Demand for advanced products, such as Blu-ray players, light-emitting diode (LED) TVs and 3-D TVs will also likely drive industry growth
Los Angeles, California (PRWEB) December 14, 2011
According to a new industry report from IBISWorld, the outlook for the TV and Home Installation Services industry looks bright, with revenue forecast to rise at an average annual rate of 4.2% to $13.7 billion in the five years to 2016. Improved economic conditions will likely boost consumer spending, encouraging consumers to spend more on electronics, such as TVs and home theaters and their associated installation services. In fact, revenue is projected to increase 4.5% in 2012 alone. The industry will also benefit from the gradual recovery of the housing market, with renovations and housing starts expected to increase over the next five years, spurring demand for installation services. For this reason, industry research firm IBISWorld has added a report on the TV and Home Installation Services industry to its growing Lifestyle Goods Stores report collection.
TVs and home theater systems have become the heart of the modern-day home. According to IBISWorld analyst, Nima Samadi, prior to the recession, the TV and Home Theater Installation Services industry benefited from increasing consumer spending, falling product prices and greater product choices. These factors drove consumers to purchase new electronics and opt for their associated installation services. However, the collapse of the US housing market, the subprime crises and the subsequent crippling recession dealt a blow to the industry near the end of 2008. In light of these conditions, IBISWorld estimates that revenue fell over the five years to 2011, with revenue anticipated to grow in 2011.
As the economy fell deeper into a recession and unemployment numbers rose, consumers became more selective about how they spent disposable income. In 2009, consumer spending declined and luxuries like buying electronics and paying for their installation were among the first expenditures to go. Home theater purchases and installations often accompany home improvements and home purchases. Spending on home improvements surged prior to the collapse of the real estate and financial markets. With falling home values and a greater proportion of homeowners underwater on their mortgage, many households had no incentive to put money into a property that now belonged to the bank. Housing starts also plummeted between 2006 and 2008, and they have only slowly recovered since then. Revenue grew in 2010 and is expected to have grown in 2011, largely in response to the gradual rise in consumer spending.
“Through 2016, the projected economic recovery that will underpin renewed consumer spending will likely spur the industry's comeback,” says Samadi. While spending will not immediately reach the fervor experienced prior to the recession, renewed confidence in the economy is projected to drive electronics sales and their associated installation services. “Demand for advanced products, such as Blu-ray players, light-emitting diode (LED) TVs and 3-D TVs will also likely drive industry growth.” To this end, revenue in the TV and Home Installation Services industry is forecast to increase at an average annual rate of 4.2% to $13.7 billion over the five years to 2016.
For more information, including latest Industry trends, statistics, analysis and market share information, download the full report from IBISWorld on the TV and Home Installation Services industry
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Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.