2024 was an important year in the smart home industry, with big news stories, acquisitions, mergers, new innovations and new trends emerging that are sure to shape the industry. The year saw the resurgence of the home theater market, design-centric solutions, AI-enhanced security, new home energy solutions, a renewed emphasis on voice control, a continued surge in lighting advancements, and others. So, with the new year upon us, CE Pro asked industry professionals from across the market to look into the future and offer their predictions on the future of the custom smart home space in 2025.
In reviewing their responses, several key themes emerged, many of which reflect continued momentum for the emerging technologies and trends we saw in 2024, including AI, a desire for design-centric technology solutions, and the increasing appeal of lighting and shading solutions, among others.
Here is a sampling of what industry pros had to say about their predictions for the new year.
“From our perspective, we believe that the custom installation market in 2025 will be dominated by lighting. We’ve seen a significant increase in customer interest in Lutron, more in lighting than with shades, and have been installing a lot of Lutron RA3 and HomeWorks panelized lighting.
“Lutron’s Lumaris tunable LED tape light is also becoming more popular, and it works seamlessly with both HomeWorks and RA. We’ve been installing Lumaris on staircases, under cabinets, in toe kicks, tray ceilings, and coves for a soft and elegant glow.
Lightapalooza took place in late February, and the growth of the event has mirrored the rapid ascension lighting fixtures and controls.
“The market has become flooded with new lighting options, however there are a lot of not-great solutions—products that aren’t easy to use or are isolated from integration with other platforms (especially when it comes to color). With Lutron, you have one app, and from that app you can not only control Lutron-branded products but also third-party fixtures for a very well-designed experience for the customer.
“The quality of light is also crucial as homeowners begin to truly understand what digitally addressable tunable lighting and automation can do for their mood, health, and lifestyle.
“Of course, in our market here in Tampa, disaster recovery and preparedness are always important, and that will continue to be the case with a focus on repairing what was damaged in last year’s storms, as well as preparing homes with hurricane screens, whole home surge protection, remote access to the home network, water sensors, and making sure things like back-up generators are designed properly to ensure the critical equipment is online should the power go out.”
“AI applications will continue to broaden their impact. Tools like Fireflies enable integrators to capture crucial details during rough walkthroughs and client consultations, as well as record voice memos of the actual conversations.
“Cybersecurity from an integrator’s back-office perspective is going to continue to be an issue and huge liability in our industry. How many integrators are currently carrying cybersecurity insurance? Let’s start there. Protecting customer’s data isn’t prioritized as it should be and with even the modest 341% percentage growth in phishing and cyberattacks this year, basic firewalls and data protection is still not a much discussed concern in this industry.
“8K will continue to gain traction and high-end content servers like Kaleidescape will see more demand for premium entertainment experiences with the growth and adaptation of 8K and high res video content processing.
“Service membership subscription platforms will continue to expand. Like it or not, it is here to stay and there are plenty of opportunities for integrators to get on the RMR bandwagon.”
“The wellness real estate market has experienced remarkable growth, expanding from $225 billion in 2019 to $438 billion in 2023, and is projected to more than double to $913 billion by 2028.
“This surge underscores the increasing consumer demand for healthier living environments and the pivotal role of the custom integration (CI) channel in meeting this demand. Integrators are uniquely positioned to implement advanced monitoring, control, and automation systems that enhance indoor air and water quality, delivering measurable health benefits.
“Collaboration among architectural, design, and integration professionals is essential to educate homeowners on the profound impact of their built environments on long-term health. By working together, we can ensure that wellness becomes a cornerstone of modern home design, aligning with the industry’s projected growth and consumer expectations.
“Incorporating wellness solutions into your offerings is not just an opportunity—it’s becoming a necessity. As the wellness real estate market continues its rapid expansion, integrators who fail to embrace this trend risk falling behind competitors who have already prioritized wellness technologies. The demand for healthier living environments is here to stay, and the CI channel must adapt to remain relevant and meet evolving consumer expectations.”
