NSCA, CEA Combine on New Market Research
which examines opportunities, challenges, and perspectives of commercial and residential integrators.
The National Systems Contractors Association (NSCA) and the Consumer Electronics Association (CEA) have completed work on NSCA's latest Market Intelligence Briefing (MIB), "Commercial-Residential Crossover in the Electronic Systems Industry," which examines opportunities, challenges, and perspectives of commercial and residential integrators.
According to NSCA, despite economic challenges during the past two years, 54 percent of integrators overall have a more optimistic view of 2010 than 2009. Integrators involved in both the commercial and residential markets were slightly more optimistic, with 60 percent expecting a more positive 2010.
While the complexity and specialization of systems and services can differentiate commercial from residential projects, these industry segments often intersect at the technological, design, and information technology levels. Slightly more than half of those surveyed in the new MIB report are involved in both residential and commercial projects.
According to the report, the venue integrators focus on depends on the sector they represent. The top revenue venues for commercial integrators are corporate facilities, restaurants, retail facilities and shopping malls, and K-12 schools, according to the new study. Among those categories, retail venues best highlight areas of crossover between commercial and residential integrators because the technologies and services used for retail projects correlate with tools used by integrators working on residential projects, according to NSCA.
Not surprisingly, the single-family detached housing market is the most popular venue for residential work and was cited by 92 percent of the respondents as their most significant residential venue. The report shows there is still a significant difference between residential and commercial integrators in revenue-generating applications. Home theater, automation, and multi-room AV are the top applications for predominantly residential respondents. Commercial integrators rank audio (fixed installation, live sound), AV (display technology, interface control), video, and life safety as their top applications.
Commercial and residential integrators alike recognized the economy's effect on their companies, identifying an improving economy as an opportunity to increase business. However, the economy has also hindered financing for new projects and increased competition for both commercial and residential contractors, according to the study. Over half (55 percent) of residential contractors see an increased demand in the retrofit market as one of their top market opportunities.
The new MIB report is available for purchase at the CEA online store for $1,500. NSCA corporate members can obtain a free copy of the report by visiting www.nsca.org/mib; CEA members can obtain the report for free at http://members.CE.org.
A joint webinar to present the results is scheduled for Nov. 1 from 3 to 4 p.m. ET. For more information and to register, go to www.CE.org/Events/webcasts.asp.