PowerHouse Alliance Reports 200%+ Growth in Networking Equipment Sales

11-member distribution group PowerHouse Alliance predicts home networks, 8K displays and 5G will be strong in 2021.

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PowerHouse Alliance Reports 200%+ Growth in Networking Equipment Sales

The PowerHouse Alliance anticipates networking gear to remain a strong seller in 2021.

Likely driven by the work from home and distance-learning trends, the 11 members of the PowerHouse Alliance distribution group report that sales of networking gear rose by more than 200% in 2020. Heading into 2021, the alliance members predict home networks and 4K/8K displays will be the hottest selling items.

Those are just two data points revealed in a new white paper from the PowerHouse Alliance called, “A Landscape of Change: Charting New Territory in the Custom Installation Industry.” The white paper discusses analysis of sales data and member survey data, charting product trends, emerging technologies, and other projections for 2021.

“Dealers have been on the front line of home technology as this industry was reshaped this year. With a birds-eye view of trends and transformations through our 55 distributor locations across the country, the PowerHouse Alliance distributor members adjusted to provide unparalleled support dealers over the last year,” says PowerHouse Alliance Executive Director Dennis Holzer. “To put together this white paper, we surveyed the group and analyzed our sales data from the start of the year through the end of 2020 to chart the industry’s evolution and compile our projections for 2021.”

8K Displays, 5G, Networks to Make Biggest Impact in 2021

The white paper outlines various data points in key product categories; this year, 85% PowerHouse Alliance distributor members ranked the TV/display as one of the top-selling categories in Q2 2020, followed by audio and networking. Through the year, homeowners’ new needs for working and learning at home changed demand, shifting the top-selling product categories across the country.

The growth of the networking product category began prior to the pandemic as more homes were adopting smart home devices and choosing streaming services for entertainment. Then, as working and learning at home became the norm, demand from homeowners for better networking systems: The PowerHouse Alliance reports over 200% growth in networking sales through 2020. Members expect this trend to continue into 2021 due to the pandemic.

With the rapid changes to top-selling products, the data from members shows that dealers adjusted to take on new categories through the year. The white paper details the findings from the distributor members and shares valuable insights for dealers to take on new categories, connect with potential clients, offer upgrades, and other practices to advance their business.

Along with the growth in networking, audio, and display categories in 2021, the group analyzes other upcoming trends and emerging technologies that dealers should plan to take on.

“Adapting to new technologies and trends is a regular practice for most dealers, but the year ahead is different than most,” said Holzer. “Manufacturers have done a great job at keeping up with spikes in demand, and the PowerHouse Alliance is a partner for dealers in seizing these product opportunities.”

About the Author

Jason Knott
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Jason Knott:

Jason Knott is Chief Content Officer for Emerald's Connected Brands. Jason has covered low-voltage electronics as an editor since 1990, serving as editor and publisher of Security Sales & Integration. He joined CE Pro in 2000 and serves as Editor-in-Chief of that brand. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He has been a member of the CEDIA Business Working Group since 2010. Jason graduated from the University of Southern California.