Custom Installers' Business to Bring in $20 Billion by 2012

Parks Associates and EH Publishing stated on Thursday that U.S. revenues generated through the custom integration and installation industry are projected to grow between eight and nine percent between 2007 and 2008, with total industry revenues hitting $9.8 billion in 2007 and growing to surpass $11 billion in 2008, as technology advancements permit more retrofit projects and sales by existing dealers grow.

Historically, dealers have split their business 50-50 between new construction and remodeling and retrofitting existing homes. However, this pattern is expected to change for two reasons: technological advancements, such as wireless systems and power lining, make retrofit projects more feasible to a broader market; and, there is a high probability that new owners of homes will upgrade their entertainment, security, and other home systems. On average, 1.5 to 2 million new homes are built annually in the U.S., with six to seven million existing homes changing ownership each year.

Many new owners of pre-existing homes acquire their new residence with the intent to renovate or retrofit it.

The power line retrofit method uses the existing power wiring in one's home for new networking. The advantages with this method are that no new cables required, every power socket can be a networking socket, and multiple sockets probably exist in every room.

Similarly, there is a "coax cable" method for retrofitting, which utilizes the existing television cabling in one's house to create new networking. The advantages here are that it requires no new wires and every television socket in the home can be used for networking.

The "phone line" method makes use of the existing phone wiring in one's house to create the new networking system. Again, no new wires are needed. Every phone socket in the house can be utilized for networking.