EH Research Releases Results of Custom Electronics Market Sizing Survey

Framingham, MA – January 16, 2007 – EH Research announced today the results of its most recent Product Purchase and Market Sizing Study, a survey conducted annually to gather information about the home technology product purchase history of custom electronics dealers and integrators. Results of the directly collected survey information are extended to develop an estimate of the size of the overall custom electronics market, as well as approximations of the value of the products purchased for each of 21 specific product categories.

The detailed product categories included in the study are: In wall/ceiling speakers, Floor/shelf (freestanding) speakers, Receivers, Amplifiers & Pre-amps, Multiroom Audio Distribution, Media Servers, Audio & Video Cable, Plasma Flat-Panel TV's, LCD Flat-Panel TV's, Rear Projection TV's, Front Projection Video, Screens, Racks/Mounts/Lifts/Stands, Power Conditioning/Power Quality/Surge Suppression, Home Theater Furniture/Seating/Acoustical Treatments, Whole house Automation Systems, Lighting Controls, Window Treatment Motorization/Control, Universal Wireless Remote Controls, Central Vacuum Systems, and Structured Wiring Systems.

Information was collected from a sample of custom electronics dealers and installers via an online survey questionnaire during a three-week period over late-October and early-November. Responses were received from 620 firms representing a broad cross-section of dealers/installers across the nation.

The ‘bottom line’ survey findings – combined with an estimate of the number of dealer/installer firms currently actively doing business in the custom electronics market sector – showed that approximately $5.262 billion worth of home technology product was sold into the custom electronics channel over the course of 2006. The value of purchased product by broad product group was estimated to be $1.588 billion for Video/Home Theater, $1.455 for Audio, $973 million for Home Automation/Controls, $726 million for Networking/Communications, and $520 million for Security.

Home systems installers/integrators providing information about their product purchase history had median revenues of $534,900. “Survey respondents told us that they spent more on flat-panel TVs and in-wall/in-ceiling speakers than any of the other 21 specific product categories,” said Daryl Delano, the Director of Research for EH Publishing, Inc. “But spending for lighting control, multi-room audio, and whole-house automation systems all recorded strong growth between our 2005 and 2006 product purchase surveys,” Delano continued

Dealer and installers expect for market growth – and market size for most if not all of the individual product categories that they buy and integrate into homes – to continue strong during 2007. “Almost 16% of firms are projecting revenue growth of more than 25% this year,” commented Ken Moyes, President of EH Publishing, Inc. “And, on average, custom electronics dealers/installers are expecting for 2007 revenues to beat 2006 revenues by 14%.”

For information about how to purchase EH Research’s updated and expanded Product Purchase and Market Sizing Study report and the full subscription package of all scheduled 2007 EH Research reports, please visit: http://store.homeelectronicideas.com/ehresearch.html or contact Ellen Cotton at 508-663-1500 ext. 240; .

About EH Research

EH Research taps EH Publishing’s unparalleled connected home market expertise, contacts and databases to quantify and provide insight into the custom electronics market channel. EH Research publishes quantitative market and industry studies available for sale and direct customized studies on behalf of sponsoring clients. For more information, visit www.ehonline.com/research.

About EH Publishing, Inc.

EH Publishing, Inc. is the information leader and resource for the electronic home industry. Serving the technology and construction markets, EH Publishing, Inc. reaches more than half a million electronic home professionals and consumers worldwide. Founded in 1994, EH Publishing, Inc. has defined, cultivated and raised awareness of the $13 billion electronic/installed home industry through its products, which include print publications, on-line publications, trade shows and market studies. EH Publishing, Inc. is the industry’s source for home technology information and market analysis, with the targeted print and on-line publications: Electronic House, CE Pro, ChannelPro, TecHome Builder and targeted tradeshows: Electronic House Expo (EHX) and TecHome Builder Conference and Expo (TBX). To find out more, visit www.ehpub.com.


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