will continue to enter the market.

At the lower end of the market, the DIY trend is continuing with some respondents seeing 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,” said Matt Nimmons, CEDIA EMEA’s managing director. “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.

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