CEDIA has identified major changes in the industry that will drive CEDIA dealers in 2016. These changes, both technological and market-based are accelerating rapidly and will impact many CEDIA members’ business models. As profit margins are aggressively reduced and service costs skyrocket, the electronic systems contractor (ESC) of 2016 must become an IP-focused business that is agile enough to quickly adjust their business model to adapt to the ever-changing CEDIA landscape.

“CEDIA created the ESC of 2016 white paper to serve as a tentative road map illustrating potential opportunities and threats for our members that will emerge over the next four to five years,” said CEDIA Senior Director of Emerging Trends Dave Pedigo. “Some companies will be able to continue working in their core competencies, others will diversify. The end goal is to provide our members with information that they can use to remain competitive and successful.”

The white paper is organized into multiple sections focusing on major shifts in the market place, traditional sources of revenue, and emerging market opportunities.

One major shift outlined in the white paper is the arrival of the truly “connected home” by 2016. Homes will require very sophisticated, robust and secure networks within the home that move data and content seamlessly from permanent and mobile devices. Many current ESCs do not have the in-depth knowledge of Internet Protocol (IP) required to design the connected home and thus are not ready for their clients’ needs in five years.

Integration and control, a traditional source of revenue for ESCs, will change dramatically over the next five years, with touch-panel and mobile devices supporting new modes of interaction with home electronics. The ESC of 2016 will see a new era of user interaction as touch interfaces will no longer be necessary.

An emerging market opportunity for the ESC of 2016 will be leveraging energy-monitoring solutions and smart meters. The ESC of 2016 will present integrated whole-house technology proposals for clients that give them not only the total initial installation costs but also the annual operating costs of systems.

Some additional topics covered in the white paper include distributed audio, digital home health, home theater and media room design, telepresence and robotics. The ESC of 2016 white paper is available exclusively to CEDIA members at no cost and to get it, all you have to do is e-mail techcouncil@cedia.org