Consumer Demand for Home Technology Grows as Housing Market Regains Footing, CEA Study Finds

The study provides home technology professionals with a better understanding of homebuilders' perceptions of and motivations for installing home technology in new home construction and the remodeling market.

ARLINGTON, Va.--The Consumer Electronics Association (CEA)® today released the 10th Annual State of the Builder Technology Market Study, which found installed home technology is strongly solidified in builders' portfolios of services and offerings. Entertainment and automation solutions are helping builders differentiate their businesses, while more common home technologies like structured wiring are necessary to compete effectively in the market.


"This year's study confirms CEA's long-held belief and prediction that home technology would make a positive contribution to the inevitable housing market recovery as home buyers' digital lifestyles and desires for energy efficiency factor into purchasing decisions," said Steve Koenig, CEA's director of industry analysis. "For example, home automation and lighting controls tap into buyers' rising concerns regarding energy costs, while a focus on home theater and multi-room audio demonstrate that builders can meet the growing homeowners' demands to access entertainment anywhere in the home."

The study found an increase in installations across all technology sectors, with the biggest gains in structured wiring (63 percent of new homes in 2011 vs. 45 percent of new homes in 2010). Energy management solutions, such as automated lighting controls (12 percent vs. 7 percent) and home automation (10 percent vs. 5 percent) were at all-time highs. Entertainment features also performed strongly in 2011 with the multi-room audio (23 percent) and home theater (29 percent) installations rebounding strongly after their recession-period lows.

The study also found that builders have embraced other construction opportunities such as remodeling existing homes (57 percent). Even as the housing market shows signs of life, industry players should not lose their focus on aftermarket opportunities, as one in five builders cite remodeling has generated more revenue than new home building in the past 12 months.

CEA's study was conducted in conjunction with the National Association of Home Builders (NAHB) Research Center, which gathered data through the Annual Builder Practices Survey, including new construction information from U.S. homebuilders. The study provides home technology professionals with a better understanding of homebuilders' perceptions of and motivations for installing home technology in new home construction and the remodeling market.

The 10th Annual State of the Builder Technology Market Study (May 2012) was conducted from December 13, 2011 - January 9, 2012. It was 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. Please cite any information to the Consumer Electronics Association (CEA) ®. The report is available free to CEA member companies. Non-members may purchase the report for $699 at the CEA Store.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the $195 billion U.S. consumer electronics industry. More than 2,000 companies enjoy the benefits of CEA membership, including legislative advocacy, market research, technical training and education, industry promotion, standards development and the fostering of business and strategic relationships. CEA also owns and produces the International CES - The Global Stage for Innovation. All profits from CES are reinvested into CEA's industry services. Find CEA online at www.CE.org, www.DeclareInnovation.com and through social media; https://www.facebook.com/#!/CEAfeed; http://twitter.com/ceafeed; http://blog.ce.org/.

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