Industry Outlook: Integration Professionals Remain Positive
The CEDIA Expo/CIX 2025 hosted a panel titled "The State of the Industry," where industry experts shared their insights and predictions. The panel, moderated by Zachary Comeau, editor of CE Pro magazine, discussed various trends and opportunities in the smart home industry.
One of the key topics of discussion was the growing importance of Artificial Intelligence (AI) technology. Hank Alexander, director of Oasys Residential Technology Group, suggested that integrators should get ahead of the curve regarding AI, as he believes clients will start asking about it. Jim Pearse, president and CEO of Prosource, advised attendees to "look hard at how AI is deployed through these products."
Another significant point of discussion was the potential impact of interest rates on the industry. Hank Alexander suggested that lower interest rates could spur homebuilding, inspiring homeowners to move to larger houses and upgrade their technology. Panelists recommended that integrators keep an eye on interest rates and the larger market for home builders.
Daryl Friedman, global president and CEO of CEDIA, mentioned an improved economic outlook in the second half of 2025. However, he did not mention any specific impact of interest rates on the industry in this discussion.
The panel also discussed the current sentiment within the industry. According to a sentiment survey conducted by CEDIA, the majority of integrators consider their business as either "excellent" or "very good." This positive sentiment was reflected in the active involvement of smart home integrators and companies like NETGEAR, RING, Savant, ADI Global Distribution, and Legrand AV at the event. These companies are likely seeking to expand their technical teams within the next 12 months to meet growing demand and capitalize on this positive industry sentiment.
The panel did not discuss any other trends on the horizon besides AI technology in this paragraph. However, Chris Whitley, executive director of the Ellipsys Commercial Technology Group, stated that the residential side of the integration industry experienced a rush to buy products before tariffs went into effect in the second quarter. On the other hand, Jim Pearse noted that the commercial side of the integration industry felt the effects of tariffs through the delayed timing of some projects.
Patrick McCarthy, executive director of Azione Unlimited, stated there are not significant economic headwinds. He encouraged integrators to focus on growth opportunities and to keep an eye on the market for potential trends.
In conclusion, the CEDIA Expo/CIX 2025 event highlighted strong industry optimism, with many smart home integrators and companies actively involved in network technology innovation and preparing for growth, including hiring additional technical staff in the next 12 months. The panelists emphasised the importance of staying informed about AI technology and market conditions, particularly interest rates and home building trends, to capitalise on the positive industry sentiment.
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