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Research: CEDIA Releases 2019 Size and Scope Study

Research confirms industry optimism.

CEDIA says results of its newly-released “2019 U.S. Size and Scope of the Integrated Residential Technology Industry” survey show home technology integrators are highly confident in capturing new business and growing revenue. The survey also points to challenges concerning the workforce, market competition, and client expectations.

Each year, the association undertakes this research to analyze the size of the market and identify market trends. Respondents were surveyed online from May 22–July 11, 2019 and report on revenue figures from 2018 and expectations for 2019.

“The results of this survey provide a glimpse into what integrators are experiencing in their world,” says CEDIA vice president of marketing and industry outreach Cris Pyle. “The figures will help those involved in home technology understand the complexities of current and future dynamics shaping the industry. For manufacturers, the survey offers specific answers about the customers they serve, the products they use, and the perceptions of their brands. Our partner, The Farnsworth Group, tracks a host of national economic, demographic, and population data and have strategically used these drivers to inform the results.”

Farnsworth Group business development director Grant Farnsworth says limited housing inventory and increasing prices have been a huge driver, creating a “perfect storm” for people to stay in their current homes and remodel with features to enhance their lifestyles. “High home prices are affecting mobility…owners are moving less and staying in their homes longer, which means the retrofit market will continue to be a strong opportunity for integrators,” he says.

The luxury housing inventory is outpacing sales in the U.S. and demonstrating a slowdown from current years. Farnsworth says, “There is a critical lack of new, affordable homes in the United States. These homes sell quickly and often to young buyers who are digital natives. While the homes and budgets may be smaller, this is a huge potential customer base for customized technology in the home.”

Additional points the report revealed include:

  • Based on average annual revenue figures and median projects and median revenue figures, the total U.S. Residential Technology Market Size in 2018 is more than $18 billion; an increase from $16.5 billion in 2017
  • Average total gross revenue for integration firms increased $400k from 2017 to 2018 with a more modest growth estimate for 2019
  • 42 percent of an integrations firm’s residential revenues in 2018 came from new single-family homes, 49 percent from retrofits, and 9 percent from multi-family units
  • Whole-home control systems saw a small decline in the average number of installs from 2017 to 2018, but also the biggest jump in per project revenue ($10,000 increase)
  • Integrators experienced an 11 percent increase in lighting control projects that included a shading/motorized window treatment installation in 2018
  • Top challenges experienced in 2018 were finding qualified employees, competing with DIY companies and products, and educating clients/setting realistic expectations
  • The average number of full-time employees at companies in 2018 was 12, a number expected to hold in 2019
  • Home builders continue to be the number one source of bid requests, followed closely by remodelers

The full report is available now; CEDIA members may download a complimentary copy at and non-members may purchase the report for $1000.

Farnsworth Group, based in Indianapolis, conducted the survey. The company provides custom research solutions for clients in the home and building, lawn and garden, and agriculture industries.