If “slow and steady wins the race,” then the systems integration industry was a solid victor in 2024. According to the 2024 D-Tools Year-in-Review Report, the combined residential and commercial technology installation market experienced a moderate but unspectacular sales growth rate of 6.5% for year, reflecting constant demand for professional installation of technology.
The data, which is derived from 175,000+ proposals and 70,000+ signed contracts logged in D-Tools Cloud in 2024, indicate strong demand, despite economic headwinds from inflation and election-year uncertainty. The 6.5% growth in 2024 was a notable increase from 4.6% in 2023 when supply chain disruptions and rampant inflation impacted the market. Growth was stronger in the first half of the year, while there was a slight dip in average project sizes in the second half of the year.
This free downloadable report can be used as a benchmark for both integration companies and suppliers for their own 2024 performance. The report details:
- Average integration company revenues from projects for the full year, broken down by first half and second half
- Average integration company signed contract revenues
- Average number of proposals and the close rate for signed contracts
- Hottest primary categories of equipment installed
- Gross profit margins for both product and labor by size of project
- Rate of value engineering/negotiation/discounting taking place from proposal to contract
- Percentage of proposals and contracts devoted to equipment versus labor
- The report also includes a list of 8 key takeaways for integrators to pursue in 2025.
Overall, 2024 demonstrated continued growth in the integration industry, with demand for larger projects, increasing proposal activity, and higher equipment sales. Challenges include labor shortages and intensified competition, while economic factors such as inflation and election uncertainty influenced contract values. Moving forward, the industry’s ability to capitalize on high-margin labor, expand service offerings, and adjust pricing strategies will determine long-term profitability and stability.
Download this free report today.