02.19.2008 — Home theater systems and multiroom audio installations revenues will nearly double in the next five years, according to new research.

Parks Associates’ “High-end Entertainment Systems: Analysis and Forecasts” predicts that the market will grow from $6 billion in 2007 to $11 billion by 2012, with the number of new installations increasing from 166,000 per year in 2007 to 277,000 by 2012.

The research group cites falling costs on networking equipment as spurring market growth.

“The high-end A/V market is in a major stage of transition,” says Bill Ablondi, Director, Home Systems Research, Parks Associates.

“Digital content is approaching the performance and quality of analog media, with the added flexibility only digital content offers. Reduced costs coupled with advancements in wireless and powerline networking technologies are also growing the retrofit portion of the market, at a time when mid-market construction is slowing down. Soon PC-based systems from companies such as Dell, HP, and Cisco will compete for customers who traditionally purchased systems from JBL, Sony, and Yamaha.”

Growth in retrofit installations are also going to affect the market, Parks believes.

“Currently, the majority of high-end A/V customers are wealthy,” says Ablondid.

“In addition, most installed entertainment systems are sold into new homes or homes going through a major renovation. This mix will change as builders, installers, and integrators become more accepting of ‘no-new-wires’ technologies.”

Check out the preview of the report.