Our Industry in 2016

January 6, 2012

Predicting the future is tough work, unless you’re a psychic. That hasn’t stopped CEDIA from getting out its crystal ball to help envision what opportunities and challenges lie ahead for electronic systems contractors in 2016.

A new white paper, video, and webinar from the trade association are an attempt to help prepare ESCs, many of whom are CEDIA members, to address technology developments of the future.

CEDIA has identified major changes in the industry that will drive CEDIA dealers in 2016. These changes, both technological and market-based are accelerating rapidly and will affect many CEDIA members’ business models, the association states in its white paper. As profit margins are aggressively reduced and service costs skyrocket, the ESC of 2016 must become an IP-focused business that is agile enough to quickly adjust their business model to adapt to the ever-changing CEDIA landscape.

“CEDIA created the “ESC of 2016” white paper to serve as a tentative road map illustrating potential opportunities and threats for our members that will emerge over the next four to five years,” said CEDIA senior director of emerging trends, Dave Pedigo. “Some companies will be able to continue working in their core competencies, others will diversify. The end goal is to provide our members with information that they can use to remain competitive and successful.”

The white paper is organized into multiple sections focusing on major shifts in the market place, traditional sources of revenue, and emerging market opportunities.

One major shift outlined in the white paper is the arrival of the truly “connected home” by 2016. Homes will require very sophisticated, robust, and secure networks within the home that move data and content seamlessly from permanent and mobile devices. Many current ESCs, CEDIA points out, do not have the in-depth knowledge of Internet Protocol (IP) required to design the connected home and thus are not ready for their clients’ needs in five years.

CEDIA predicts that integration and control, a traditional source of revenue for ESCs, will change dramatically over the next five years, with touchpanel and mobile devices supporting new modes of interaction with home electronics. The ESC of 2016 will see a new era of user interaction as touch interfaces will no longer be necessary.

According to the white paper, an emerging market opportunity for the ESC of 2016 will be leveraging energy-monitoring solutions and smart meters. The ESC of 2016 will present integrated whole-house technology proposals for clients that give them not only the total initial installation costs but also the annual operating costs of systems.

Some additional topics covered in the white paper include distributed audio, digital home health, home theater and media room design, telepresence, and robotics.

The ESC of 2016 white paper is available exclusively to CEDIA members at no cost.

Members may request a copy in the CEDIA Marketplace or e-mail techcouncil@cedia.org.

Top-level findings from the white paper are shared in the most recent emerging trends video.


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