Structured Wiring industry crossing into lucrative residential market, ABI says

Date Line City: Oyster Bay, New York
Date of Release: 6/21/99
Contact Info: Navin Sabharwal Tel: 516-624-3113
Web Site: www.alliedworld.com

The structured wiring concept has begun to accelerate as it moves beyond the commercial sector into the residential market, according to a new study from Allied Business Intelligence, (ABI). The total revenues from installations are expected to almost triple to $207.9 million in 1999 from $69.5 million in 1998, further increasing to $1.7 billion by 2004. Driving this growth will be the prospect that in the near future the majority of new homes will be properly wired for advanced and futuristic applications. ABI examines the Residential Structured Wiring (RSW) industry in its latest report covering the subject: Residential Structured Wiring and Cabling Systems: Industry Trends, Player Assessment, Market Segmentation and Forecasts.

The market for residential structured cabling systems has grown steadily since 1992 when the first professional installations started appearing. However, the total market has remained small with most installations going into high-end custom homes. Today, as production builders and developers begin to embrace the concept, the number of installations is projected to explode from 34,500 housing units in 1998 to 112,800 housing units in 1999.

Large players entering the industry such as vendor IBM and supplier/installer Bell Atlantic has helped raise the profile of the growing industry. Already established in the market are Lucent Technologies, USTec, OnQ Technologies, and Greyfox Systems. The expansion of the market will create one-stop shopping for systems, as indicated by supplier Tandy’s acquisition of systems integrator AmeriLink.

The RSW market is a segment of the Home Automation Networking Systems (HANS) industry and takes a "hardwired" approach to creating an in-home network that can support data, multimedia and control networks. Therefore the growth of structured wiring installations, primarily in new housing, will create revenue opportunities for other HANS players as well as a multitude of service providers.

Much of the demand for structured wiring systems is driven by technology savvy consumers who realize traditional residential telecommunications infrastructure is inadequate for their data and entertainment needs. Not surprisingly the current impact of the Internet has played a key role in this, with the steady rollout of broadband services increasing the need for a new residential wiring paradigm.

Allied Business Intelligence, Inc. is an Oyster Bay, NY-based technology research think-tank specializing in communications and emerging technology markets. ABI publishes strategic research on the broadband, wireless, electronics, automation, energy, and transportation industries. Details of these studies can be found at www.alliedworld.com . Or call 516-624-3113 for more info.