“The significant growth of fixture sales by custom integrators is expected to continue as more firms adopt the category and recognize its potential. However, many will quickly learn that success in this space comes with its own set of challenges.
“Unlike legacy AV systems, lighting control, or shade installations, fixture sales require a deeper level of expertise in project management. From specifying the correct fixtures and their placement to coordinating with trades, resolving construction conflicts, and managing lead times, the complexity of this category demands specialized knowledge and dedicated personnel.
“This is precisely why Lightapalooza has continued to grow as the premier event for the industry, providing the education, training, and best practice sharing that integrators need to succeed in this dynamic and challenging category.”
“What we’ve been seeing more and more is requests for less and less. What I mean by that is that the homeowners within our circle of clientele are all looking for the same thing: simple. The less buttons something has and the less they must think, the better. So, from the tech standpoint, we build them simplified.
“What we still see as the front and center is the Samsung The Frame TV. More-so than any mirror TV option or anything else. No more local sources is the second piece to this that we are seeing way more than ever before. YouTube TV and Hulu Live are the two leading choices that we see are happening. I have never seen customers happier than when they return their cable boxes!
“Aside from cutting the cord, designers have also seemed to finally acknowledge technology because of the Samsung The Frame TV. They are showing up in drawings from designers and on prints from architects. So, the two biggest, most consistent things we are seeing from 2022 through 2024 are requests for Samsung Frame TVs and no cable boxes. Throw in a Sonos Arc, rears and sub and people love the nonexistence of a receiver, programmable remote, sources, programming, etc. Simplicity is the focus.
“This is a bigger deal than it seems when working with wealthy clients and large, sizable homes. It seems it should be easier, but creating a reliable simplified system can be more challenging than having a control platform overlay. There are many things to think about to make the system simpler and “dumber” so to speak. But customers are on board to pay for the time to design them in a way that when it’s all said and done, they are ‘not thinking’ when they go to use them. Native apps are also a preferred method of control for many customers.”
“My perspective is from both a residential custom integration firm and from the project management side as the owner of ProjX360 project management software made for integrators by integrators. The issue both homeowners and integrators face is an overabundance of apps. Clients are looking for true automation and integration instead of having multiple apps that don’t talk to each other. They are more interested in solutions like Crestron Home, where they can control their lighting, shades, audio, video, security, and HVAC—all from one app.
“Homeowners are becoming increasingly savvy and realizing that DIY products and their respective apps aren’t always the answer for ease of use, especially for larger homes. This is good news for the custom home integrator from a project management perspective because it’s easier to design projects this way. Philosophically, integrators are facing the same issue as homeowners. To run their businesses effectively, they don’t want apps reluctantly holding hands but not really communicating. They want one software workhouse—like ProjX360—to replace them all.”
“AI is going to expand into every aspect of the smart home experience. From generating configuration recommendations to making control systems more efficient to setup, AI is going to optimize the commissioning process for professionals and DIY consumers.
“AI will play an increasing role in the tech support process for professional installers as a rapid response agent for clients. Also, for manufacturers to monitor systems, flag alerts, and keep customer data secure.
“Once a system has been installed, AI will completely transform the user experience with recommended actions and proactive automation. Users will never have to think about the perfect light brightness or color temperature, or remember to close their garage door after returning home for the evening; AI will set everything perfectly to help clients live more comfortably.
“Customizing and personalizing programming becomes much easier with AI. A user-friendly feature of the Josh.ai platform is the ability for clients to create automations by simply dictating in natural language what they want to happen.
“While AI will make software interfaces more powerful, the remote will become simpler. Remotes with screens will begin to fade since customer preferences will shift to the AI-powered GUIs on their phones and tablets. The increasing prevalence of streaming will result in users seeking minimalistic hard-button remotes with universal functionality. Push-to-talk voice control that can navigate TV content and access more devices throughout the home will become a standard feature in modern remote controls.”
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