In the HVAC industry, it pays to network, and your friendly neighborhood custom integrator is an especially valuable acquaintance. Also known as CEDIA integrators or custom electronics (CE) professionals, these service providers specialize in designing and installing complex, interconnected electronic systems, from private theaters to smart home control systems.
The CE and HVAC industries are increasingly intertwined. In its latest market analysis, CEDIA, the leading CE industry trade association, found that more than half of U.S. CE professionals are incorporating HVAC controls into their whole-home automation projects. This trend is expected to accelerate. As the demand for power management solutions increases, the CE industry is incorporating advanced HVAC system automation into their control system designs, beyond just temperature setpoint control. Building these systems requires a trusted HVAC industry partner. This article introduces the CE industry basics you need to fill that role.
A typical CE integration business
Custom integration is a $29 billion industry in the U.S. with an estimated 20,000 integration companies operating nationwide. Whole-home integrated controls are the largest project category, accounting for 16% of total industry revenue.
More than 80% of integrators say they have sole discretion or “great influence” over product selection. They also tend to work with customers who can afford the best products, and nearly three-quarters of integrators serve the high-end residential market. The average cost of a CE project is $15,000 for custom electronics and labor alone, not including construction, equipment, or mechanical systems. More than a quarter of projects (including the majority of “whole home control” projects with HVAC integration) exceed $60,000.
Power Management Advances and HVAC Opportunities
More than two-thirds of integrators reported incorporating more energy management systems into projects last year, and about 40% were working on projects that incorporated battery walls, renewable energy collection and electric vehicle charging.
This indicates a significant increase in energy efficiency focused projects in this sector, which may be a stepping stone for custom integration service providers. While power management and energy efficiency is a relatively new category for most system integrators, such solutions are currently the most anticipated growth area in the industry. Integrators are looking for solutions that improve their sustainability credentials, and because HVAC is typically the largest energy consumer in the home, control of these systems is becoming one of their primary goals.
CE pros are typically familiar with the process of incorporating fan coil unit controls into whole-home automation. However, when sustainability is a primary goal, unexpected issues can arise. The most energy-efficient HVAC technologies available today, including inverters, VRFs, and mini-split units, cannot communicate two-way with third-party control systems and smart thermostats that CE pros prefer. When connected to a third-party control device, they stop operating at variable speeds and revert to an “all-or-nothing” single-speed mode. This reduced performance can result in even more power consumption than a traditional fan coil unit. This inefficiency is simply unacceptable if your client is building an all-electric system or trying to achieve net-zero status.
You could control your HVAC systems individually, but that's just not the case in the CE world. Intuitive “single pane of glass” controls are the industry standard. You don't want your customers to have to pick up multiple remotes in their living room and walk to the thermostat to adjust the temperature.
Support for “single pane of glass” controls
HVAC pros can bring strong expertise to profitable whole-home control projects. Of course, what's most important is the HVAC system design itself. You have the expertise to design a system for optimal efficiency. But you should also be prepared to provide solutions on how to successfully integrate HVAC units, sensors, and other devices into your home automation system.
This means being familiar with HVAC control solutions designed to bridge the gap between HVAC and IoT systems. It also means being aware of the most popular smart home control solutions on the market and knowing which HVAC controllers can integrate with which smart home platforms.
You're probably familiar with the popular DIY smart home ecosystem including Alexa, Google Home, Samsung SmartThings, etc. Compatibility with these systems and smart thermostats such as Nest, ecobee, Honeywell, etc. is crucial for mid-market CE projects; however, the industry still sees the majority of its business in the luxury sector. The most specified control systems in the CE industry are not the big tech brands like Google, but highly customizable specialty platforms such as Control4, Crestron, Savant, Lutron, and URC.
These home automation platforms offer unique smart thermostats with premium designs and luxurious finishes that blend seamlessly with the home's other fixtures, switches, and control panels. They also offer apps that allow homeowners to monitor and control nearly every aspect of their system from anywhere in the world. CE pros (and their customers) expect the full functionality of their HVAC systems to be available and controllable from any system interface.
As you network in the CE industry, you'll find that many integrators have a preferred control platform. Platform choice varies by project. For example, Crestron and Savant have particularly strong power management capabilities, but CEDIA data shows that Lutron is the top choice across the industry for projects focused on lighting and shading control. Be prepared to offer solutions that natively integrate with your partners' preferred brands.
Partner with us
The CE industry requires HVAC expertise to deliver the efficient, sustainable systems clients desire, and you can build strong relationships by helping your local CE pro understand the differences between HVAC unit types and system designs, and how these nuances impact the homeowner experience.
Be prepared to offer insight into how different HVAC technologies and system designs can address goals like lower energy consumption and reduced system noise (always a top concern in a home theater environment). Luxury clients in the CE channel also tend to be very health-conscious. Sharing insight into how features like humidity control and air purification improve the homeowner's health could land you an invite to your next big CE project.
Of course, one of the most important things is to get to know CE pros in your area personally. Many CE pros have showrooms or retail stores you can visit, and the CEDIA website has a “Find a Smart Home Professional” tool that you can use to find a certified, trusted partner in your area. Both CE pros and HVAC pros can greatly benefit from building closer relationships. Get your business moving forward by taking the first step.