D-Tools recently presented a state-of-the-market update for the leadership board of the Consumer Technology Association (CTA) Smart Home Division. At the association’s headquarters in Arlington, Va., Jason Knott, Data Solutions Architect & Evangelist at D-Tools, covered a wide range of key industry metrics drawn from nearly 85,000 proposals and nearly 31,000 signed contracts in D-Tools Cloud for the first six months of 2024.
D-Tools was invited to address the CTA leadership group because the company’s data solutions are becoming known as the most accurate source of industry data for the professional smart home industry. D-Tools is able to garner actual data from proposals and contracts that are created by more than 2,100 users of D-Tools Cloud. The information is more accurate that generalized survey-based data from other industry sources.
Among the highlights from the data was that demand remains healthy for professional installation of technology in the home. Knott cited data from D-Tools Cloud that shows the average number of proposals written by integrators is up 9% for the first half of 2024. But while consumers are still actively seeking quotes for professional installation of their smart home equipment, they are being hesitant to pull the trigger and sign the installation contract, while at the same time reducing the scope of the project.
According to D-Tools Cloud data, in 2024 integrators created and shared an average of 85 proposals per company with their prospective customers. Of those proposals, only just over half of them (44), were actually converted into contracts, for a 52% closing rate. At the same time, the average contract value in the first half of 2024 grew by 10% to more than $18,000. Knott speculates that the increase in contract value is due to the higher cost of equipment and labor due to inflation, along with integrators likely expanding into new equipment categories.
Also presenting at the CTA Smart Home Division board meeting was Elizabeth Parks, president of the Dallas-based research firm Parks Associates. She focused on a broad group of smart home product categories with a strong insight into the state of the home energy market. According to Parks, only 17% of U.S. homes have smart thermostats and that market appears to be plateauing. Her conclusion is that could be a concern in the future as the electrical grid continues to age. She predicts that a decentralized energy grid will be the future with homes generating much if not all of their own power needs. She also believes the U.S. will eventually institute an individual carbon footprint tax on CO2 output.