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CEA Study Finds Home Technology Becoming a Central Component of New Construction

According to the Consumer Electronics Association’s (CEA)® 13th Annual State of Builder Technology Market Study, the market for built-in home technology is experiencing strong growth and becoming an important differentiator in new home construction. The study found that eight in ten builders now offer clients features like structured wiring (84 percent), home theater (80 percent) and monitored security systems (80 percent).

The options for home technologies installed by builders either increased or remained consistent year over year. The new study finds that in 2014, structured wiring was the most commonly-installed technology (49 percent), followed by monitored security systems (28 percent) and home theater pre-wire/system (18 percent). Fewer builders installed home automation systems or stand-alone video surveillance systems (eight percent), and intercom systems (seven percent).

“Installed home technologies are increasingly playing a key role in new construction,” said Chris Ely, senior manager, industry analysis, CEA. “Our study’s findings suggest that more consumers see the value of installed home technologies and are willing to pay for them, making them a critical component in the overall industry.”

In 2014, more builders recognized that key installed technologies have the potential to boost profits. Thirty-five percent of builders (up eight points since 2013) report that installing home theater pre-wire/systems helps boost their profit potential; 26 percent say the same about installing monitored security (up seven points); and 25 percent say structured wiring helps boost their profit potential (a 13 point increase).

The study offers a unique look into the way our homes are adopting technology. Broadband Internet is now a standard feature in homes, as nine in ten new homes are equipped with broadband cable – up from 69 percent in 2008. In addition, the percentage of homes with a dedicated home office (54 percent) and home theater room (25 percent) continue to grow, demonstrating the growing prevalence of work-from-home options and the popularity of home entertainment systems.

Approximately one in three builders say installing home technologies increased revenue. Luxury- and custom-home builders are more likely than starter-home builders to install all home technologies. In addition, townhome and multi-family builders are more likely than others to install structured wiring. The study also found custom and regional builders are more likely to install structured wiring, multi-room audio video systems and home theater pre-wire/systems, suggesting these technologies are more likely to be customizable and use local, specialty equipment providers.

“More builders say architects and/or buyer specifications are key reasons for installing home technologies,” said Ely. “This response supports the notion that home technology has become mainstream, leading to a growth in requests for new home construction installations.”

Shipment revenues in the U.S. consumer electronics market are expected to reach $223.2 billion in 2015 – a three percent increase from 2014, according to CEA’s U.S. Consumer Electronics Sales and Forecast. Home technologies are a key component of the consumer electronics industry and are forecasted to reach roughly $2.1 billion in 2015. Technology remains crucial to new home construction even as the tide of DIY solutions rises.

The full CEA 13th Annual State of the Builder Technology Market Study seeks to explore the market for home technologies in new housing construction. The study is designed and formulated by CEA Market Research, the most comprehensive source of sales data, forecasts, consumer research and historical trends for the consumer electronics industry.

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JUNG area / line coupler

JUNG area / line coupler
The JUNG area / line coupler connects two KNX lines while retaining electrical isolation. Across publicly accessible areas, such as corridors ...